1. The Fear of Sending an International Payment for the First Time
The notion of doing an overseas transfer for the first time can be terrifying. You are really just transferring your hard-earned money across the boarder, beyond vast oceans in any unknown hands of another perhaps a manufacturer from China or elsewhere far away in Asia. I promise, it’s a nerve-wracking experience. I remember the first time I sent a $1500 wire to a manufacturer halfway around the world as if it was yesterday. … Now, that might not seem like a lot today but at this point in my life it was the biggest gamble I had ever taken … Quite honestly, $50 would have felt like a gamble.
However, do not despair — this is a walkthrough of international payments that will have you rest easy for the night.
2. Solution 1: The Classic Bank Wire Transfer.
The most typical way to send money abroad over the last years has been bank wire transfers. It is simple, straightforward and familiar. It transfers the money in your local bank to a different account overseas dorm one more party, my platform.
But here is the major catch—after this money has been sent, there are pretty much no failsafes. We dont have that option then and if the Manufacturer disappears or even deceives, So does your money! For my first bank transfer, I might as well have been playing a hand of craps. I closed my eyes, gasped and held it in praying for the best. The “What if. ..?” anxiety loomed over me.
3. A PayPal Business Account: A Safe House for International Payments
Most of you are likely familiar with PayPal. We all have employed it for lightning online payments. However, did you know that PayPal Business Accounts can do wonders for sending money internationally?
But 3% is not cheap, no? But YOU will also receive something in exchange Peace of mind. PayPal comes with buyer protection, whereas bank transfers not only can take days to settle but if something goes pear-shaped you are at the mercy of goodwill. Trust is currency and you pay a premium to acquire security via Paypal.
My advice? Although smaller fees may be discouraging to some, if you are working with a new supplier or engaging in your first transaction through Alipay the added security makes this fee worth it — especially when avoiding unnecessary stress is something worth paying for.
4. Purchase Orders Are the Bedrock of Transaction Integrity
Another important (read mandatory) point in international transactions is, to have a Purchase Order(PO). The contract covers all aspects of the deal, from a detailed description of what is being sold to such things as payment terms and how items will be shipped.
And trust you, everything in writing. On a lighter note whenever significant payments relatesto be sure and draft that PO — sign this document. It is a precaution well-accepted by the industry; it reduces ambiguity or disputes are reduced, and defines what has been committed.
5. Top Pick — Alibaba Trade Assurance
Today we will work you through what is my most favored option — Alibaba Trade Assurance. Oh and if you wonder why I love it so much: because Alibaba has the simplicity with security in one package.
Here is the process: you submit your purchase order and make payment via Alibaba secure Trade Assurance platform directly. In case of any problem related to delivery, quality or timeline you simply file for a dispute and it will get resolved shortly.
Best part? There are no high fees which pay pal has. Although there might be a few handling fees charged, it is still one of the most cost-effective and secure way to trade. In case you are still iffy about international payments, take a look at my video on Alibaba Trade Assurance where I break it down even more.
6. Telegraphic Transfer (TT): Low-Cost Yet Dangerous—Beware!
With TT or Telegraphic Transfer being another method which is a bank-to-bank wire transfer generally with for international payments. Sometimes it is a cheaper way to go since you avoid PayPal or Alibaba fees.
But one word of caution: This is risky fChain Unless you did already a lot of times business with the supplier and built fully up, sending money via TT can be considered further gambling
My personal advice? You should only use TT after you have successfully done a few transactions through with your supplier — probably on the 3rd or 4th order. You should be comfortable buying in bulk then trusting the factory at that point.
7. Wise: the Cheaper Method, not Without Caveats
Wise (formerly TransferWise) is one of the popular choices to get paid across countries. This is one that many entrepreneurs, particularly in the States, Canada and Europe swear by.
However, they got me on a good plot twist :0 except that being here in Costa Rica I have not used it. Interestingly, Costa Rica is not well supported by Wise so I have never had a chance to try them.
Conversely, some of my friends back in Argentina and here in Spain claim they have no problem using Wise. It is claimed to be a cheap, effective and competitive exchange rate currency. Make sure your region supports Wise, if you are thinking about this option.
8. In Conclusion: Opt for the Payment Method That Suits You Best
So, what are you supposed to do now that you know all of this?
The reality is—there are a few options ranging from safe and expensive to cheap with high risk. For starters, it is important that security takes precedence over saving a couple of bucks on fees.
My top recommendation? Start with Alibaba Trade Assurance. Safe, affordable, and easy to operate, it enables you to make payments abroad with one less reason for worry in the back of your mind.
After completing a few deals and establishing trust with suppliers, you can explore alternative options that may cost less and help increase your profit margins. Additionally, for those looking for immediate liquidity, 소액결제현금화 can be an alternative solution worth considering in specific situations.
For now, focus on security and transparency first.
Last Word: Be Bold, Take Risks, and Scale Up!
Starting a business involves high risk, and navigating international payments is one of the first strategic decisions you will make. Make informed choices, take calculated risks, and most importantly—keep growing!
