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Safe Payments = Safe Sourcing

Why is it so hard to locate a “supplier” that will take payments by “Credit Card”? Are credit cards not USED by Chinese people? I ALSO have trouble finding one which will take payment through an “Escrow” service. How is an American “buyer” supposed to have any “security” on a business transaction? I was ALREADY “scammed” for $1000.00 which “just had to be” sent through Western Union. After they collected the money, I was NEVER able to contact them again. THAT happened on June 2nd. 

 

Let’s look at each question one by one.

Why is it so hard to locate a “supplier” that will take payments by “Credit Card”? Are credit cards not USED by Chinese people?

The short answer is “unfortunately credit cards are not commonly used by suppliers in China.” The long answer is explained in the following blog posts:

Problems with companies accepting credit cards in China

Can I Buy On Credit from China?

I ALSO have trouble finding one which will take payment through an “Escrow” service.

As a buyer, I wish suppliers in China would get on the Escrow bandwagon. Many large escrow service providers from back home have been trying to set up platforms in China, but with very little success.  The very very small orders can be placed using the escrow services (because the sellers don’t trust it for medium and large orders) provided by the online supplier directories and a few sellers use PayPal. But for the reasons explained in “PayPal? How to Protect Myself as a Buyer?” PayPal isn’t an option for the vast majority of transactions.

BTW, the small sellers may use ali-pay or take credit card or accept pay pal, BUT there are also a lot of small sellers who are scams. So be careful and watch this video: Video 8: Avoiding Scams

 

How is an American “buyer” supposed to have any “security” on a business transaction?

This video series is designed to answer that very question.  The videos in bold should be of particular interest. Video 1: Finding Suppliers Video 2: Evaluating Suppliers Video 3: Negotiations Video 4: Project Management and Quality Control Video 5: Protecting Your Intellectual Property Video 6: Leveraging Global Sources Video 7: How to Find and Manage Partners for Logistics Video 8: Avoiding Scams Video 9: Returning Defective Products Video 10: Resolving a Dispute

The videos above are designed to help buyers who source factory direct. If you are not yet at that level, check out Small Buyers Strategies: Video Tutorials

I was ALREADY “scammed” for $1000.00 which “just had to be” sent through Western Union. After they collected the money, I was NEVER able to contact them again. THAT happened on June 2nd. 

Please watch video #8 above and let me know if the tips suggested would have helped you avoid the 1000 USD loss.  I realize it is too late to help you recover the funds if the seller disappeared, but perhaps you can get some satisfaction by exposing the scam at www.SupplierBlackList.com.  This is a website where buyers list underperforming suppliers. So help other buyers avoid this bad factory by listing them online.

If you would like more tips and tools for dealing with vendors, check out http://www.chinasourcinginfo.org

Thanks again for your questions!

Question answered by Mike Bellamy.

Advisory Board Member & Featured Blogger at the not-for-profit China Sourcing Information Center (www.ChinaSourcingInfo.org). Author of “The Essential Reference Guide to China Sourcing” and founder of PassageMaker Sourcing Solutions.



Mike Bellamy

Advisory Board Member & Featured Blogger at the not-for-profit China Sourcing Information Center (www.ChinaSourcingInfo.org). Author of “The Essential Reference Guide to China Sourcing” and founder of PassageMaker Sourcing Solutions. Mike is co-founder of CSA, the China Sourcing Academy.


2 thoughts on “Safe Payments = Safe Sourcing

  1. AvatarMike

    Sadly, i often hear about that “box of rocks” scam. Happens way too often. I can introduce a private investigator, but that would costs 1000’s of USD and chance of success low if the seller has gone into hiding. Please list them at http://www.SupplierBlacklist.com to help expose this scam and perhaps prevent another buyer from falling into the same trap.

    What could you have done different to be more safe?

    I wonder if due diligence had been done (this kind of DD: http://www.asiabridgelaw.com/due-diligence/) it would have raised a red flag.

    BTW, did you send money to a corporate account or private account? if a corporate account, perhaps the investigators or police could track down the scammer via the bank.

    Wish i had an easy way to help you get your money back.

  2. AvatarDiego Sena

    i get a scam of $150.000 dollars from trading company in tianjin, i go there i see goods pay the advance, i do the loading and put the seals, now conteiners arrives all with small stone, they change the cargo, send me all fakes documents exportations like the BL fike, i came to china to talk with them but desappear, mobile all turn off.
    what i can do?

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