How to Pay Chinese Suppliers with a Credit Card?
You may want to buy products from China cheaply. Or you want to start a dropshipping business and source materials from China. In this case, you need to know how to pay your Chinese supplier with a credit card.
If your supplier accepts credit cards and international money transfer fees are affordable, this may be a viable payment method. Otherwise, you'll need to find another payment method, such as a money transfer service or a PayPal account.
We have been sourcing products from China and serving thousands of satisfied customers for ten years. Therefore, we have a good idea of which payment method Chinese companies prefer. We believe we can give you the most accurate answer on this matter.
Now that you have a brief idea of what we're going to discuss today, let's get to the meat of it.
What is a Credit Card?
Credit cards are issued by your bank or financial services company. You can borrow funds using a credit card. By using the funds, you can pay suppliers who accept credit cards.
When Should You Use a Credit Card?
Unlike the day-to-day transactions we do with credit cards, paying Chinese companies with a credit card can be a headache. That's why it's crucial to know when you should use a credit card to transfer money.
A.When the Processing Fee is Low
Only use a credit card as a payment method to pay your Chinese supplier if you are sure that the international transfer fee is low, or you can cover the fee if it is transferred to you.
B.When a Business Accepts Credit Cards As a Form of Payment
Make sure your Chinese supplier accepts credit card payments as credit cards are not popular in China.
C.You Are Sharing Your Credit Card Details with a Trusted Source
Share your details only with legitimate businesses or use some secure eCommerce portals like PayPal to avoid fraudulent sellers.
Features of Credit Cards
When you pay your Chinese suppliers with a credit card, you can get some benefits. Let's check it out.
A. Earn Credit Card Rewards
When you make transactions with your credit card, you can get many benefits such as discounts, exclusive deals, travel deals and more.
B. This Reduces Expenses
In some cases, using a credit card for international transactions can help you save money compared to a debit card.
C. Payment Without a Business Bank Account
If you want to pay your Chinese supplier by credit card, you don't need a bank account and you don't have to pay an initial deposit. Most credit card companies look at your credit score, employment status, and income, and that's all they need to determine if you qualify for credit.
How Does It Work?
Let's see what happens when you pay a Chinese supplier with a credit card.
Step 1: You can use your bank-issued credit card to initiate a bank transfer and pay your supplier. If the transaction is approved, the funds will be delivered to your Chinese supplier.
Step 2: The bank obtains authorization from the credit card network (such as VISA or MasterCard) to process the transaction. It then verifies your information and grants you credit.
Step 3: At the end of the billing cycle, the bank will send you a statement showing your transaction, balance, payment due, and due date. If you pay in full within the grace period, you won't pay any interest charges.
Note: Higher interest may accrue if your credit card provider (bank) treats your transfer as a cash advance. In this case, you will be required to pay the cash advance fee. In this case, you can look for other methods, such as a money transfer company such as Western Union, or use another method, such as a Paypal account.
5 Tips When Paying Chinese Suppliers With Credit Cards
In order to eliminate any hidden fees and minimize expenses, here are a few things you should keep in mind when paying your Chinese suppliers with a credit card.
A. Make Sure Your Bank Doesn't Treat Your Transaction As a Cash Advance.
So before you choose a credit card provider, make sure they don't see your transaction as a cash advance, as you may incur additional fees.
B. aware of Credit and Debit Card Fees.
Before you make any transactions, find out about credit cards, debit cards, and direct bank transfer fees.
C. Find a Money Transfer Specialist.
Professional money transfer companies such as Western Union and MoneyGram allow you to send money to suppliers in China using credit cards. In some cases, they may charge less than your bank.
D. Consider PayPal As a Viable Option.
For overseas money transfers, PayPal is a good option. You can check out their page for conversion and transaction rates. In some cases, they may be lower than your bank.
E. Track Your Purchases.
Keep an eye on your credit card statements to spot and dispute unauthorized transactions.
Q1: What Payment Methods Are Used in China?
3. WeChat Pay
Q2: What Should I Do if There is a Dispute?
If you encounter any of the disputes we mentioned above, the first thing to do is to notify your local bank as soon as possible (preferably within 7 days of the invoice date).
If you notify your credit card issuer of an unauthorized purchase within a certain period of time, you may be able to get a refund.
Another thing you can do is delete your credit card details from websites where you have used the credit card. In serious cases, you may need to freeze your bank account.
Q3: What if I Do Not Have a Bank Account
Even if you don't have a business or personal account, you can issue a credit card if you have a good credit score and a steady source of income.
You can even buy prepaid credit cards from credit card networks like MasterCard.
Q4: Does Alipay Accept International Credit Cards?
According to the latest update of Alipay, you can pay Chinese suppliers with foreign credit cards. You can consider this good news because Alipay is widely accepted in China. Plus, you get all the benefits of a credit card.
Using a credit card will give you a lot in return, and you don't need a bank account. But you need to be on the lookout for disputes like fraudulent charges, billing errors, and more.
You'll also want to make sure the bank doesn't treat your transaction as a cash advance, as this can lead to unnecessary expenses.
You need to compare debit and credit card exchange rates to get the best deal. If you want to avoid international transfer fees, then you need to find other ways.
Have you encountered any other issues with payments? Or, are you looking for the best factory, competitive price, best quality product, payment method with a reasonable exchange rate, etc.? Feel free to contact us for help. RND as a professional Chinese sourcing agent, aim to find profitable products for you from reliable Chinese suppliers, handle your orders properly, deliver goods in a safe and economical way, and provide one-stop shopping for Amazon sellers solution. We make your sourcing and sourcing from China a joy.