Best 12 Alibaba Payment Methods: Safeguarding Your Transactions

Alibaba is an online business platform widely used by many to sell and buy goods.

A secure business deal is a common problem for any online business. Most buyers are concerned about the risks associated with online businesses. For example, fraud and defective goods.

Many international payment methods are available on Alibaba. For instance, PayPal, credit or debit card, Western Union, and wire transfer (telegraphic transfer or TT).

But, it is crucial to find a reliable payment method to ensure buyer protection. Otherwise, you might face unethical Chinese suppliers and waste money. We’ll share everything about Alibaba payment in this article. Let’s get started.

Is It Safe To Pay On Alibaba?

Best 12 Alibaba Payment Methods

1. T/T Upfront Bank Wire Transfer

There are various Alibaba payment methods available. You can choose the suitable one to send money to China.

The following is a brief introduction to all the payment methods.

T/T Upfront Bank Wire Transfer:

International wire transfer is the most insecure method to pay Chinese suppliers. You must make complete payment before dispatching goods. Its transaction fees usually range from $20-80 per transaction depending on the payment amount and policy of the remitting bank.

Usually, people visit Alibaba platform to find the appropriate Chinese suppliers. Then, they communicate somewhere else. There is no guarantee for both parties unless they have a strong relationship. Therefore, the fraud risks increase for both suppliers and buyers.

You should only use wire transfers (telegraphic transfers) with trustable suppliers. Otherwise, you might lose your money to a scammer. Never send money to the supplier’s personal account. Instead, always ask for a company business account to transfer.


  1. Operate internationally
  2. Easy to transfer money
  3. Low time period
  4. Low charges to transfer funds


  • High risk of fraud
  • Transaction fee

What is the procedure for a bank wire transfer?

Use international wire transfer, you need the following information:

  • Beneficiary Name
  • Complete address
  • Bank account details
  • Bank address
  • Swift code
  • Country

How To Avoid Payment Fraud?

The better way to pay is to use services. To use a bank wire transfer, you must ensure that the beneficiary company is listed on Never make money transfers to a country other than the company belongs. You should also avoid transferring money to a suspicious Chinese account.

For instance, it shows different titles other than the manufacturing company. The supplier might claim that it is the Chinese bank account of his business partner. Someone else might own the account, and the supplier can refuse to accept that payment later on. Even though fintech app development companies are working hard on making your payments secure, scams still happen.

Read more about tt payment.

2. Secure Payment (Escrow Payment)

Alibaba uses Alipay to complete the payment process for a credit or debit card. It is one of the most secure Alibaba international payment methods. This widely accepted method prioritizes buyer satisfaction. Escrow keeps the payment of suppliers until clearance from the buyer side. If the buyer rejects the low-quality goods, he must provide sufficient proof.

This method helps reduce the risks due to a long time between goods ordering and receiving. It ensures the buyer’s security and supplier’s payment assurance. Escrow is normally used for transactions within China. Its acceptance is low for international transactions.

How Does It Work?

After finalizing the deal, log in to the business account in Then, enter all the required transaction information. For example, the contact number, email IC, inspection time, and currency. Next, proceed with the international payments at It will hold the payment till goods acceptance by you.

What Are The Payment Options In Escrow.Com? uses multiple methods for money transfers from buyers. It accepts payments via bank transfer, international credit card, and check. You can also via PayPal payments or money orders. After accepting the payment, uploads it to the website. It ensures the safety of payment to the supplier. These funds are released after shipment, receipt, and acceptance by the buyer.


  1. Trustable
  2. Low-cost
  3. Security for both parties


  • Lengthy process
  • Transaction fee

How To Use Debit/Credit Cards In Escrow.Com?

You can pay with international credit or debit cards. Just create an escrow account and enter all the information about the deal. You should also know about the electronic money regulations. It only accepts MasterCard, American Express, PayPal, and Visa Card payments. Stock must be delivered to the confirmed address.

Credit/debit card payments are protected using SSL technology. The information is encrypted to ensure the security of information. Credit/debit card payment requires additional fees. You can’t make the payment of more than $5,000 unless approves it. A credit/debit card requires three working days to update the payment into the bank account.

Read more about Alibaba Escrow Payment.

3. Alibaba Payment Links

Alibaba platform helps complete the payment system in simple steps. Buyers mostly use the Alibaba payment system for small transactions. You can use it for larger transactions or sampling payments. It allows the supplier to generate the invoice from its Alibaba account. Buyers need to complete the payment within a specific time.

This method is widely accepted in Mainland China and all over the world. When buyers and sellers are not familiar with each other, the Alibaba escrow service can coordinate bilateral transactions and lower the risks of online fraud.


  1. Ensure The Payment To Right Person
  2. Low Transfer Fee
  3. Instant Update


  • Low security
  • Transaction fee

Read more about Alibaba Payment Links.

4. Alibaba Pay Later

US importers can apply for simple and trade finance. This option allows a real-time deal and payment later. Funds received from trade finance are used to place orders to any supplier listed on Importers can gain the maximum fund of $150,000 after completing certain conditions.

Furthermore, you must refund the amount per the described payment refund plan. Alibaba Pay Later allows a small down payment upon order. You’ll need to pay the balance payments within 60 days of product shipment.

Alibaba Pay Later is not available to everyone. But, you can send money to China via this facility if you fulfill the following criteria. The company must be registered on for at least one year. If the registration period is less than that, it is not available for you. You must be a nationality holder of the US. Or, you must live in the US as a permanent resident if you belong to another country.


  1. It strengthens and simplifies the payment.
  2. It makes global commerce businesses easier and simpler.
  3. Improves the cash flow for SMB customers.


  • It’s not easy to pass the load application.
  • Transaction fee

Read more about Alibaba Pay Later.

5. Alibaba Online Transfer

Alibaba has funds support for US importers but not importers from other countries. Yet, it launches some other useful features for importers from Europe. facilitates European importers with online transfer. It is a simple and quick payment gateway. You can send money to China in Chinese Yuan from a different currency.

If you are a resident of any country below, you can use it to transfer:

  • United Kingdom
  • Ireland
  • Netherlands
  • Finland
  • Switzerland
  • Estonia
  • Germany
  • Spain
  • Italy
  • Poland
  • Belgium

Transfer Fee

This service is very beneficial to send money to China, but not free of cost. You have to pay the fees per the fee chart designed by Although these are nominal charges, you have to pay to use this service.

Let’s take a look at the transfer charges:

Total Deal Amount | Transfer Fees (in US Dollars) $0 to $1,000 | $15 $1,001 to $10,000 | $20 $10,001 & above | $25

Processing time: The Alibaba transfer generally takes about 1 – 2 business days.

6. PayPal

Is PayPal has a secure payment service? PayPal is a famous electronic money institution to transfers funds. It is simple, secure, and can transfer instantly.

You can consider paying Chinese trade assurance suppliers with Paypal accounts. Alibaba does not officially support Paypal. But, it offers a “Goods and Services” option for business deals. Buyers need to bear 4-5% charges from their Paypal balance in their Paypal accounts.

You can cancel the transaction for delivery or specifications problems to get back your money. A Paypal account is useful to make payments to the bank account of a new supplier. You can switch to another low-cost method with trustable suppliers.

How Does Paypal Work?

To send money through PayPal, enter contact number, email id, and payment amount. Then, click the send button. Paypal offers a new feature for business transactions. It provides a refund option for goods that do not match the specifications. You’ll need to provide sufficient evidence against the supplier for refunds.


  1. Accepted worldwide
  2. Protection against fraudulent activities
  3. Multiple options to deposit electronic money in account through credit/debit card
  4. A quick way to pay online
  5. No extra charges for suppliers


  • High charges and currency conversion fees on the transaction
  • Transaction fee

Tip: Inform the supplier during negotiation if you plan to pay with your account. There are chances to transfer the burden of the charge to the supplier. You can also prevent the risk of refusal from the supplier during payment.

Read more about Paypal on Alibaba.

7. Alibaba Trade Assurance introduces a trade assurance service to facilitate both supplier and buyer. You can transfer directly to the Chinese bank account of This bank is based in Singapore. All the funds remain in this account until the shipment reaches you. It ensures the quality of goods and timely delivery.

How Does Trade Assurance Work?

The trade assurance helps the buyers to get a refund if:

  • The goods supplied are not as per specifications
  • The goods are not delivered on time

You have to follow the instructions below to send money to China via this method:

  • Make a deal with trade assurance suppliers only
  • Make secure payment through the suggested platform of
  • Provide complete order specifications in terms of quality and quantity
  • Arrange a pre-shipment inspection.

Trade assurance supplier: gold suppliers who accept payment through, enabling Alibaba payment and order protection.

In case of any dispute, arranges for a third party to inspect the goods. If the goods delivered do not fulfill the criteria, the buyer will get a refund.


  1. Doesn’t charge extra fees
  2. Complete refund option
  3. Buyer satisfaction


  • Lengthy process
  • Transaction fee

Read more about Alibaba Trade Assurance.

8. Western Union Alibaba

Western Union is one of the most reliable money transfer providers. It allows quick money withdrawal and simple repeat transfers. But, Western Union charges higher than mid-market rate. Some Western Union users also experienced wrong foreign currency exchanges.

Western Union processes within minutes for mobile wallets and regular transfers.


  1. Can withdraw money fast after senders send money
  2. Simple repeat transfers
  3. Universal acceptance


  1. Poor exchange rate
  2. Poor customer service
  3. Wrong currency exchange fees

Transaction fee: You’ll incur transaction fees of about $30 to $50 to send money internationally.

Processing time: Only account-based transfers take about 5 business days to process.

Read more about Western Union Alibaba.

9. Alibaba Credit Card

Alibaba credit cards are a useful tool to send money to China. Global users use it to finance many items for personal or business use. But, you’ll incur more debts, and your credit score will drop due to late payments. Also, skilled thieves can hack and use your card. However, keep in mind that there is a maximum transaction amount for orders paid via credit card.


  1. Convenient for withdrawing and sending money
  2. Allow paying off afterward
  3. Low introductory fees


  1. Lower future incomes
  2. Heavy compound interests
  3. High fraud risks
  4. Higher transaction fee

Transaction fee: Credit card companies charge 1.3% – 3.5% per transaction, plus certain exchange rate.

Processing time: In general, it takes about 24 to 72 hours to process your payments.

Read more about Alibaba Credit Card.

10. e-Checking

An electronic check is a digital check that allows sending money electronically. It is faster, easier, cheaper, and more secure. But, there might be fraud risks by hackers. You might also face computer errors and reduced float.


  1. Fast processing time
  2. Secure transactions with multiple level authentication
  3. Lower costs


  1. Potential fraud risks
  2. Possible reduced float or other errors

Transaction fee: The transaction charges for each e-check are only about $0.10.

Processing time: E-check takes about 24 to 48 hours processing time to verify your funds. Then, it takes 3 – 5 business days to reach your supplier’s Chinese account.

11. Letter of Credit (L/C)

A Letter of Credit (L/C) is a legal document that ensures timely and complete payment to the seller. It serves as a secure payment method benefiting both exporters and buyers. However, there are associated drawbacks, including additional fees, potential delays, and administrative complexities. Adherence to strict terms is essential to receive payment.


  1. Provides payment assurance to sellers.
  2. Offers buyer protection.
  3. Ensures secure payment for transactions to China.


  1. Involves higher costs.
  2. May lead to possible delays and administrative issues.
  3. Requires strict compliance with terms for sellers.

Transaction fee: L/C charges typically range from 0.25% to 2%, depending on various factors.

Processing time: Expect a processing time of approximately two business days for Letter of Credit (L/C) payments.

12. Boleto

Boleto is an official payment method overseen by the Central Bank of Brazil. Unlike cards or bank accounts, it employs vouchers to transfer money to China. Boleto offers payment options through a post office, ATM, or online transfer. However, it’s important to note the potential for delays, and it’s worth mentioning that only 50% of issued Boleto payments are fulfilled.

Boleto can only be utilized by accounts set up in Brazil or for buyers with delivery addresses in Brazil, and the supported currency is USD.


  1. Offers a low-interest rate.
  2. Provides convenience in payment.
  3. Reduces the risk of fraud.


  1. Possible delays.
  2. Potential payment failure.

Transaction fee: Boleto typically charges about 1.3% in transaction fees per transaction.

Processing time: In general, it takes 3-4 days to process your payments when using Boleto.


Q1: Which Alibaba payment method is the safest for international transactions?

A1: The safest Alibaba payment method for international transactions is often considered to be Alibaba Trade Assurance. It offers a high level of protection for both buyers and sellers. With this method, funds are held in a secure account until the buyer confirms receipt and satisfaction with the goods. This minimizes the risk of fraudulent transactions and ensures that you receive what you’ve paid for.

Q2: Are there any extra fees associated with Alibaba payment methods?

A2: Yes, there can be extra fees associated with Alibaba payment methods. The fees vary depending on the specific payment method you choose. For example, some methods may have transaction fees, currency conversion fees, or service charges. It’s essential to carefully review the terms and conditions of your chosen payment method to understand the fees involved.

Q3: How long does it take for a payment to be processed on Alibaba?

A3: The processing time for payments on Alibaba can vary depending on the payment method you select. Some methods, like PayPal, offer instant transfers, while others, such as Alibaba Trade Assurance, may take a bit longer due to verification and inspection processes. It’s a good practice to check the processing times associated with your chosen payment method when making a transaction.

Q4: Can I change my payment method after confirming a transaction?

A4: In most cases, it’s not advisable to change your payment method after confirming a transaction on Alibaba. Once a payment is confirmed, it’s binding. However, if you encounter any issues or need to make changes, it’s best to communicate directly with the seller and, if necessary, contact Alibaba’s customer support to explore potential solutions.

Q5: What should I do if I suspect a fraudulent transaction on Alibaba?

A5: If you suspect a fraudulent transaction on Alibaba, here are some steps to take:

  • Contact the Seller: Reach out to the seller to address your concerns and seek a resolution.
  • Use Alibaba’s Dispute Resolution: If the issue persists, you can open a dispute through Alibaba’s platform. This process allows for mediation and can help resolve disputes.
  • Review the Payment Method: Check the terms and conditions of the payment method you used to see if there are any protections or dispute resolution processes in place.
  • Report to Alibaba: If all else fails, report the issue to Alibaba’s customer support for further assistance. They can investigate and take appropriate actions.

Remember, staying vigilant and conducting due diligence when making transactions on Alibaba is crucial in preventing fraudulent activities.

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