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The Cheapest And Safest Way To Pay On Alibaba: TransferWise In 2020

Alibaba, just like many e-commerce users, is one of the options I use to find good Chinese suppliers, shops, factories, and resources worldwide to manufacture goods.

And now, I am paying Alibaba for these goods that have been increasing in value up to more than of thousands of dollars, and the payment method has become more important than anything else.
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What's the safest way to pay on Alibaba?

I want to make sure that I use the safest and cheapest service to maximize my money and to protect my rights as a buyer, and Alibaba's Trade Assurance has been a good solution for this. 

Plus it is common knowledge to everyone that the usual payment method used in Alibaba is via PayPal wire transfer (T/T) or by debit or credit card. Though PayPal is one the safest among the three options, especially to handle disputes among the customers, it doesn't however, provide any buyer protection. 

For example, if the goods you received are defective or poor in quality or have arrived several months later than expected, you will still end up covering the processing fee or other expenses.

So, Alibaba came up with a solution to this concern. They have created an escrow service called Trade Assurance, which protects the safety of the buyer/seller transactions. It will hold the funds of the third party until the goods are safely delivered. It also allows the receiving party to open a dispute if it happens to be unsatisfied with the service. 

A great improvement, isn't it?

If your supplier or manufacturers offers Trade Assurance, you should definitely use it since it is free and can secure your money from being compromised given the fact that everything has been clearly laid out in the Purchase Agreement Contract. 

Having Trade Assurance is the safest way to do business on Alibaba. Though problems cannot be avoided, the Purchase Agreement of Trade Assurance makes things a whole lot easier and better.

The Purchase Agreement Contract should have these details regarding these matters:

  • product specifications
  • pricing or unit price
  • payment options or the payment method
  • payment terms
  • manufacturer's or trading company's contact details
  • total cost
  • and more

What's the cheapest way to pay for Alibaba?

A bank wire transfer like TransferWise as a mode of payment is a good option that we have discovered. Though it can be riskier as a way to pay on Alibaba, it can be the best option that could work well with Trade Assurance.

In this way, the money will be sent directly to the third party, which are bank accounts owned by Alibaba. So, you won't be using the manufacturer's or supplier's unrecognizable and doubt banks to transfer money to China. And the money will only be released once the order is already delivered by the supplier or manufacturer.

A bank wire transfer mode of payment can only be completed by going into your bank or through online banking. Make sure to use a bank that has smaller international payments and provides a reasonable exchange rate.

Also, debit cards or credit cards can be used with Trade Assurance, too.

As we have mentioned, PayPal is great but cannot be used in combination with Trade Assurance. It only works best when making small orders where the import tax is free or the protection is worth the fee.

What Is the Best Alternative to PayPal?

TransferWise is the best alternative to PayPal. It is an online payment method service who have banks in several countries worldwide and has reasonable exchange fees for international transactions. It also has the cheapest money transfer service than anyone else.
It is also easy to use for the payment process. Their website will directly show you how much is the total cost that is needed to be paid and of course, with no hidden charges. 

It also gives a comparison to the recent international currency conversions and international exchange rates.
It is also easy to use for the payment process. Their website will directly show you how much is the total cost that is needed to be paid and of course, with no hidden charges. it also gives a comparison to the recent international currency conversions and international exchange rates.

International money transfers or payments from TransferWise are the least expensive (6 times cheaper) compared to other payment methods. When you have to do those money transfers, you will only pay a small amount and all deals are done at the mid-market-rate.And if you set up a borderless multi-currency account in TransferWise, you can simply store your money in several different currencies and then simply send it to China with the correct exchange rates.

And if you set up a borderless multi-currency account in TransferWise, you can simply store your money in several different currencies and then simply send it to China with the correct exchange rates.
send money via tranferwise

How To Send Money on Alibaba Through TransferWise?

To send money from US Dollars to China, follow these steps:

1. Set up an account on Transferwise 

2. Choose an amount to send

3. Enter the recipient's bank details

4. Verify your identity

5. Pay your transfer

And you're done!

I really like Transferwise - so much so that I contacted them about being an affiliate for their transfer services.

If you click on one of my links on this page I will earn a small commission - there is no extra charges to you. This helps me keep my Website going and I would appreciate it.

However if you would rather not click here then thats is fine to. 

Thank you for visiting my site and hopefully you have learnt a few helpful things.
Transferwise Link

Will my bank charge me for using TransferWise?

Yes. According to TransferWise, you will pay a small fee to add money to your balances and convert between currencies in your account. Also, there is a small fee to send money from your TransferWise account to a bank account. And the good thing is, they never inflate the exchange rates and don't charge any fee when opening a TransferWise account.

How much does Alibaba charge per transaction?

Alibaba charges 2.95% of the payment amount for the processing fee. Note that the fee will be automatically deducted from your account when you make a payment, which normally arrives within 1 to 2 hours. 

Supported cards: Visa, MasterCard, Diners, Discover, JCB, American ExpressSupported currency: USD, AUD, CAD, EUR, GBP, JPY, SGD, INR, KRW, MXN, MYR, PHP, RUB, AED, BRL, HKD, ILS, PLN, SAR, THB, ZAR for Visa & Mastercard; USD for balance credit cards.

Payment limit: USD12,000 per transaction

Do I have to pay an import tax from Alibaba?

Imported goods that are under $800 are free from customs duty according to USA customs. However, an import tax is mandatory for any goods amounting to $800 and above.

This is the list of import tax on some products below:

  • Tablet PC: 0%
  • Solar Panels: 0%
  • Electric Bikes: 0%
  • Furniture Products: 1%
  • LED Bulb Lights: 3.9%
  • Wrist Watches: 9.8% + US$1.53 per unit
  • Clothing: 16.5%
  • Peanuts: 131.8%

Can I trust Alibaba's trade assurance?

To make a safe and secure transaction on Alibaba, trade assurance should be your top option. This can help your ordered products protected until it is delivered right next to your doorstep. So, if you place an order and never get the product (or you received a defective one) then Alibaba takes full liability on the issue.

How do I get a refund from Alibaba?

First, you must sign in to Alibaba.com APP and carefully follow these steps:
transferwise refund on alibaba

1. Go To All Orders

Find the order, and then click View More to see the order detail page.
alibaba refund
2. On the order detail page, Click Apply for a refund to open a dispute
step 3
3. Fill the dispute form then click "Submit". Requirements for the evidence: Max. file size: 10MB, Maximum of 5, format: jpg, jpeg, png, gif, zip. Special characters are not acceptable, such as ";"," :”, "-".
step 4
4. After submitting the dispute, please wait for your supplier’s response. Here are some tips for you to handle the case:

a. You could check the disputed status and manage your dispute on the dispute detail page. Please go to the Order Management page, find the order and click 'View refund application' to check the status.

b. You could escalate the case manually and request the Alibaba dispute team to get involved from the 4th day onward or wait for the automatic escalation on the 31st day.

c. Please click here to view the whole dispute process to learn how dispute works on Alibaba.com.

d. As to when the case will be resolved, due to the uncertainty of complaint processing factors, like the responding efficiency by both parties, it's hard to specify when the case will be closed. To end it fast, please cooperate with the dispute agent after escalation.

Final Thoughts

To conclude everything that is written above, make sure to use Alibaba's Trade Assurance to cover any issues and concerns regarding the service and the product. Also, use TransferWise upon receipt of the escrow bank account to save costs in sending money globally.
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