Payment disputes are one of the most common problems in international trade. Choosing the right payment method protects both your goods and your money.
Letter of Credit (L/C)
An L/C issued by the buyer's bank guarantees payment once documents are presented. It offers strong protection for sellers but requires careful document preparation and often involves bank fees.
Telegraphic Transfer (T/T)
T/T is fast and simple. Many sellers ask for a 30% deposit and 70% balance against copy of shipping documents. This balances risk for both sides.
Escrow Services
An independent escrow holds the payment and releases it only when both parties fulfil their obligations, ideal for new relationships.
Practical Advice
Never ship without a signed contract. Always verify the buyer's identity and bank details. Be cautious of overpayment scams, and use a trade agent to validate documents if you are unsure.
FuYu Trade provides secure, verified trade channels and document checks to reduce payment risk. Talk to us before your next transaction.
