what is the paypal fee for sending money to china

Sending money through telegraphic transfer (T/T), or paying past letter of credit (L/C), is slow and relatively complicated.

The wrong casher name, or even accost, tin delay the payment for weeks, and there is no constructive manner to request a refund in case you get scammed by a supplier.

Then, why aren't more importers using payment services such as PayPal, that can transport money instantly to suppliers – while also offering the chance of getting the coin back if the products are not matching the specifications?

Keep reading, and learn why many suppliers refuse to accept PayPal payments, and what you lot can do to alter their heed.

1. Nigh suppliers only accept PayPal payments when ordering product samples

PayPal is available to both businesses and individuals in both Mainland China and Hong Kong. Opening an account only takes minutes, and is as like shooting fish in a barrel as anywhere else on the planet.

Notwithstanding, many Chinese suppliers, both factories and trading companies, don't accept payments via PayPal.

Why is that?

First, it's a matter of old habits.

About suppliers are accepted to the established payment methods, such equally telegraphic transfer and letter of credit – while they are quick to dismiss newer payment methods.

The suppliers that do accept PayPal payments tend to restrict it to sample invoice payments only. As such, near suppliers don't take PayPal payments for larger orders.

2. The transaction fee and currency exchange rate is considerably more expensive (compared to wire transfers)

In that location's a reason why suppliers recall twice before accepting PayPal payments from their overseas customers.

Actually, there are three reasons:

a. The transaction fees are relatively high, normally at around 2.4 to 3.4%

b. The supplier must pay a 2d currency exchange rate fee (2 – 3%), when converting the coin from USD to Chinese Yuan (RMB). While they must pay a currency substitution fee to their banking concern equally well (in case they take payment by T/T), it's lower compared to the one charged by PayPal

c. And terminal, the supplier must pay U.s.a.$35 each time they send money from the PayPal account, to their bank account.

For a transaction of United states of america$thou, or less, the fee only amounts to US$twoscore or 50.

Nevertheless, the fees chop-chop add up, when the society value is counted in the thousands of tens of thousands of dollars.

As a thing of fact, the PayPal fees are frequently higher than the average supplier profit margin.

With this in mind, it's not difficult to understand why suppliers refuse to accept PayPal payments.

If you lot still insist on paying through PayPal, you should accept to cover all transaction and currency commutation fees – counted at around 7% per social club.

3. On the flipside, PayPal offers more protection than wire transfer (T/T) payments

If you lot do a standard wire transfer (T/T) to your supplier, at that place'southward no way you lot can become your money back – unless you take your supplier to court. And win.

There is no way for your bank to lodge a refund from the Chinese supplier, and in that location's no way the supplier's bank can make a forced withdrawal of the funds.

This is not limited to People's republic of china. This is a risk you lot face up regardless of where in the earth your supplier is located.

PayPal, on the other hand, controls both ends of the transaction.

If a supplier sends you damaged or defective products, or no products at all, you lot can open a dispute with the supplier.

If the supplier fails to provide testify to prove that your claim is wrong, PayPal volition review the instance – and motility the funds back to your business relationship.

Hence, PayPal offers an extra layer of security, non offered by the established wire transfer network.

That said, PayPal tin but issue a refund from the suppliers account, if you tin bear witness that your claim is right.

This requires planning, as PayPal cannot make an arbitrary decision.

For example, a refund cannot be based on your perception of skillful quality. Instead, you demand to prove that the supplier failed to transport the correct products.

4. So, how do I make sure that I get the order terms right?

Your supplier tin create a PayPal invoice, and add all necessary information, and fifty-fifty add certificate attachments).

A few examples follow:

a. Provide images that show defects and/ or amercement

b. Add together product data, attachments and guild terms to the invoice (or, well, instruct your supplier to do and so).

PayPal cannot brand a decision based on information outside of their own system. Every bit such, y'all demand to make sure it's all covered on the PayPal invoice.

PayPal may review emails and other documents, but what will happen if your supplier claims that those are fabricated?

I uncertainty that PayPal has the resources to dig that deep into each case.

5. What kind of information practise I need to include on the invoice?

The following must be specified on the invoice, or an attachment to the invoice.

• Product name
• Product description
• Quantity
• Material
• Labels
• Safety standards
• Packaging requirements
• Photos
• Production time
• Shipping terms
• Incoterms

Keep in mind that PayPal was initially created as a payment platform for Ebay auctions, and then evolving into a payment gateway for B2C ecommerce.
PayPal can simply review the supplier'south production listings, and check if the product was delivered – when they resolve disputes.

However, business transactions, especially when involving manufacturers and buyers in unlike countries, are far more complicated.

Hence, PayPal cannot just review a website or check a tracking ID when making a conclusion.

Notice that such terms can only be added to a PayPal invoice. Hence, the supplier must create the invoice inside their PayPal business relationship, rather than requesting a standard transaction, simply based on an email address.

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Source: https://www.chinaimportal.com/blog/paypal-payment-chinese-suppliers/

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