Payment methods accepted by suppliers

Safe payment methods that are offered by suppliers and wholesalers include:

• Credit Card: One of the most recommend methods especially on first trades and for sample orders as most credit card companies are able to complete a chargeback if their or you believe their has been fraudulent activity on the credit card.
  
• Paypal : Like credit card this is a recommended payment method as Paypal verify their members address and banking information when they join. They are also required to have a credit card listed on the account making it a stringent process for would be scammers to try and use. We recommend being wary of suppliers who are unverified though as they may not have gone through this process discussed above. It is best to check with Paypal to confirm they are a verified members although most of the time it states this when you are going through the payment process. See http://www.paypal.com for more information on this.
  
• Escrow.com: A safe third party option that holds money in a “trust” account until the buyer receives the goods. Once goods have been cleared by the buyer the money is released to the seller . See http://www.escrow.com for more information on this method.
  
• Letter of Credit (LC): This is similar to an escrow service except you are using your bank as the third party. How does this work? You go to your local bank and request to send a letter of credit for the amount you are wishing to send to the seller. The bank will “hold” this cash in your bank account, and issue a letter to you as well as the seller's bank verifying that they are holding the money. It will then transfer it to the seller's bank account as soon as delivery of the goods to you is confirmed.
  
• Cash on Delivery (COD): You pay the freight or delivery company directly when the goods are delivered to you. The freight company then gives the funds directly to the seller. Please note that the shipping company will not leave the goods with you unless you pay them at time of delivery.

Payment Methods that are NOT recommend by SaleHoo Auto:

We do not recommend using the following payment methods unless you have had prior dealings with a supplier or wholesaler that takes them and everything was fine. These methods have very little security for the buyer and are very hard to trace in the event of a fraudulent transaction. Please err on the side of caution if companies are only allowing these methods, especially for larger transactions.

Western Union: We do not recommending using this method of payment for goods unless you have had prior business deals with a supplier. There is NO security for the sender using Western Union and you are also required to pay fees to send the money. Western Union itself states “Make sure you know to whom you are sending money. If you are purchasing goods or services and paying through the Western Union network, it is your responsibility to verify the reputation and legitimacy of the seller. Western Union is not responsible for the non-receipt or quality of any goods or services."

Telegraphic Transfer/ Wire Transfer (TT): This is an interest method of payment that can float between being a good one to use or a bad one. To start with it has no really safety benefit or security for the buyer. Once the money is wired into another bank account it is very hard to get it back. Saying that, most larger manufacturers use this method and only accept this method of payment for goods. Sometimes they may ask for a 10-20% deposit through bank wire and then the rest is payable on delivery of the goods. We recommend using common sense if a supplier is only willing to use this method. Check out their company and request some references.