alibaba payment


Alibaba is an international marketplace that serves customers and vendors worldwide. When you place an order in large volumes, prices can reduce drastically. As a result, consumers spend thousands upon thousands of dollars on the marketplace to stock up. However, incidents of fraud and scams pose a threat to internet businesses. 

A secure business transaction is a frequent problem for internet businesses. Customers are likely to be cautious because of the inherent dangers of online business—for instance, fraud and faulty or low-quality products.

Alibaba supports a wide variety of foreign payment methods. Payment options include PayPal, major credit cards, wire transfers, and money orders. Therefore, it is essential to locate a trustworthy mode of payment to guarantee customer safety. If you do, you can avoid dealing with dishonest Chinese vendors and wasting your money.

This article will give you an in-depth guide on Alibaba payment methods.

Making Payments on Alibaba – The Whole Process

alibaba payment -2

Alibaba payment options are simple. Buy a product without going to China. Payment doesn’t require an intermediary, either. Your computer, tablet, or phone can order and pay in minutes.

Contact the suppliers or manufacturers directly. Negotiate pricing and ship products to your location.

Here’s the complete procedure!

Sign in Alibaba Website and Hunt for Products

The first step is to sign up for a free account on To create a profile on the platform, you must enter certain information about yourself. Details such as;

  • First and Last name
  • Current State / Country
  • Home or office address
  • Telephone no
  • Email address
  • A strong password
  • Your trade role (Buyer or seller)

Finding what you’re looking for is the next step. Search for the term “wholesale supplier” and the product name you want to buy.

To achieve this, search for the product’s name. You can also use an image of the product as a search term if you upload an image of the product.

Alibaba can filter your search results to fit your exact requirements. For this purpose, they use filters for things like;

  • Type of supplier
  • Type of product
  • Product Features
  • Minimum Order Quantity (MOQ)
  • Suppliers country

You can get a quote if you still cannot locate the appropriate product. Provide potential vendors with your quote information and watch as they come to you.

Compare Suppliers and Select Accordingly

Alibaba is used by millions of vendors worldwide. However, the certification and verification of a select few make them stand out from the crowd. Among them are:

  • Verifies supplier
  • Gold Supplier
  • Trade Assurance Supplier

Negotiate the Price and MOQ

After selecting a product and source, communicate. If you are unsure about something, ask.

To start a live conversation with the vendor, select “Contact supplier” then “chat now”.

Now is the time to order some product samples before committing to a large order.

Place Payment Order Contact

Purchase orders on Alibaba can be made safely in two steps. A “safe payment order” contract will pop up after you click “buy now” on the product page. The next step is for you to verify the order. The product should already be in your shopping cart, so check the order list.

To locate your order, please visit the “order management” area. Next, select “Pay now”. Pick a payment option and fill out the form. Soon, we will talk about the various ways you can pay.

Confirm the Order

After placing an order successfully, wait till your order arrives.

10 Payment Methods That Are Available With Alibaba

Western Union

Western Union

Western Union is the best way to pay on Alibaba if you are seeking a way to make small payments. You can get your money out quickly and make repeat transfers with ease. But, you are not guaranteed safety as a Western Union buyer. There are no refunds valid here. Additionally, there is no dispute filing or payment cancellation. The money is gone after it has been spent.

a. How Does Western Union Work?

Only residents of the United States are eligible to use the service, and the maximum allowed payment is USD $25,000. Additionally, the US dollar is the only accepted payment currency.

b. Transaction Fees Associated

The Western Union transaction cost is about $30 for domestic transactions, which is excessive. Similarly, each international transfer can cost up to $45.

c. Pros

Due to the low transaction barrier, cash transfers are ideal for dealing with small amounts. However, keep in mind that there could be a transaction fee. 

Some other advantages include the following:

  • Money can be withdrawn quickly once senders have sent it.
  • Repetitive, Easy File Transfers
  • Acceptance on a Global Scale

d. Cons

  • Since Western Union isn’t compatible with the trade assurance program, it leaves the program open to fraud. With this setup, nobody is safe.
  • There’s no guarantee of payment with this method. It puts the consumer at risk of being scammed.
  • No refunds. It is only available for US citizens and doesn’t allow other currencies.
  • While other platforms have e-services, western union requires users to visit their branches. You have to fill out forms that take a while to process.

e. Estimated Processing Time

When compared to other forms of receiving funds, Western Union is the slowest. That’s because submitting your application in person at one of their regional offices is required. The next step in the process won’t happen for another three days.



Despite not having full support from Alibaba, PayPal is one of the most popular payment options. It is possible to use PayPal to make purchases on Alibaba without worrying about security.

a. How Does Paypal Work?

The ‘Goods and Services’ function provides safety for both parties in a transaction. If something goes wrong with your order, you may simply cancel it and get your money back. Over a hundred nations around the globe accept PayPal. The majority of currencies can also be used with it.

Also, PayPal isn’t included in Alibaba’s trade assurance program. That’s because PayPal isn’t accepted as a major payment method on Alibaba.

b. Transaction Fees Associated

To use PayPal, you’ll have to pay an additional 4.5% of the total transaction amount in fees.

Remember that Alibaba will not be responsible for incorrect or non-delivered orders unless you have selected the “Goods and services” option in PayPal.

That the trade assurance plan doesn’t support PayPal says a lot. In a nutshell, Alibaba serves solely as a medium for data transfer.

c. Pros

  • When a buyer selects the option to pay in cash, the funds are quickly deposited into the account provided by the seller.
  • All fees and taxes are the seller’s responsibility (who receives the money). This includes all fees incurred, such as those for shipping and transactions.
  • Similar to Alibaba’s trade assurance service, PayPal offers refunds for faulty or late delivery. In addition, PayPal has a mobile app that allows for quick and easy use. The shopper can complete the purchase at their convenience, day or night.
  • The process of creating a PayPal account is similarly quick and straightforward. Registering may necessitate a working email address.
  • Because it works with a wide range of currencies, PayPal is widely used worldwide. It accepts a wide variety of currencies and serves more than 200 countries.

d. Cons

  • PayPal charges a lot more to transfer money to a standard bank account. Further, the transfer rate may be overcharged, increasing costs for Chinese vendors.
  • The high fees spent during the transfer process put off most Chinese suppliers. And Alibaba doesn’t really back it up. Nonetheless, in recent years they have begun to accept it. They appear to be influenced by PayPal’s security features, encouraging users to make purchases. The experts agree that PayPal is the best option for small business transactions like sample orders.

e. Estimated Processing Time

PayPal’s success can also be attributed to the ease, security, and speed with which money can be sent through the platform.

TT Payments/Wire transfer

In addition to credit cards and PayPal, you can pay for your Alibaba purchases by wire transfer (or TT). Wire transfer is a reliable payment method on Alibaba.

a. How Does TT Payments/Wire Transfer Work?

In fact, it is backed by Alibaba’s trade guarantee program, so you can shop with confidence even when buying from abroad. Therefore, the most common mode of payment for Chinese vendors is a wire transfer.

b. Transaction Fees Associated

Despite its apparent safety, this approach is prohibitively costly. Each purchase will cost you roughly £40 on the site. Fees may be taken out even at the local branch of your bank.

c. Pros

  • Sending money by wire is simple. It’s as simple as visiting a bank and sending funds directly from your account to the seller. Or you can use your phone and online banking facilities to make the transfer.
  • For this type of transaction, Alibaba offers trade assurance. It’s a safeguard for your business transaction.

d. Cons

  • The entire process can take up to seven business days when dealing with foreign transfers. Wow, that’s a very lengthy period. Because of this, productivity is reduced.
  • Typically, a supplier will hold an order until they receive payment. From the time, the buyer signs the payment until the funds are placed into the supplier’s account, the supplier will be subject to changes in the exchange rate.
  • Every purchase you make imposes an extra charge.

e. Estimated Processing Time

Think of it as a gradual payment option as well. For domestic transfers, clearing funds could take one to two business days, while overseas purchases could take anywhere from 3 to 7 business days.



Alibaba’s escrow service is among the platform’s safest payment options. You can use your credit card to purchase with Alipay.

a. How Does Escrow Work?

As a transaction technique, it is among the most secure options for both the buyer and the seller. The buyer’s money is placed in escrow and is not released to the seller until the buyer has received the items.

b. Transaction Fees Associated

Escrow is a trustworthy, low-cost, and risk-free alternative. The entire payment procedure, however, could take longer than expected. Additionally, the standard fee for this service on Alibaba is 5% of the total.

c. Pros

  • The most foolproof and secure method.
  • There is no deception.

d. Cons

  • This only works within China.
  • Prolonged business dealings.

e. Estimated Processing Time

Once the buyer approves, the funds are deposited. In this way, both parties can rest easy. This strategy can only be used inside China.

Credit/Debit Card


It’s a quick and straightforward payment option on Alibaba. Credit/Debit cards also meet the requirements of Alibaba’s trade assurance program.

a. How Does Credit/Debit Card Work?

Input your credit card information there. Next, specify the payment amount and click “pay.”

b. Transaction Fees Associated

That being said, additional fees apply. When using a credit or debit card, there is a 2.95% surcharge. The exchange rates offered by a local bank are likewise susceptible to overcharging.

c. Pros

  • It could take up to two hours to update everything.
  • Alibaba’s trade assurance allows credit and debit card payments. What’s more, this approach has universal support.

d. Cons

  • The vendor is fully aware of all additional costs.
  • Trade assurance from Alibaba does not guarantee complete safety from fraudsters. Even if there isn’t enough money on the card to cover the transaction, the payer will still add it.

e. Estimated Processing Time

It could take up to two hours for the funds to reach the vendor after you make payment. Alibaba also acknowledges all major credit cards like Visa, Mastercard, and American Express. It works with a wide variety of currencies.

Pay Later

Only residents of the United States can use this method. You need to be a US resident or citizen and have an account that has been active for at least a year before you may use these features. It’s important to note that after specific requirements are completed, this buying method is limited to $150,000.

a. How Does Pay Later Work?

One must apply for trade finance to make use of the service. It’s an effective and quick method.

As long as all parties are on the same page, this approach will always be successful. A person receives goods and then makes payments afterward. The buyer is required to make a down payment of at least 30%. The remaining balance is due within 60 days after that.

When a customer is concerned about their security, this comes in helpful. They can get the goods on credit from Kabbage and pay for the loan later.

b. Transaction Fees Associated

The application cost for this fund ranges from 1.25%to 2.75%, depending on some conditions.

You must return the money with the payment as per the refund policy. Depending on what was agreed upon, the plan could take anywhere from one to six months to be implemented.

c. Pros

  • products available for credit.
  • This payment plan gives buyers more time to pay off the balance of their purchase.
  • Ideal for businesses of moderate size.

d. Cons

  • You can only spend up to $1,500,000.
  • There will be other charges.
  • Only available to residents of the United States.

e. Estimated Processing Time

The buyer must make a down payment of 30% of the total price. The buyer has 60 days to make the final payment.

Payment Links

online shopping

Using this method of payment is recommended when purchasing product samples. If you use an Alibaba payment link, you can rest assured that your money will be sent to the correct individual.

Because the payment is made directly to the buyer’s personal Alibaba account, an intermediary cannot steal the money. The seller’s account is also updated quickly.

a. How Do Payment Links Work?

An invoice can be generated and sent from the supplier’s Alibaba account. This invoice establishes a connection that lasts for three days.

This means the shopper needs to act quickly. To clarify, the Payment link system is also available to people outside of China. It can also be used to purchase stuff from other countries.

b. Transaction Fees Associated

To provide a payment connection service, Alibaba will collect a small fee. It all depends on the total amount being exchanged.

c. Pros

  • There is no chance of deception.
  • Worldwide Compatibility.
  • Effective when requesting test samples.

d. Cons

  • The number of people aware of this strategy as a purchaser is extremely low. As a result, you’ll need to enlighten them on the reasoning behind this approach before you can earn a seller’s trust.
  • Estimated Processing Time

e. Estimated Processing Time

The seller’s account will show the change right away.

Online/Bank Transfer

Money transfer

This payment option performs well while handling lots of transactions. This technique is usable on desktops and mobile devices.

a. How Does Online/Bank Transfer Work?

The online transfer is for European people, whereas Pay later is for US citizens. These are the nationals of the countries listed below;

  • Belgium
  • Netherlands
  • United Kingdom
  • Italy
  • Switzerland
  • Poland
  • Spain
  • Germany

b. Transaction Fees Associated

It supports payments in various currencies. However, there are small fees associated with transactions. There is also an extra charge of $15 per transaction.

c. Pros

  • Different currencies can be used for online transfers.
  • Timely and speedy
  • Applications on your computer or mobile device can be used at any time to transmit payments. 1-2 business days are required for processing.

d. Cons

  • Only approved for citizens of Europe
  • Imposes additional fees

e. Estimated Processing Time

The online transfer mechanism is always available. Additionally, the processing period between one and two business days is generally appropriate for major transactions.


A digital check, known as an electronic check, enables the electronic transfer of funds. It is quicker, simpler, less expensive, and more secure. However, there could be a risk of fraud from hackers. Additionally, diminished float and computer issues may occur.

a. Transaction Fees Associated

Each e-check only has a small transaction fee of around $0.10.

b. Pros

  • Quick process time.
  • Authentication at several levels for secure transactions.
  • Low charges.

c. Cons

  • possible fraud dangers
  • Other mistakes or lower floats may occur.

d. Estimated Processing Time

The processing period for an e-check to authenticate your funds is between 24 and 48 hours. Then, it takes 3 to 5 business days to get to the Chinese bank account of your supplier.

Letter of Credit

letter of credit

A letter of credit is a legal document that ensures the vendor will get the full payment immediately. Both buyers and sellers can make secure payments using this approach.

However, there are additional expenses, potential delays, and logistical issues. To be paid, you must abide by the strict conditions.

a. Transaction Fees Associated

The costs associated with a letter of credit range from 0.25% to 2%.

b. Pros

  • Buyer protection for purchasers
  • Secure method to send funds
  • Assurance of payment for sellers

c. Cons

  • High fees
  • Delayed service
  • Non-flexible conditions for sellers

d. Estimated Processing Time

The processing time for the letter of credit payments is two business days.

What Do You Need to Know About Alibaba Payment Methods?

Which is the Safest Way to Pay Alibaba Suppliers?

Payments made through Alibaba Trade Assurance are guaranteed to be processed in a secure and private environment. A sort of escrow service explicitly developed for the Alibaba marketplace.

With this service, Alibaba acts as a neutral third party to store the funds until the transaction is finalized. Before releasing an order, the seller checks to ensure sufficient funds are in the escrow.

In addition, customers who receive a faulty or damaged item can open a case for a refund or replacement. They have the option to cancel at any time and receive a refund. But with a solid justification for doing so.

Which is the Optimum Method for International Money Transfer?

You can use sensible transfer money if you have built confidence and trust with your vendor. Their fees are lower than those of PayPal and similar services. Additionally, the transfer status can be checked online.

Does Alibaba Trade Assurance Work?

trade assurance

In a nutshell, yes, purchasing the Alibaba marketplace is risk-free. There is a strong emphasis on preventing fraud with Alibaba’s trade assurance program. As a buyer, you should be able to navigate the website and avoid potential dangers.

Paying by Alibaba Payment Methods – What Factors Are Crucial?


Before making a transaction with a specific vendor, consider the following factors.

Alibaba Verification Mark

Every Alibaba supplier has been verified. Before contacting a business, it’s a good idea to look them up on the internet and ensure they’re legit. This checks that the suppliers are legitimate and registered with Alibaba.

Asking Relevant Questions

By asking questions, your doubts will be resolved. It’s wise to get answers to your inquiries about the suppliers’ processes and policies before beginning any negotiations. In this manner, you can acquire knowledge about them. Question according to the nature of the seller’s business, the goods and services they offer, the methods of payment they accept, a copy of their license to conduct trade, etc.

So, before you put down any cash, ensure all your questions are answered by talking to the vendors. Examine any suspicious indicators. You can continue the conversation as soon as you are comfortable with the responses.

Inspect Every Sample

In addition to preventing you from falling for a scam, check out samples. They will ensure that you don’t end up with a lousy product. It’s important to always request samples before making a large purchase. Avoid working with vendors who refuse to provide you with a sample.

You can request a sample of the same product from multiple vendors. If you want to succeed in business, you can’t take any chances. You should still test samples even if you’re working with a respectable business.

You will choose the best option after evaluating all the available samples.

Go Through Supplier’s Reviews and Feedback

The feedback of previous customers is a valuable resource for learning more about the vendor under consideration. When using Alibaba, it is common practice for other customers to offer ratings and feedback for the sellers they have dealt with.

Reading the comments provides valuable information about the supplier’s processes, quality of products, communication, etc.

Frequently Asked Questions


Can you Get a Refund From Alibaba If There is a Defective Product?

Yes, you can get your money back if you purchase a faulty item on Alibaba. However, the product must first meet specific requirements before it may be returned for a refund.

You’d better check through the website about the requirements, or you can ask the supplier. If you are still worry about the security of the order, we suggest that you can find an agent like Equator, we are here for help in solving all kinds of importing issues.

Are There Scams with Alibaba Payment Methods?

Yes, and the best way to avoid being scammed is to use one payment method covered by Alibaba’s security plan. Therefore, as it safeguards both parties financially, Alibaba trade assurance is the ideal alternative.

What Are the Best Ways to Pay on Alibaba?

The best option is to use a payment plan backed by Alibaba’s trade assurance. You may rest assured that you will receive support resolving any issues.

Does Alibaba Accept Paypal?

Regarding making purchases on Alibaba, PayPal is not quite as reliable as other Alibaba payment options. Following the footsteps of Alipay. However, this method of payment is not commonly utilized by Alibaba customers. Because the transaction is instant, certain vendors will accept it.


In a nutshell, shopping on Alibaba is quick, simple, and risk-free. Customers should have faith that their product will arrive undamaged and on time. You may confidently shop here.

Choose Alibaba payment methods based on your convenience. If you choose a different way of payment and run into trouble, don’t forget to ask for assistance. If you bring your problem to Alibaba, they will take it on and help you resolve it.

Still, if you are facing hurdles regarding Alibaba Payment Methods, you can always reach Equator where our experts guides will guide to the whole process.

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