There are several main ways to collect payments in foreign trade, with pros and cons analysis:

1. L/C letter of credit: used by formal large companies and large orders, with a high safety factor, but high cost and complicated operation2. T/T wire transfer: a frequently used foreign trade payment method recently, common for large and small companies, and suitable for personal SOHU. Generally, the payment can be received within 3 days, and the handling fee for each wire transfer is between 15 and 45 US dollars.

As long as the account shows the amount received, there will be no more forks in this book3. Western Union, MoneyGram, etc.: The handling fee is higher, but the payment can be received within 10 minutes, which is convenient and fast, but the monitoring number and the person who performs the information must be exactly the same, which is very strict.

Generally, postal savings offices and branches of the Agricultural Bank of China with the WESTERN UNION brand can handle it. The process is simple and uncomplicated. It is suitable for small-amount orders such as foreign trade prototype orders. 4. PayPal, etc.: The account is quickly received and the handling fee is moderate. However, the handling fee for the payee to withdraw US dollars is very expensive. Each handling fee seems to be 4.5% of the withdrawn amount. Small companies or individual buyers in Europe and the United States prefer to use it. It is similar to our domestic Alipay. Because it involves credit cards and return and refusal to pay, there are certain risks. The payment is shown in your PayPal account, but it does not mean that the money really belongs to you.

Generally suitable for small orders, and companies doing small online sales such as AliExpress will use it. Large companies generally only consider L/C and T/T, and generally do not use Western Union or PayPal. Individual SOHO often uses T/T and Western Union. If the other party has good credit, PAYPAL can also be considered.

L/C requires strict export customs declaration, tax refund and settlement procedures. The process is cumbersome and rigorous, requiring cooperation from different departments, and the cost is very high. T/T payment can be made to both company and personal accounts, but personal accounts are subject to foreign exchange control. Each foreign exchange deposit must be reported, and individuals can only receive a maximum of 50,000 US dollars per year. For reporting issues, asking customers to modify the purpose of remittance can avoid unnecessary trouble. The amount of foreign currency received by Western Union is included in the total amount of foreign exchange received by individuals in the year (US$50,000). As long as the customer provides accurate information such as the monitoring number, the operation is very simple.