I am new at buying wholesale and I am looking to import from China. From what I have read, there are arguments as to whether certain payment methods are legitimate or not. Can you clarify if a payment method accepted by a supplier is actually an indication of its legitimacy?

To put the record straight, a company’s payments methods do not solely indicates whether that company is legitimate or not. There are some payment methods that do not work; PayPal, escrows, Telegraphic Transfer, etc. are all viable payment options; some, however, are safer to use than others.

Overall, a company’s legitimacy must be based on the authenticity of the products it sells, its customer service policies and procedures, and other professional attributes. To make sure a supplier is legitimate, verify it through other means in addition to payment method.

Can you explain what the best payment methods are and why?

You want to use the payment method that gives you the most insurance in case something goes awry in your business transaction. PayPal is often recommended because you can file a complaint in a worst case scenario. You can also choose to pay through credit card and file a dispute in the same manner if you have problems.

On the other hand, Western Union does not have the same kind of insurance. Although sending money through Western Union is legitimate, they cannot repay you your money if something goes wrong with your transaction. Maybe you do not like the goods you received, or your money gets lost in the post. Any wire transfer service will work this way.