With one of my bad dealings with a company in china they said that Visa Card is very hard to use in China. Is his true or was it just another lie that he told me?

What I've been led to believe is that when China opened up the scammers moved in and took them for a ride on credit cards. A lot of Chinese lost their shirts, so they are very wary of dealing with them now. They are slowly creeping back into use for locals, but few will undertake international trade using CCs. I'll bet they're none too happy to see a visiting westerner with a CC instead of hard cash, either, but we'll have to ask greedyboy that when he gets back.

Which also explains why Paypal is not accepted.

so a company can be legit and not take CCs even the big wholesalers/manufactures?

Don't ignore the fact that CCs are a relatively new phenomenon even in the west. International trade was traditionally done on trust, telegraphic transfer and letters of credit.

For international trade, small quantities don't always make sense. I wouldn't import directly for what I need. Just the paperwork time consumed would more than outweigh any potential cost savings. By the time I've paid for carriage for a small amount and so on and so forth, what's the point when the guys bringing in containers and shiploads can break theirs down and sell to me having done all that?

But the quantities they buy are greater in value than you could buy on a credit card. You need another form of money transfer. So the fact is, the bigger the minimum quantities they sell, the less likely they are to take credit cards because they won't take them often enough to make it worthwhile.

I'll explain it.

1. Visa card normally only can pay small amount .

Exporter isn't like a hotel or retailer store, they don't have the POS to accepte credit card payment , and when then payment is big , you can' t use it . Except those who sell onile to public can accept CC . For company, they only has company bank account .

Normal payment is T/T, L/C for international trade.

2. Paypal are not acceptable by most chinese user.

because Chinese government take foreign exchange policy, Every payment should be under control by government. So paypal can't use in China popularly, only paypal.cn can be used within China . The paypal Chinese user withdrawe money is very difficult, it takes 2 months or more , but some can register use a Hongkong credit card, this is better, so few chinese user can accept Paypal. And the withdraw fee in China is very expensive than other countries.

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Last edited by jitverify.com; 13-10-2007 at 04:50 PM.

Originally Posted by denislbg

I'll explain it.


Normal payment is T/T, L/C for international trade.

again excuse my ignorance but what does T/T, L/C stand for also which one is the safest

T/T = Telegraphic Transfer - can be used to transfer very large amounts of money internationally (in fact the costs of TT are so high it would be daft to use it for small amounts).

L/C = Letter of Credit - a guarantee of payment, traditionally issued by the governrnent of the company purchasing, that the seller will get paid. Nowadays more usually covered by financial institutions in the private sector. The buyer and the LC issuer no longer have to be from the same country.

Exporter doesn't like a hotel or retailer store,

An exporter is not like an hotel or retail store, denislbg - you've just said the exporter dislikes the other two Please excuse the correction.

Anotheruser,

yes, you are right, thanks for your correcting. I have done it.

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