How to Pay Chinese Suppliers with Western Union?

If you read somewhere that "Using Western Union to pay Chinese suppliers is quick, easy and less expensive" you now want to use this method for your new or old suppliers.

However, you are confused about how to send money to Chinese suppliers through it, what transfer methods it offers, how much it charges, how fast the payment is, whether I will be scammed, etc.

Don't worry! We are a sourcing agency company with 16 years of experience in contacting Chinese suppliers all over the world. In this article, I will answer all your questions.

You can trust us completely as we only offer professional advice that we have experienced.

So without wasting any more time, let me tell you everything you need to know about how Western Union works, why you should use it, and where you should avoid it.

Western Union Pay is just a global money transfer service, just like PayPal and Payoneer. You can use it to transfer money within the same country or another by paying some fees.

WU has been around for a long time; it started sending money in 1871, and Paypal came out in 2000. Western Union's network spans more than 200 countries around the world.

Sending and receiving money via Western Union is quick and easy. If you want to know what methods WU offers, please read below;

For local and international transactions, 2 popular payment methods are available;

- Online transfer of electronic money (by credit or debit card).

- Go in person to a Western Union agent location.

Western Union generates a 10-digit Money Transfer Control Number (MTCN) when you send money by any method. You have to give it to your payee, such as a seller in China, only with this MTCN number can you receive the money.

There are three methods of payment your customers can accept;

- Deposit directly into their bank account. (by entering the MTCN number)

- Access their mobile wallet account, if any. (by entering the MTCN number)

- Can be collected in person at a Western Union branch/agent. (by showing MTCN and valid ID)

In the past, Western Union was the most famous and only widely accepted payment method, which could wire transfer out within 4~5 days. Many other service providers like PayPal, Wise, etc. also entered the market today.

However, Western Union still has a stronghold and is as good as any other service provider with all of the following features:

Track transactions online: Western Union has online tracking, just put your MTCN into it and see where your money is now.

Fewer transfer fees: Western Union's transaction fees are very low at about 0.8%, while its currency conversion fees are high at about 2%, less than 3%. In comparison, PayPal's processing fee is as high as 3.75%+.

Fastest transfers: Western Union has one of the fastest transfer options for local and international payments, such as instant transfers (takes only 10-30 minutes) and next-day transfers (24 hours).

Unbanked: It allows you to send money to people who do not have a bank account. The person can receive the money from any Western Union branch/agent within minutes simply by presenting a valid ID.

Send money with ease: If you're sending money online, the WU app is easy to use. For sending face-to-face payments, it has 525,000 agents worldwide, from big to small cities. In comparison, no other service provider has as many agents worldwide.

One thing to know about Western Union; when you send money to a person and receive it, there is no way to get the money back, like Paypal, Wise, Payoneer, etc.

Therefore, it is very easy to get scammed on Western Union. Always be aware if:

✘ Your Chinese supplier requests that funds be transferred to an account other than the company's account.

✘ You are doing a large transaction for the first time, and your Chinese supplier requires payment by Western Union, especially for large orders.

In both cases above, your seller is most likely a scammer and you will suffer huge losses due to Western Union's lack of funds protection.

But if your old seller asks to send money through WU, that's not a quick reason to call the police, he's probably just trying to save money/time.

Western Union is not a scam site, but scammers mostly use it because of its reputation and lack of financial protection.

Remember to pay suppliers in the company's legitimate business bank account, not in a personal account, so you may have proof in case you are scammed.

Never pay in full. Always only pay a 30% down payment deposit to suppliers, and the rest 70% after production and receipt of proof documents.

If you want to know more about popular payment methods such as L/C, T/T, PayPal, Western Union, or other payment methods, welcome to contact us.

RND is a professional China sourcing agent that can help you with product inspection and complete the shipping and sourcing process. Our quality control and inspection services make sure you have no quality problems when selling. We deliver containers and breakbulk freight to FBA, 3PL or your own warehouse by air, sea or train in the safest and most economical way. If you have any questions after receiving your order, we ensure that all suppliers can respond promptly. Where there is a problem, there is a satisfactory solution.