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Top 8 Alibaba Payment Methods in 2022

Top 8 Alibaba Payment Methods for 2022-2023. Are they Secure?

Top 8 Alibaba Payment Methods in 2022

We have all heard about the scams to avoid, but it is a fact that even after being aware of these scams, many people still get caught in them. When it comes to eCommerce platforms, there is one that tops the list – Alibaba. It is a secure online marketplace that provides a huge variety of products and services for sale.

Still, some scammers manage to find a way to trick you and snatch away all your hard-earned money without delivering the products you ordered. So how to avoid such scams on Alibaba? What are the best Alibaba payment methods you should choose?

We’ll answer all these and related questions in this blog. We’ll tell you the latest payment methods on Alibaba and their security level. Plus, we’ll guide how to avoid scams while buying products on Alibaba.

So, let’s dig into it straight away.

Chapter 1. Overview of Alibaba and its Payment Methods

Alibaba is one of the reputed online selling companies operating in China. It connects merchants and consumers from all over the world and provides them with excellent trading services to ensure the protection of their products.

If you are new to the platform and worry about whether it is reliable to buy products and pay suppliers— don’t worry. We’ll explain everything in detail, but before we do, let’s understand the basics of the platform.

1) What is Alibaba? An Overview

website of Alibaba

To be precise, Alibaba is an online shopping platform and an e-commerce website. It is a renowned B2B marketplace where suppliers and consumers interact and perform transactions from all across the globe.

As one of the world’s largest e-commerce companies, Alibaba generated a whopping annual revenue of $134.567 billion in 2022—according to a recent report by Macrotrends.

A Chinese business entrepreneur and investor, Jack Ma, is Alibaba’s co-founder and former CEO. He introduced this online shopping platform on April 4, 1999, with a team of 18 people.

2) How can you Pay on Alibaba?

a person is paying on Alibaba

It is not difficult at all to pay on Alibaba. The popular wholesale marketplace has its own fully secured payment system. So, it encourages sellers and buyers to use its protected payment system, i.e., Alibaba Escrow Service.

Alibaba Escrow Service is the safest payment service that provides secured deposits and keeps scammers away. Moreover, it is convenient to use and free for customers.

However, Alibaba also offers various other reasonable payment options for buyers. It allows you to make payments via the following payment methods;

  • International Wire Transfer or TT (Telegraphic Transfer)
  • PayPal
  • Debit/Credit Cards
  • Western Union
  • Alibaba Payment Links
  • Alibaba Pay Later
  • Online Transfer

And more… We will discuss all major Alibaba payment options later in our article. So keep reading!

3) Are Alibaba Payment Methods Secure?

Such a question always pops up in a buyer’s mind when you think of sourcing and purchasing products from China via Alibaba. As a buyer, this question might be bothering you deep inside whether your payment is safe or not.

But, you need not worry about this because Alibaba has introduced a free service to ensure safe transactions, i.e., Alibaba Trade Assurance. It is a built-in protection service that creates trust between consumers and traders by securing their transactions payments.


Chapter 2. How does the Payment Process on Alibaba Work?

Many people call Alibaba the Chinese version of Amazon, but the exciting fact is that Alibaba is surging ahead of Amazon. Alibaba is the largest B2B market operating in China and works with businesses worldwide. In fact, it has stated a benchmark in the world of e-commerce.

Do you know this B2B market serves every brand and business? You will get every type of product looking for unless it is illegal. It’s the sole reason thousands of sellers globally connect to Alibaba for millions of products.

All you have to do is navigate your niche product, select your quantity and add it to your cart. Simply pay the supplier and get your delivery to the desired location.

Is it your first time trading on Alibaba? Are you not aware of the Alibaba payment methods? Don’t worry; we’ve got your back. Coming up next, we’ll uncover the entire payment process of Alibaba in detail. So check it out now.

6 Easy Steps to Pay on Alibaba


As mentioned above, Alibaba is the biggest online wholesale market in China, offering a diverse range of products. The products available on Alibaba come in quantities that cater to various businesses. So if you want to make a purchase, don’t hesitate to do it.

There are multiple sellers for a single product, so it’s ideal for buyers to connect with them all and close the deal with the most favorable seller. However, a problem arises when you don’t know the payment criteria and get scammed.

There are two ways to do the payment process. One way is to contact the seller outside the platform and negotiate the price. This way is legitimate but risky to do. The second way is to pay via a buyer account on Alibaba. We suggest you adopt this way as it is risk-free and more reliable.

Here are the 6 stages of paying the seller on Alibaba.

Step #01: Create an Account on Alibaba

creating an account on Alibaba

The most reliable way to make payments on Alibaba is by creating an account. Whether you are a seller or buyer, an account is mandatory to have for making international transactions. Do you know why? This way keeps a track record of your transaction history between you and your supplier.

Here are the following details required to create an account on Alibaba,

  • Your official full name issued on your ID
  • Name the country you belong to
  • Your residential/business address
  • Your official contact number
  • State your role as either Seller or Buyer
  • Your official e-mail address
  • Password to your e-mail ID

Once you successfully inserted all the personal details, you’ll be officially enlisted in the trader list of Alibaba.

Step #02: Find High-Quality Products


The next step to trading on Alibaba is hunting your niche products. As stated, Alibaba is an online wholesale market that offers a diverse range of products by various sellers. The best way to find your product is by using the search bar. You’ll find a search bar on your screen; click and type your relevant product.

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Multiple ranges of related products will appear on your screen. For more convenience, Alibaba offers a filter option to meet your exact specifications. Mark your filter by product type, price, quantity, and sellers.

Now how would you know the location of your seller? Each seller account has a flag logo tagged on their IDs displaying their country. This helps a significant role for buyers in landing their ideal seller. However, if you fail to find your relevant product, you can request a quote to have potential sellers reach out to you.

Step #03: Find Suitable Suppliers and Compare their Pricing

Alibaba is significantly better than Amazon and has the most extensive online wholesale market, but it also has some red flags. Buyers spend thousands of dollars on Alibaba for trading, and investing with the ideal supplier is imperative. If you’re just starting, dealing with the right supplier is extremely important.

But how do you find the right supplier?

As we discussed above, multiple suppliers on Alibaba are dealing with each product. This gives an excellent opportunity for buyers to compare their offers with other sellers. Get a quote from several suppliers and see which is suitable for you. Once you find a favorable deal, this is where you have to negotiate.

Note: Make sure your expected supplier is legitimate, and to ensure that, check out his previous business history. Buyers, after purchasing, share their experience with a seller in the form of feedback. Read them out, and contact a few of them to know more about the seller. As it is said, a past customer tells more about the seller than the seller himself.

Do you want to source high-quality products from China? Don’t know much about Chinese marketplaces? No worries! You can easily reach out to our Sales Manager and schedule a free consultation with her. She will assist you with all of your concerns and make the process as simple as possible for you.


Step #04: Negotiate Pricing Terms with Seller

Once you land on your ideal seller account, it’s time to initiate the communication. Click “Chat Now” to inquire about the product and shipment procedure. Ask the seller about the product price and try to negotiate over it. Some sellers offer special discounts on fixed MOQ (Minimum Order Quantity); check out and ask for it.

If you’re dealing with the supplier for the first time, you should ask for paid samples to inspect the product’s quality. Once you’re satisfied with everything, it’s time to move forward!

Step #05: Place an Order using Alibaba’s Secured Payment Method

placing an order on online platform infographicsThe payment method is the closing point of your deal. Upon negotiating terms and procedures, it’s time to place your order using a secured payment method. Ideally, there are two steps for creating an order.

Buy Now

On the product page, there’s an option “Buy Now.” You’ll be entered into a contract regarding all purchases as soon you click on it. Check out all the products added to the cart before clicking “Ok.”

Order Management

Order management helps you give detailed information about your order. Check it out thoroughly before clicking “Pay Now.”

Here are some of the payment methods (we will discuss them all in the upcoming chapter)

  • PayPal
  • Online Transfer
  • Debit or Credit Card
  • Western Union
  • Wire transfer (Telegraphic Transfer or TT)
  • Alibaba Pay Later
  • Alibaba Escrow Service
  • Alibaba Payment Links

Step #06: Receive your Products

All the formalities have been completed successfully, and now it’s time to do some business. The seller will ship your order to the given location. Make sure to inquire about receiving date. Well, you can also track your shipment via code to know the exact route location.

Receive your products and make sure to check the quantity mentioned by the seller.

Chapter 3. Top 8 Alibaba Payment Methods you must Know in 2022

alibaba payment methods

In the previous chapter, we discussed the payment process on Alibaba. As you’ve learned about the complete criteria earlier, it’s time to choose your payment method. The payment method is the most crucial stage in e-commerce. You purchase hundreds of products against thousands of dollars, which is extremely important to bring on record.

And that is possible by using an accurate payment method. Therefore, we will discuss the top 8 Alibaba payment options which are secure for your purchase. We suggest you sit back and check out each one of them carefully. By the end, you’ll be able to pick one payment source for your online business deals.

Payment Method #01: PayPal


The number one Alibaba payment method we have on our list is PayPal. PayPal is one of the most used methods for international transactions globally. Over 100 countries use PayPal as their official global transaction method, and you probably would have heard about it.

If you have a PayPal account, it’s a bonus. You can use your PayPal account for payments on Alibaba. Although Alibaba does not support PayPal, you can take full of it using its “Goods and Services” feature. PayPal has brought this feature for traders, and it’s worth everything.

  • Do you know what the best thing about PayPal is? You can terminate the transaction anytime upon facing trouble. This has helped a lot of businesses from facing unnecessary losses.
  • The payment process is quick, and you can do it all by your laptop, tablet, or mobile phone.
  • Alibaba’s assurance does not cover PayPal which is the only drawback.

Payment Method #02: Online Transfer

The second method we have on our list is Online Transfer. Online Transfer is also a suitable option for the European citizen. Some payment modes like Pay Later are limited to the USA only. So if you are residing in Europe anywhere such as,

  • Spain
  • Belgium
  • United Kingdom
  • Poland
  • Switzerland
  • Germany
  • Netherlands or others.

Then you can make a direct online transfer to the supplier account.

The procedure of online transfer is quite relevant and preferable for some buyers. Payment clearance takes 1-2 business days and incurs nearly $15 per transaction.

  • Quick processing
  • Multiple currency operation
  • Easy navigation
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  • Its limited service to European countries is the only disadvantage.

Payment Method #03: Debit or Credit Card

debit or credit card payment

Let’s talk about the most common source of making international transactions―debit and credit cards. Alibaba fully supports payment transactions made by debit or credit card and is fully covered under its assurance policy.

This payment method on Alibaba is for everyone, regardless of where they live. All you have to do is select the credit/debit card payment option on Alibaba. Insert the amount and your card number. Confirm the pin code, and the funds will be transferred into your account.

This payment method is available 24/7; however, it takes 1-2 hours for completion.

It is the fastest and globally accepted mode of transaction. Moreover, it keeps a track record of all your transaction history in the form of bank statements.

  • Worldwide accepted
  • Easy to use
  • Available 24/7
  • Costs 2.95% additional charges of the total amount on every transaction.
  • It does not have complete control over scams and frauds.

Payment Method #04: Western Union

western union

Do you want to make a small payment on Alibaba? Then, Western Union is your go-to payment method for it. As we all know, Western Union has been making global transactions for years hence nothing is more reliable than it.

With modern upgrades, Western Union can be used as a way of payment against commodities bought on Alibaba. It has a global network worldwide, and anyone can make a payment anytime, anywhere. Western Union is ideal if you want to get a sample from Alibaba.

Some critical notes should be considered before using Western Union. The payment process on Alibaba is more complex and lengthy than others. This is because users have to make an official visit to their branches and then fill out the given form.

Transferring funds through Western Union takes around 3 business days, which could cause an unintentional delay.

Similarly, there’s no refund option; once the transaction is made, the funds are gone, and there’s no coming back. In case of fraud or any other mishap, the sources do not offer any remedy.

But if all you want to make is a small transaction, then Western Union is the best-case scenario for your business.

  • Trusted source
  • Globally renowned
  • Easy to use
  • Takes time
  • Not recovered by Alibaba

Payment Method #05: Wire transfer (Telegraphic Transfer or TT)

The following method we have on the list is Wire Transfer, also known as TT (Telegraphic Transfer.) Wire Transfer is a standard payment method by Chinese vendors, and that’s why Alibaba fully supports this system. It is one of the easiest payment methods on Alibaba.

The procedure is as simple as well and is channelized through local banks’ e-banking services. A user has to pay the funds in the supplier’s account, and it’s done.

You must remember that the transactions for wire transfer take a little longer than others, which could create hurdles in your business activities. It takes 1-3 days for a local transaction and 7 business days for internationals.

This could cause a delay in your shipment arrival as most of the suppliers dispatches the order on payment clearance. Similarly, the standard currency is in pounds which could also be disturbed due to fluctuations in the exchange rate.

The transaction charges are also higher despite slow services. Wire Transfer charges ₤40 per transaction, which is expensive. But the good thing is Alibaba’s assurance scheme fully supports this method and offers recovery.

Payment Method #06: Alibaba Pay Later

If you want products on credit, this is the best way to pay on Alibaba. It’s a fully registered payment method supported for native US citizens. This method is for you if you live in the US and want to get products from Alibaba on credit.

The whole process is based on mutual settlements between both parties. The process works on an agreement registered by Alibaba, which means you have the assurance.

According to this method, the buyer must pay 30% of the total amount immediately and clear the remaining amount in 60 days. This creates an opportunity for a buyer to get a lucrative timeframe for remaining settlements.


The best thing about this payment method is,

  • Buyers get products on credit
  • Favorable for small enterprises
  • 60 days to clear payment
  • Only for US citizens
  • External charges

Payment Method #07: Alibaba Escrow Service


Is it your first time buying products on Alibaba? Are you conscious of the safe side? Then Alibaba Escrow Service is best for you. So far, this is the safest payment method on Alibaba. This payment method was introduced to ensure maximum safety for both buyers and sellers.

Here’s how it works,

After finalizing terms between both parties, the buyer deposits the total decided amount. On the other hand, the seller cannot withdraw the amount until the complete delivery of the products. As soon as both parties are satisfied with each other, the buyer can allow the funds to be transferred.

The slow process charges 5% of the total services, but it’s worth it for a safe play.

  • Safer for both buyers and sellers
  • Fully supported by Alibaba
  • No scams or frauds
  • A lengthy process
  • Only Chinese citizens

Payment Method #08: Alibaba Payment Links

Here we have the last payment method on Alibaba. This payment method is ideal for ordering product samples. Using Alibaba payment links ensures that the payment reaches the intended recipient. This is due to the funds being transferred to the individual Alibaba account. There is no third party in the way to divert the funds. Furthermore, the funds are instantly updated on the seller’s profile.

The process is smooth! The supplier can generate an invoice from their Alibaba account. This invoice creates a link with a three-day validity period. As a result, the buyer must act quickly when making purchases. Individuals in China are not the only ones who can use the Payment Link system. You can also use it to make international purchases.

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  • Ideal for ordering samples
  • Globally accepted
  • No additional charges
  • It’s rare, and buyers have to gain trust for it

Chapter 4. How to Safely Pay on Alibaba? Top 4 Ways

How to Safely Pay on Alibaba?

Every user must understand the right and appropriate strategy for making payments on Alibaba. We recommend you go through Alibaba Trade Assurance for safe transactions and to prevent online scams.

To answer your query, we have listed the best four ways to pay on Alibaba safely. Here are the top 4 ways to ensure safe payments on Alibaba;

1) Check Supplier Verification on Alibaba.

Checking supplier verification is the first and foremost step to ensure safe payments on Alibaba. You must check the verification status of the suppliers before connecting with them. The process will help you find a verified Alibaba supplier and protect your payment from scammers.

How to check supplier verification?

You can quickly check the verification status of the suppliers on Alibaba by visiting their profiles. The verification tag on the suppliers’ profiles guarantees their legal registration with Alibaba. The buyers can also see their verification tag on the product pages and marketplace search results.

2) Asking Questions to Clear up your Doubts.

Questioning is the best way to stir the imagination and drive clear ideas about anything. It allows a person to uncover the challenges and clear up the uncertainties. Moreover, questioning enables you to understand the temperament and character of the one you are questioning.

You can question them about their business company, products, and the applicable mode of payments they accept. You can also ask them to show their vendor license or permission letter.

Therefore, holding a questioning session with the suppliers is crucial. This way, you will better understand their personality and nature. You can proceed to pay them once you have cleared your doubts and ensured your satisfaction.

3) Ask for Sample Products.

sample products

Product sample checking is the next step to safely pay and protect your payments to the suppliers on Alibaba. The samples will help you recognize whether the products you purchase are worth the money. It also allows you to ensure the quality of the goods through their model pieces.

Asking your sellers for the sample products also makes them realize your attention and seriousness towards the deal. However, if a trader does not agree to provide the product samples, do not engage in any agreement with him.

On receiving the samples, compare them with the product samples from other suppliers and decide the best among them.

4) Check the Suppliers’ Ratings & Feedback.


We all know that Alibaba provides feedback and rating functions for buyers. Using that function, the consumers and purchasers leave product feedback they get and rate their suppliers. Such feedback and ratings can help other buyers in many ways.

Going through the product ratings and customer feedback is the best technique to acknowledge the quality of the products. The feedbacks also reflect the attitude of suppliers towards the buyers.

So, this method will help you find a reliable and trustworthy supplier who provides state-of-the-art products and values you as a buyer.

Chapter 5. FAQs about Alibaba Payment Methods


Several questions might be circulating in your mind related to the payment methods on Alibaba. But it should not be a thing to bother you. We have written down some of the frequently asked questions about Alibaba payment methods that might be helpful for you.

So, let’s read them.

1) What is the safest way to pay on Alibaba?

Alibaba Trade Assurance is the safest and most guarded way to pay on the Alibaba e-commerce marketplace. It is an insurance service that safely covers all transactions and supports many payment methods. The trade assurance service handles and controls disputes if a customer receives a defective or damaged product.

2) What is the best method to transfer money internationally?

Alibaba allows you to use your Visa card, MasterCard, and American Express for international money transfers. However, Wise offers the best and cheapest method to pay Alibaba suppliers worldwide. You can safely make international payments through Wise Debit Mastercard with low fee than PayPal and other payment options.

3) How to handle scams while paying on Alibaba?

You can select the Alibaba Payment System or Escrow service to avoid scams and fraud while paying on Alibaba. Alibaba Trade Assurance is an escrow service designed by the company to handle scams and disputes. Your investment or the money you pay remains in escrow until the deal goes well without any disagreement.

However, this might not be enough to handle scams on Alibaba. You also need to check suppliers’ verification, product ratings, and customer feedback.

4) Is PayPal accepted by Chinese suppliers on Alibaba?

Alibaba does not officially support PayPal as a reliable payment method. But, some Chinese suppliers accept this mode of payment on customers’ demand. So you can talk to your suppliers and convince them to accept PayPal as a payment method. However, some Chinese suppliers also prefer using PayPal because the payment gets updated immediately in their accounts.

5) Is it possible to get a refund from Alibaba if you receive a defective product?

Yes, it is possible to get a refund from Alibaba for receiving a defective product. Alibaba has set specific criteria to examine whether the seller is at fault for sending the defective product.

When you return a damaged product, it undergoes the examination process. If the supplier is found guilty of sending the defective product, they will refund your payment into your account.


Alibaba is a secured online selling marketplace that offers the safest payment methods to ensure user satisfaction. However, some scammers still manage to find a way out and cheat the customers. They scam the buyers and capture their money.

We have explained the best Alibaba payment methods which you can use for safe payments. We also jotted down the best strategies to pay on Alibaba, reducing the risks of fraud and scams. Now, how you use this knowledge and wisdom to pay your suppliers safely without getting scammed is on you.

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