In international logistics, choosing the right payment method is just as strategic as selecting a reliable supplier or freight forwarder. Poor anticipation of this step can lead to delays, disputes, or even financial losses. Conversely, an appropriate payment method strengthens the business relationship and ensures smoother operations.
In this guide, we review the main payment methods used in the supply chain, with their benefits, drawbacks, and best-use scenarios. We also highlight the solutions offered by DocShipper, designed to fit the needs of both small businesses and multinational corporations.
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Did you know? More than 70% of international trade disputes are linked to payment issues (delays, lack of guarantees, hidden fees). Choosing the right method is therefore critical to securing your supply chain.
1. Bank Transfer (T/T – Telegraphic Transfer)
Bank transfer is the most common and traditional payment method in international trade. It relies on a direct bank-to-bank transfer, usually processed via the SWIFT network.
Advantages:
- Accepted by almost all suppliers
- Relatively fast (2–5 business days)
- Traceable and documented transactions
Disadvantages:
- High bank fees, especially for intercontinental transfers
- No recourse if the supplier fails to deliver
- Risk of fraud with unverified suppliers
T/T is ideal for regular transactions with trusted partners and for medium to large amounts.
DocShipper Tip
Watch out for scams! Always verify the authenticity of bank details before making a transfer. Fraudulent bank account substitutions are common in international trade.
2. Letter of Credit (L/C)
A Letter of Credit is a guarantee issued by the buyer’s bank, committing to pay the supplier once all contractual conditions (documents, deadlines, compliance) are met.
Why choose an L/C?
- It protects the buyer: the supplier is paid only if obligations are fulfilled.
- It protects the supplier: payment is guaranteed by the bank.
However, this method involves significant banking fees and complex administrative procedures. It is most recommended for first-time collaborations or high-value transactions.
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Common mistake: choosing a code that is too generic or approximate. While it may seem convenient, this exposes you to risks of miscalculated duties, incorrect taxation, or even blocked shipments.
3. Credit Card Payment
Credit card payments are becoming more common in B2B trade, thanks to their speed and simplicity. Transactions are processed instantly, and chargeback mechanisms provide buyers with an additional layer of protection.
That said, processing fees (2–4%) make it unsuitable for large amounts. Credit card payments are best for small orders, prototypes, or service-related expenses.
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4. PayPal
PayPal is popular for its convenience and buyer protection features. Funds are transferred through the platform and usually received instantly by the supplier.
Pros: speed, ease of use, buyer protection.
Cons: high fees (3–5%), transaction limits depending on the country, not suitable for large volumes.
PayPal is best for testing new suppliers, ordering samples, or handling low-value transactions.
5. Cryptocurrencies (BTC, ETH, USDT)
Cryptocurrency payments are increasingly finding their place in international trade. Thanks to blockchain technology, transactions are validated within minutes, without banking intermediaries, and with reduced fees.
Strengths: fast, transparent, independent from banks.
Weaknesses: volatility (except stablecoins), unclear regulations, limited adoption.
Cryptos are particularly useful for tech-savvy companies or urgent transactions where traditional banking processes are too slow.
DocShipper Tip
Trend: Studies estimate that nearly 12% of cross-border B2B payments could be processed via cryptocurrencies by 2030.
6. Cash Payment
Although rare in international logistics, cash payments still exist for local or low-value transactions. The advantage is immediacy and the absence of bank fees, but the risks (security, traceability, legality) are very high.
7. Other Supply Chain Payment Methods
Some alternative methods are occasionally used:
- Open Account: the buyer pays 30–90 days after receiving the goods.
- Cash Against Documents (CAD): payment is made only once the buyer receives the shipping documents.
- Escrow: a third party holds the money and releases it once the goods are delivered.
These solutions are interesting but require either trust between partners or a reliable intermediary.
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Lower risk, transparent pricing, and a single point of contact from pickup to delivery.
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One single point of contactA dedicated consultant coordinating every step and keeping you informed.
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9,200+ operations / 6,000+ clientsProven processes on China ↔ EU/US lanes (FCL, LCL, air, road, rail).
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No hidden feesTransparent quotes and document guidance to avoid surprises.
8. DocShipper’s Payment Solutions
At DocShipper, we understand that every client and every shipment is unique. That’s why we offer a wide range of payment methods, adapted to both the size of your projects and your security requirements:
- Letter of Credit (L/C) for secured high-value transactions
- Bank Transfer (T/T), the most common B2B method
- Credit Card for fast and simple small payments
- PayPal, perfect for prototypes or low-value orders
- Cryptocurrencies (BTC, ETH & USDT) for modern and borderless payments
- Cash, only for very specific cases
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DocShipper, at the scale of your ambitions. Whether you’re a growing startup or an established multinational, we tailor our logistics and financial solutions to support your payments anywhere in the world.
Conclusion
Each payment method in the supply chain has its own strengths and weaknesses. Bank transfers remain the standard, Letters of Credit provide maximum security, PayPal and credit cards offer flexibility and speed, while cryptocurrencies pave the way for a new generation of international transactions.
With DocShipper, you benefit from the full range of options, backed by a trusted partner, to manage your imports and exports with complete peace of mind.
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FAQ – Payment Methods in the Supply Chain
What is the difference between a bank transfer (T/T) and a Letter of Credit (L/C)?
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