|
 |
 |
|
| |
|
| Check
the credentials of potential partners before engaging in business
|
|
| |
Be sure to check the credentials of all potential partners
before engaging in any business over the internet.
You can check the backgrounds of established manufacturers or wholesalers
with trade institutes, local or online credit agencies, or online
services such as D&B. Unfortunately, few resources are available
to verify the legitimacy of newly established businesses. Be especially
vigilant when dealing with new businesses. |
| |
|
| Payment |
|
| |
Letter of Credit and Escrow are the recommended
payment methods
| » Letter of Credit
(L/C) |
|
|
A Letter of Credit is the preferred payment method. However,
there is some possibility of fraud due to incorrect or forged
shipping documents. Minimize the potential for fraud by contacting
the L/C issuing bank.
Be sure to check the L/C number, opening date, opening place,
name and address of the issuing bank, shipping date, valid
date, loading and unloading port, applicant, period of presentation,
amount, as well as details of transshipment, partial shipment,
etc.
|
|
|
| » Escrow |
|
|
Escrow.com
is the transaction settlement service used by many of the leading
e-Commerce sites, including eBay and eBay Motors. Escrow.com
acts as a secure third party to protect the Buyer and Seller. (but refer to www.escrowfraud.com)
|
|
|
| » Avoid T/T
(Telegraphic Transfer payment) |
|
|
For Buyers: It is unwise to accept an overseas supplier's
request for pre-payment. In most cases, a request for T/T
payment involves attempted fraud.
For Sellers: it is unwise to agree to accept payment
from an overseas buyer after they have received products.
Once a buyer has received samples or products without payment,
it is very difficult to get them back.
|
|
|
| » Avoid Payment
by Western Union |
|
|
Most of the fraudulent cases reported to EC21 involve payment
via Western Union. After a buyer sends funds, the receiving
breaks contact and party disappears. You cannot trace the real
name of an account holder with a wiring service such as Western
Union. |
|
| Top |
|
| Make
a clear contract |
|
| |
You should make a trade contract and keep it for a specific
period to prevent argument. The contract should include sales conditions,
payment method, an arbitration clause, quality inspection, etc. |
| |
|
| Stay
in frequent contact with business partners |
|
| |
Call the company's phone number and check that the person
you are in touch with actually works for the company. Be suspicious
of any trader who uses only an e-mail address and cell phone and is
reluctant to reveal a telephone number.
Maintain frequent contact and ask in detail about price, quality,
payment method, contracts, etc. Genuine traders will respond positively
and promptly. Most successful internet traders maintain close contact
with business partners and reply promptly to inquiries.
|
| Top |
|
| Check
Contact Information |
|
| |
E-mail Address: Do not rely on e-mail to contact
a business partner. Even if the company has its own domain name, you
may not be able to trace its owner.
Fax Number: Look out for companies that use the same number
for telephone and fax. They are likely to be small businesses. Also,
it is best to avoid companies that list only a fax number in their
contact information.
Website address: An impressive website does not guarantee
the honesty or existence of a company. Don't be lulled into a false
sense of security.
|
| Top |
|
| Samples |
|
| |
For Sellers: Request a nominal payment for samples.
When an unknown buyer requests samples while hinting at a large order,
it is always wise to request at least a nominal pre-payment.
For Buyers: Request samples to check the quality of product.
Order a sample before committing to a purchase order to be sure that
the product meets your expectations. Don't forget to pay for samples. |
| |
|
| Be
Wary of Over-generous Offers |
|
| |
Be wary of potential partners who offer a particularly
high or low price in the first instance. It is easy to be tempted
by such offers, but they are most often attempts to defraud. This
method is most commonly employed in the mobile phone and computer-related
business. |
| Top |
|
|
