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 EC21 Credit Report. Unfortunately, few resources are available to verify the legitimacy of newly established businesses. Be especially vigilant when dealing with new businesses.

Certain types of items (e.g. computers, jewelry, electronics, etc.) carry a higher fraud risk and require additional checking before completing the sale. Do additional checking, especially with popular items that tend to be sold out in stores.

Be suspicious of deals that seem too good to be true. They usually are.

Be suspicious of sellers offering very low prices for hard to find items who seem to have a large number of these same products.

If a seller is offering a number of the same items, ask to speak with the seller's supplier. Independently verify that the supplier is a legitimate business with the correct address and phone number through a telephone directory or by calling directory assistance.

Letter of Credit, Paypal, or Escrow is the safe payment method recommended by many buyers

• 1Letter 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 risk of potential frauds 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.

• 2Paypal

  PayPal is online payment service providing you personal money account through online, which can be funded with an electronic debit from your bank account or by a credit card.
  For more information, please visit www.paypal.com.

• 3Escrow

  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.

• 4Avoid pre-payment by T/T (Telegraphic Transfer payment, Bank Wire Transfer)

  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.

• 5Avoid pre-payment by Western Union

  Western Union is a widely used payment method; however 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.

Exercise caution when purchasing items with a significantly delayed delivery date. Delivery dates further than 20 days after your payment involve more risk. Be aware that PayPal sellers are not allowed to sell goods with delivery dates delayed more than 20 days from the date of payment.

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.

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.

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.

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 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.