B2B Payments: How to Pay International Suppliers in USD, CNH, and EUR
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anja
Clare Shi
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Key takeaways
If you’re doing research on how to source wholesale from 1688.com, you may have a few questions such as:
If you’re doing research on how to source wholesale from 1688.com, you may have a few questions such as:
If you’re doing research on how to source wholesale from 1688.com, you may have a few questions such as:
Paying international suppliers can be a balancing act between managing foreign exchange, minimising costs, and maintaining smooth business relationships. Whether you’re importing raw materials from China or sourcing products from Europe, having a solid system for making scheduled payments to suppliers is essential, especially if you’re involved with import trade services.
In this guide, we’ll explore popular B2B payment methods for suppliers dealing in USD, CNH (offshore Chinese Yuan), and EUR, and how you can use tools like multi-currency accounts and automated billing to simplify the process.
1. Telegraphic Transfers (TT)
A Telegraphic Transfer (TT), also known as a wire transfer, is a bank-to-bank electronic transfer of funds using the SWIFT network.
How it works:
- Funds are transferred electronically from your business bank account to your supplier’s overseas bank account.
- Transfers typically take 1–5 business days depending on intermediary banks, time zones, compliance checks, and currency conversion delays.
Best for:
- One-off or high-value supplier payments in major currencies like USD, CNH, and EUR.
- Suppliers who require upfront payment or deposits to their bank account
Costs to consider:
- Transfer fee (RM20–RM100 or more per transaction)
- Intermediary bank charges
- Currency conversion fees and exchange rate markups
Benefits:
- Secure, with SWIFT code confirmation
- Widely accepted for global trade
- Clear documentation of entire payment
Risks:
- Errors in supplier details can cause delays or fund losses
- Costly for frequent or smaller payments
2. Multi-currency business accounts
A multi-currency business account that lets you hold and pay in multiple currencies — such as USD, CNH, and EUR — from one account. This removes the hassle of frequent currency conversions and additional fees, making supplier payments faster and more efficient.
How it works:
- Open a multi-currency account g. WorldFirst Account
- Receive, hold, and pay in multiple currencies without conversion costs
- Send payments directly to suppliers at lower cost
- In some cases, transfers are done within local network rather than SWIFT network depending on the provider
Best for:
- Regular international transactions
- SMEs looking to minimise FX risk and fees
- Batch payments
Costs to consider:
- Annual maintenance fees
- Minimum deposit or balance requirements Currency conversion charges if converting between currencies
Benefits:
- Better control over exchange rate management
- Streamlined Payment Processes
- Better accuracy and speed of transfers
- Manage payments, collections and FX in one platform
Risks:
- Complex account requirements or documentation
- Limited currency options
Open a WorldFirst Account to pay in USD, CNH, and EUR with no annual fees, no minimum balance, no hidden costs and highly competitive rates. Enjoy instant, free transfers to other WorldFirst users — saving you time and money with every payment.
3. Letters of Credit (LC)
A Letter of Credit is a financial guarantee provided by a bank on behalf of the buyer, ensuring that the seller receives payment once conditions are met.
How it works:
- Apply for an LC from your bank
- The LC outlines terms of delivery and payment
- The bank releases payment to the supplier after documents are verified
Best for:
- Large transactions (e.g. >USD50,000)
- Working with new or unverified suppliers
Costs to consider:
- Bank processing fees (can range from 0.75%–1.5% of invoice value)
- Legal or document vetting fees
Benefits:
- Reduces risk for both buyer and seller
- Payment is only made when delivery terms are fulfilled
Risks:
- Complex documentation
- Expensive for smaller businesses
4. Escrow Services
Escrow holds the buyer’s payment until goods are delivered and confirmed, then releases the funds to the seller.
How it works:
- You pay into a third-party escrow account
- Funds are released to the supplier once goods are received or conditions are met
Best used for:
- Buying from online platforms
- First-time transactions with new suppliers
Costs to consider:
- 3%–5% transaction fee (often paid by supplier but passed on to buyer)
Benefits:
- Adds a layer of security
- Good for small transactions or trial orders
Risks:
- Limited dispute resolution options
- Not commonly used for high-volume trade
5. Automated debits and billing solutions
For regular purchases or retainer-style agreements, automated billing or debit authorisations can be arranged with select suppliers.
How it works:
- Set up recurring payments through your payment provider
- Automate invoice processing and reconciliation
Best used for:
- Recurring monthly orders
- Subscription-style business relationships
Costs to consider:
- Varies depending on your bank or platform
Benefits:
- Saves time on manual transfers
- Reduces late payments
Risks:
- Requires strong supplier trust
- Less flexibility once scheduled
Tips and tools to manage supplier payments effectively
Efficient supplier payment management isn’t just about selecting the cheapest method — it also involves tools and strategies to streamline the process and reduce operational risk.
1. Use payment automation platforms
WorldFirst allows integration with Xero, Oracle Netsuite and other accounting software, allowing businesses to schedule payments, track invoices, and budget.
2. Monitor currency volatility
Use FX tools or rate alerts to take advantage when the exchange rate is in your favour.
3. Set clear payment terms
Establish payment schedules, penalties for late payments, and preferred methods upfront with each supplier. This avoids confusion and builds trust.
4. Segment suppliers by payment priority
Group suppliers based on urgency, payment frequency, and risk profile. Use faster or more secure methods (like TT or LC) for high-risk suppliers.
5. Track all payments in one dashboard
Centralise all cross-border payments using a platform that lets you visualise cash flow and reconcile with your books.
Choosing the right payment method
When evaluating how to pay international suppliers, consider:
- Currency preferences
- Trust level with the supplier
- Payment frequency and invoice volume
- Risk appetite and contract size
- FX exposure and rate volatility
At WorldFirst, we make it simple to pay suppliers and receive business payments. Create a multi-currency business account to track shared expenses, automate payments, , and more. Access a comprehensive list of features and tools from our user-friendly dashboard.
Why consider WorldFirst?
- Easy onboarding – 100% online account opening
- Low cost – $0 set-up fees, $0 minimum account balance, $0 receiving fees, $0 annual fees
- Fast payments – Same-day supplier payments to China, Hong Kong (USD, CNH, HKD), US (USD), Europe (GBP, EUR) through our local network
- Seamless payments to 1688.com using World Pay (跨境宝）- Instant payment to Chinese suppliers on com, one of the largest B2B wholesale sourcing online platforms
Ready to take control of your international payments? Register for a WorldFirst Account today.
WorldFirst is a leading global financial platform that provides international payment solutions to help businesses overcome trade barriers and high fees. We support over 1.2 million
customers, enabling payments in 100+ currencies across more than 210 countries and region. We are licensed and regulated in Malaysia as a MSB Class A licensee, allowing us to provide more efficient and secure payment solutions for Malaysia businesses.
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