Bank transfer (T/T)
A direct transfer from your bank account to the factory's account through the international transfer system. It is the most common method in the charcoal trade because it is simple and fees are relatively low.
In international trade a transfer is usually split into an advance before production and a balance after shipment, linked to the documents. The split and timing are agreed and written on the proforma invoice.
- Pros: fast, lower fees, no complex bank procedures.
- Watch out: it relies on trust, so vet the supplier before the first transfer, as described in 10 questions before your first order.
Letter of credit (L/C)
Your bank opens a credit in the factory's favour and commits to pay once the factory presents the required documents in line with the credit terms (such as invoice, packing list, bill of lading and certificate of origin). The factory is assured of payment, and you are assured the bank will only pay after shipment.
- Pros: stronger protection for both sides, suited to large deals or a first transaction.
- Watch out: higher bank fees in both countries, more time to open and check, and banks reject even small discrepancies between documents and terms. Review the draft credit with the factory before opening it.
The documents you can require in the credit are explained in our export documents guide.
Western Union and MoneyGram
Fast money transfer services, suited to relatively small amounts or where bank transfers from the importer's country are difficult. Each has amount limits and fees that vary by country, so check them before relying on them for a full container.
Quick comparison
| Method | Speed | Cost | Protection | Best for |
|---|---|---|---|---|
| Bank transfer T/T | Fast | Low | Trust-based | Most deals and repeat customers |
| Letter of credit L/C | Slower | Higher | High for both sides | Large deals and first transactions |
| Western Union / MoneyGram | Near-instant | Varies with amount | Trust-based | Small amounts |
How to protect yourself from payment fraud
The most common fraud in international trade is a fake email claiming the supplier has changed its bank account. To protect your money:
- Confirm bank details by phone or WhatsApp using the official number on the company's website, not a number in the email itself.
- Treat any request to change bank details after the deal is agreed as a red flag until proven otherwise.
- Check the account holder's name matches the company name on the proforma invoice.
- For a first deal, visit the factory or do a video call from inside it. Our factory welcomes visitors Saturday to Thursday, 9 am to 6 pm.
Our official phone, WhatsApp and email are on the contact page.
Which method should you choose?
For a large first deal, a letter of credit gives more peace of mind in exchange for extra cost and time. As trust builds and orders repeat, most importers move to bank transfer for its simplicity. This is general information, not financial advice, so check fees and local requirements with your bank.
Frequently asked questions
Which payment methods do you accept for coconut charcoal?
Bank transfer (T/T), letter of credit (L/C), Western Union and MoneyGram.
Is a letter of credit safer than a bank transfer?
It offers stronger protection because the bank only pays against compliant documents, but fees and paperwork are higher. Bank transfer is simpler and faster and suits ongoing business.
When does production start after payment?
After order confirmation and receipt of the agreed payment or opening of the L/C, plus approval of the pack design for private label. Lead time is 15 to 35 days depending on quantity.
What should I do if I get an email changing the bank account?
Do not pay anything until you confirm by phone using the official number on the company's website, not the number in the email.
Further reading: