You just spent six weeks negotiating a killer price on a custom-manufactured product. The mold is ready, the golden samples are perfect, and the factory is waiting for a 30% initial deposit. Suddenly, they send you an invoice with a different company name and a request to wire the funds to a personal bank account. Do you send the money? If you hesitate, you are already smarter than the thousands of importers who lose millions to trade scams every single year. Figuring out exactly how to pay china suppliers safely is the most critical skill in global sourcing. One wrong wire transfer can wipe out your entire procurement budget. We are going to break down the exact payment strategies, banking protocols, and red flags our sourcing agency uses to protect our clients’ capital.

The Gold Standard: 30/70 T/T Bank Transfers

For 85% of B2B transactions leaving China, the Telegraphic Transfer (T/T), also known as a wire transfer, is the undisputed king. The standard terms are highly specific: 30% upfront as an initial deposit, and 70% when the goods are completed, but before they leave the factory. This split gives the manufacturer enough capital to buy raw materials, while keeping the bulk of your money as leverage to ensure they actually finish the job and meet your quality standards.

When you initiate a T/T, expect the entire process to take 3 to 7 business days to clear into the supplier’s account. Factories will not begin production until the cash physically hits their bank. A critical step many first-time buyers miss is accounting for intermediary bank fees. Correspondent banks typically skim $20 to $50 per transfer. If your initial deposit is exactly $10,000, the supplier might only receive $9,950, leading to production delays until you wire the missing balance. Always add an extra $50 to your wire to cover these hidden routing fees.

Step-by-Step Guide to Verifying a Supplier’s Bank Account

Never wire money based on a Proforma Invoice (PI) alone. The most expensive mistake you can make is sending a 30% deposit to a hacker who intercepted your email thread. Follow this strict 4-step verification protocol before authorizing any payment:

  • Step 1: Match the Legal Names. The beneficiary name on the bank details must match the official legal name on the supplier’s business license. If the business license says “Shenzhen Tech Manufacturing Co., Ltd.” but the bank account reads “Shenzhen Tech Trading Ltd.” or simply “Zhang Wei,