Home / Logistics Knowledge / How to Pay Chinese Suppliers Safely
Payment is where most first-time importers feel exposed. Knowing the common methods and their protections helps you pay suppliers without losing leverage or money.
| Method | How it works | Best for |
|---|---|---|
| T/T (bank wire) | Direct transfer to the supplier's Chinese bank account | Established relationships, larger orders |
| Alibaba Trade Assurance | Escrow held by the platform, released on confirmation | New suppliers met on Alibaba |
| Letter of credit (L/C) | Bank guarantees payment against compliant documents | Large or high-value orders |
| PayPal or card | Fast but fees and chargeback limits apply | Small samples, low amounts |
New relationships often use a 30% deposit with 70% balance against a bill of lading copy, or 100% before shipment once trust is built. Avoid paying 100% upfront to an unverified supplier.
Platforms like Alibaba Trade Assurance hold your payment until you confirm the order meets the agreed specification. For off-platform suppliers, a letter of credit adds bank-level protection but costs more and requires precise documents.
An escrow service such as Alibaba Trade Assurance, or a letter of credit through your bank, keeps leverage until goods are confirmed.
A 30% deposit with the balance against shipping documents is common for new relationships. Established trust may move to other splits.
Only with a verified, long-trusted supplier. For unknown factories, keep a deposit-balance split or use escrow.
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