Paying a Chinese supplier safely
The payment methods that protect your money, the ones to avoid and the warning signs before you pay.
The golden rule: pay on the platform whenever you can. Your money is held there until delivery, and you can open a dispute if the goods do not match.
On the platform: the safest
- Taobao: card payment through Alipay. The seller is only paid when you confirm receipt.
- 1688: choose the secured transaction (担保交易). Foreign buyers pay through dedicated services, such as WorldFirst, when the supplier accepts them.
- Alibaba.com: Trade Assurance covers orders paid on the site, by card or bank transfer, if the goods are not delivered or do not match.
Off the platform: for large orders
- International bank transfer, often in US dollars, to the company’s account. Expect bank fees and a few days.
- The usual pattern: a 30% deposit when ordering, the balance before shipping, after photos or inspection.
- The beneficiary name must exactly match the company name on the proforma invoice (PI).
- Some services let you send yuan to an individual’s Alipay account, with limits: handy for a small purchase, not for paying a factory.
Warning signs. A “new bank account” announced by e-mail, payment requested to a personal account under another name, a price far below everyone else’s, pressure to pay fast or off the platform. In these cases, stop and check through the site’s chat.
Keep your proof
Keep the invoice, screenshots of the conversation and the proof of payment. They help in a dispute, and for customs: the declared value of your shipment is the price you paid.