DiFFreight Blog How to transfer money to a supplier in China?

How to transfer money to a supplier in China?

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A Huge Selection of Marketplaces, Developed Export – But How to Pay Your Chinese Supplier? This is a major issue for commercial trade, as Chinese payment systems are quite complicated for foreigners. DiFFreight experts share key insights on how to make payments for your products.

What is the importance of currency and invoice

Suppliers in China may issue an invoice in US dollars or RMB and include all relevant payment details.

A dollar payment is typically made via SWIFT transfer (usually takes around three business days).

The transfer in RMB currency can be made directly to the supplier account.

It is good to know that the best option to pay a supplier is to discuss partial payment with the Chinese side. For example, split the payment into two transfers: 30% and 70% of the total cost. To start the payment process, the Chinese supplier must first issue an invoice so that you can choose the correct payment method.

The invoice must include:

legal information (company name and registration numbers);
delivery terms;
product information;
contacts of the manager or company representative;
an official stamp;
shipping costs the seller covers.

By working with DiFFreight, we can assist you and provide three solutions for the seamless payment process:

SWIFT transfer in dollars with the company's payment details. Payments in dollars can take up to three business days.
Assistance with money transfers via Alipay in RMB. Payments are typically completed within one business day.
Payment in RMB directly to the supplier using the company's payment details.

Delivery of goods from China to Ukraine

Get more information

The payment assistance service is an additional service that is included in an all-inclusive package for working with China. It covers negotiation with the supplier, buying the goods, payment procedures, checking the cargo, and shipping it to Ukraine. It's as simple as that: You give us the link to the product, and we cover the entire logistics process.

According to our experience, many unpredictable issues may arise with invoices. The most common one is almost identical Chinese companies' names. Therefore, it is necessary to be attentive even with such minor details as the company name and carefully compare the names of the company you buy from and the company you pay for.

How Payment to Suppliers in China Is Made — Step-by-Step Guide

Paying a supplier in China has its own nuances related to currency restrictions, banking rules, and legal requirements. To pay for goods:

Receive an invoice from the supplier. The seller should send you an invoice specifying the payment amount, currency, bank details, and other necessary information. Once you receive the invoice, carefully check all the details.
Choose a method for transferring money to China. To make payments to suppliers in China, you can choose:

Bank transfer. For international transfers, you can use traditional SWIFT payments or modern online banking services. Some banks offer specialized payment systems for international operations.
Payment systems. You can transfer money through PayPal, Western Union, and other payment systems. However, note that PayPal is not always available for Chinese sellers due to its restrictions on transactions between different countries. Western Union is also not the most common method in trade with China, as it is usually used for transferring small amounts. The downside of using payment systems is their higher commission compared to alternatives.
Trading platforms. If you purchase, for example, on Alibaba, the platform may offer its own payment tools. Their advantage lies in the fact that tools like Alipay or Trade Assurance provide greater security for both parties to the agreement.

Prepare the documents. When transferring a payment through a bank, you will need certain documents. An invoice is a mandatory document confirming the cost of goods, the recipient’s bank details, and the signed contract.
Make the payment. You can visit a bank branch, provide the specialist with the necessary documents, and fill out a payment form. Some banks also allow international payments through their mobile apps or internet banking without visiting a branch. The time for funds to be credited to the recipient's account depends directly on the bank and the chosen transfer method. Typically, it takes a few working days.

How to pay for goods from China and avoid risks

Before transferring money to a Chinese supplier, check them:

Study their rating if buying from a marketplace, read reviews.
Request a copy of their business license. Some provinces offer online services to verify its authenticity.
Factory audit — personal or through agents. You can request a virtual tour.
Ask for samples or a test batch, especially before a large order.

For security, only make partial payments.

How to reduce fraud risks when transferring money to China

Chinese banks and the police actively monitor financial activities. It's unlikely you'll encounter a scam if you conduct a full check. Here are the key things DiFFreight recommends paying attention to:

Very low prices. While China is known for low prices, there's a market average. If the product is offered too cheaply, it's either low quality or you're dealing with a scammer.
What account are you transferring money to? It's best to ask for the details of a legal entity, i.e., a company, not an individual supplier.
Partial payment. Most suppliers work with a prepayment and final payment after delivery. You can specify in the contract that the remaining amount will be paid after the inspection of the batch. If they demand full payment upfront — that's a red flag.

We’ve prepared a detailed video on how to pay a Chinese supplier for an ordered product, discussing in detail the issues with account blockages in payment systems.

Problems with Transferring Funds to a Supplier: Solutions from DiFFreight

When working with intermediaries on domestic Chinese marketplaces, various difficulties arise, which are especially critical for non-residents.

Problem	Consequences	DiFFreight Solution
Restrictions of Chinese payment systems	You cannot independently top up AliPay/WeChat or open an account with a Chinese bank	We provide financial support and process payments through services and bank accounts
Currency conversion losses	You lose a certain percentage of the amount due to currency conversion	We process payments in Chinese yuan with minimal commission
Payment blocks and delays	If the supplier does not receive payment, they will not start production or shipment	We process payments through verified financial channels with virtually instant execution
Fraud	You may transfer funds to an illegitimate supplier or expose your sensitive data	DiFFreight verifies payment details before processing
Legal vulnerability	Improper documentation may prevent a refund if necessary	Delegate transaction documentation to us — every payment will be legal and secure

Where to Get Financial Support for Deals in China

To eliminate potential risks, seek financial transaction support. DiFFreight provides a full range of services, including consultations on safe payment methods, assistance in document processing, and monitoring & protection of your interests at every stage of the deal.

We will not only help you understand how to transfer money to a supplier in China, but also offer a full-service logistics solution.

Purchasing products based on links / selecting goods according to your requirements and paying through our Chinese accounts.
Product inspection in China: make sure you are not dealing with an unreliable supplier.
Customs brokerage services: preparing documents for customs clearance.

With us, shipping from China to Ukraine will be much easier.

Final Takeaways:

Never pay the supplier 100% upfront.
Carefully check all invoice details.

It’s always better to trust professionals, and DiFFreight has years of experience in international transactions. Choose a convenient way to contact us, and our specialists will help you make payments to your supplier quickly and without risks. DiFFreight also provides services: searching for suppliers in China and purchasing goods in China.

FAQ

1. What payment methods to Chinese suppliers are described in the article?

The article outlines three main methods: SWIFT transfer in USD, payment via Alipay in RMB, or direct RMB payment to the supplier’s company account.

2. What is partial payment and why is it recommended?

Partial payment means splitting the total cost (e.g. 30% upfront + 70% later). It reduces risks since the supplier doesn’t receive the full amount before delivery; the remainder can be paid after conditions (e.g. cargo inspection) are met.

3. What risks exist when transferring money independently and how to minimize them?

Risks include payment blocking (due to sanctions or suspicious transfers), fraud, and legal issues from incorrect documentation. To mitigate: verify the supplier, require full company details, avoid paying 100% upfront, and ensure documents are accurate.

4. What is financial support for transactions and what advantages does it offer?

Financial support means the logistics provider (e.g. DiFFreight) handles supplier negotiations, payment processes, documentation, and monitoring. Benefits include risk reduction, process simplification, and confidence in the legality of transactions.