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.
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.
Problems When Transferring Money to a Supplier: Solutions and Tips
When working with intermediaries on Chinese domestic marketplaces, payment difficulties arise. You can only pay via Alipay, WeChat, or a transfer to a Chinese bank account. For non-residents, this complicates trading significantly:
- You cannot open a Chinese bank account remotely if you are not a resident.
- You cannot top up Alipay from a Ukrainian bank card.
- Paying in USD results in losses due to currency conversion.
So if you are serious about working with China, it is best to find a partner who provides financial support. This way, you can pay directly in yuan with a small commission.
Risks of Making Payments to China Independently
Now you know how to pay for goods in China. However, don’t forget about potential risks:
- Payment blocking. Due to international sanctions, payments may be blocked or delayed. Additionally, if a transfer appears suspicious, it may be temporarily blocked for verification. Don’t forget about technical issues in banking systems, which may cause delays or loss of funds.
- Legal consequences. Incorrect documentation may lead to negative legal consequences.
- Fraud. Unfortunately, there’s a risk of transferring funds to fraudulent accounts. Scammers may also gain access to your banking information through phishing.
- Proof difficulties. If you encounter payment issues, proving your case and recovering funds can be quite challenging.
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.
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