Paying Chinese suppliers safely: T/T, letters of credit and platform protection
How you pay decides how much you can lose. The main options and when to use each.
This guide is published by Husbar Media, which also runs the marketing agency Husbar. About us.
Key points
- Bank transfer (T/T) with a deposit and balance is common.
- Letters of credit protect both sides on larger orders.
- Platform payment protection helps on marketplace orders.
- Never pay a personal account or new bank details without checking.
| Method | How it works | Protection | Fits |
|---|---|---|---|
| T/T bank transfer | Deposit, balance after inspection or on documents | Depends on terms | Most orders |
| Letter of credit | Banks pay when agreed documents are presented | High, more paperwork | Large orders |
| Platform protection | Payment through the marketplace with order protection | Platform rules apply | Marketplace orders |
| Card or online payment | For samples and small orders | Card protections may apply | Samples |
Reduce risk
- Link the balance to passing a pre-shipment inspection.
- Pay only an account in the company's name.
- Confirm any change in bank details by phone on a known number.
- Keep the payment schedule in your contract.
Red flags
- Requests to pay a personal account
- Sudden new bank details by email
- Pressure to pay the full amount upfront for a first order
Related: checklist before paying and sourcing scam red flags.
How Husbar can help
Husbar China Line structures payment terms with suppliers so Gulf brands only pay the balance for goods that pass inspection. See Husbar China Line.
Frequently asked questions
What is a common payment split?
A deposit before production and the balance after inspection or against shipping documents is common. Terms vary.
Is a letter of credit worth it?
For large orders it adds protection, but it costs more and needs careful paperwork.
What if a supplier changes bank details?
Confirm by phone on a number you already have before paying.