Money is where import fraud happens. Scammers rarely fail at making a product — they fail you at the payment stage. Understanding which payment methods are safe, and which structures protect you, is the single most valuable skill when dealing with Chinese suppliers.
Payment methods compared
- T/T (bank transfer): the standard for China trade. Safe when structured correctly (see below). Banks charge fees and transfers take 1–3 days
- Platform escrow (e.g. Alibaba Trade Assurance): holds your money until you confirm delivery — good for first orders with platform suppliers; check the terms carefully, coverage is not unlimited
- Credit card / PayPal: useful for small payments and samples; chargeback protection helps, but suppliers often add 3–5% fees and may not accept them for production orders
- Letter of credit (L/C): for large orders (tens of thousands of dollars up); banks guarantee payment against documents, but it is paperwork-heavy and rarely worth it below that level
The structure that protects you
A common safe arrangement for first orders: 30% deposit to start production, balance against inspection before shipment (typically 60–70% paid when inspection passes, final small amount on documents). The deposit covers the factory’s material cost; the balance only moves when an independent check confirms your goods exist and meet spec. Never pay the full amount upfront, and never send the balance before the goods are checked — our AQL inspection guide explains how that check works.
Red flags to walk away from
- 100% upfront on a first order, especially to a personal bank account
- A changed bank account in an email right before payment — the classic hacked-invoice scam; confirm account changes by phone/video with the person you know
- Pressure and urgency (“pay today or we lose the production slot”)
- Quotes far below everyone else’s — the loss will arrive elsewhere
- Refusal of samples, inspection or a written contract
Verifying before you pay anything
A deposit to a verified factory is normal risk; a deposit to an unverified one is a gamble. Run at least the desk check from our factory audit guide before the first transfer — licence, address, and ideally an on-site confirmation.
We handle payments the safe way for our clients: verified suppliers, structured terms, inspections before balances release. If you are about to pay a supplier and want a second pair of eyes, talk to us first.