Compare banks for international supplier payments
Compare the legal entity handling your money, its regulatory status, protection while funds are held, tracking and total sterling cost for the supplier’s agreed net receipt. Ask each provider for a written quote using the same currency, recipient and payment terms. Supplier checks and order coordination are available through Cambridge China Bridge.
Check the company behind the payment service
Start with the legal entity named in the account terms, rather than the brand on the app. Search the Financial Conduct Authority’s Financial Services Register, which HMRC identifies as the place to confirm payment-institution authorisation. Record the status shown and ask the provider to explain its permissions, any restrictions and whether another firm handles your funds.
Make a comparison sheet for your bank and shortlisted providers. Include the contracting company, receiving currency, supported supplier account, funding method and support contact. Ask whether the service accepts your business and the intended supplier payment before opening an account or sending funds.
Separate safeguarding from deposit protection
Safeguarding aims to keep a pool of funds available for customer claims if a payment or electronic-money institution becomes insolvent. The payment-services and electronic-money regime does not provide recourse to the Financial Services Compensation Scheme. Do not treat safeguarding as equivalent to bank deposit protection.
Ask a non-bank provider to explain whether and how your particular funds are safeguarded, when that protection starts and ends, and the process if it fails. Ask a bank to confirm whether your business and the account balance qualify for deposit protection. Keep only the funds needed for the planned payment with a provider until you understand these answers.
Compare the cost of the supplier’s net receipt
Ask each provider to quote the total sterling debit needed for the same supplier to receive the agreed invoice amount in the agreed currency. Obtain quotes close together and record their expiry. A transfer fee alone cannot show the cost: include the exchange rate, funding charges, intermediary deductions and receiving-bank charges.
Ask which charges are included, which can be deducted later and whether the supplier’s net receipt is guaranteed or estimated. If deductions are uncertain, agree who pays any shortfall before transferring. Check the invoice currency and payment terms using how to read a Chinese proforma invoice.
| Comparison point | What to request |
|---|---|
| Buyer’s cost | Total sterling debit, including funding and transfer charges |
| Currency conversion | Applied exchange rate, conversion charges and quote expiry |
| Supplier’s receipt | Net amount and currency, with guaranteed or estimated status |
| Deductions | Intermediary and receiving-bank charges, and who pays a shortfall |
| Failure costs | Trace, cancellation and return charges, including any conversion on return |
Find out what tracking actually proves
Ask the provider to distinguish money received from you, money dispatched, arrival at the receiving bank and credit to the supplier’s account. Request a downloadable payment confirmation and the reference used to trace that route. Do not assume an app’s completed status proves the supplier has received the full invoice amount.
Before paying, ask who starts a trace, what information they need, how updates arrive and what happens if funds are held, rejected or returned. Ask about charges and exchange-rate treatment on a return. If the supplier reports non-receipt, reconcile the transfer reference and account details before considering another payment.
Choose the route, then reconcile the payment
Choose a provider whose written answers fit the order, rather than assuming a bank or payment app is always cheaper or safer. Provider comparison does not replace the staged-payment decisions in how to pay Chinese suppliers safely or the account-change checks in avoiding sourcing scams.
Keep the quote, agreed charge allocation, sterling debit, payment reference and supplier’s receipt confirmation together. Ask the supplier to confirm the currency and net amount credited, then resolve any shortfall against the agreed terms. Cambridge China Bridge’s staff in China can coordinate supplier communication; ask the payment provider itself to confirm its regulatory status and funds protection.
Frequently asked questions
Is a bank cheaper than an international payment provider?
Compare written quotes for the same supplier net receipt. Include the exchange rate, funding fees and possible bank deductions, rather than comparing transfer fees alone.
Is safeguarded money covered by the compensation scheme?
Safeguarding and bank deposit protection are different. The payment-services and electronic-money regime does not provide recourse to the Financial Services Compensation Scheme.
Why did my Chinese supplier receive less than I sent?
Ask for the credited currency and amount, then check conversion and intermediary or receiving-bank deductions. Reconcile these against the quote and agreed responsibility for charges.
What if my transfer says completed but the supplier has no money?
Ask what completed means for that route and request a trace reference. Confirm the receiving account and ask the supplier to check with its bank before considering another payment.