How to pay Chinese suppliers safely
The common payment methods, when each fits, and the simple checks that prevent most payment fraud.
The common methods
Most factory orders are paid by international bank transfer (often called T/T), usually staged: a deposit to start production and the balance around shipment, frequently after a satisfactory inspection.
For larger orders a letter of credit adds bank-backed security for both sides, and platform escrow schemes (such as Trade Assurance on Alibaba) hold funds until you confirm the order is met.
Stage your payments
Staged payment is your main protection. A typical structure is a deposit up front and the balance released once a pre-shipment inspection passes — so quality is confirmed while you still have leverage.
Avoid paying 100% up front to a new supplier you have not verified.
Simple checks that prevent fraud
Pay into the supplier's registered company bank account, and check the account name matches the company you are contracting with — not a personal account or an unrelated name.
Treat any last-minute 'our bank account has changed' message with suspicion and verify it through a known contact. Compromised email and swapped bank details are the most common import fraud.
Where an agent helps
A sourcing partner that handles payments through established UK, HK and China accounts removes a lot of this risk and gives you a clean, single invoice.
It also means you are transferring to a party you have a UK relationship with, rather than wiring money to an unknown overseas account.
Frequently asked questions
Is a deposit normal?
Yes. A deposit to start production with the balance around shipment is standard practice. Paying the full amount up front to an unverified supplier is not advisable.
How do I avoid payment fraud?
Pay the company's registered account (name must match), stage your payments, and never act on a sudden request to change bank details without verifying it independently.