Why did my supplier receive less than I sent?
A small transfer can arrive short because of intermediary deductions, receiving-bank charges or currency conversion. Match your bank confirmation to the supplier’s credit advice, check the agreed charge allocation and verify any top-up before paying. Supplier-side reconciliation can be coordinated by Cambridge China Bridge.
Identify the difference before accepting a debt
Ask the supplier to state the invoice reference, expected amount and currency, actual credit and requested shortfall. Check whether it is comparing the bank receipt with the invoice or with a local-currency conversion. A small payment can still incur bank charges, so its size alone does not establish that the claim is wrong.
This guide concerns money credited short. If the supplier cannot identify any credit, use tracing delayed or returned supplier payments. Keep an unexplained difference open rather than immediately accepting it as an unpaid invoice balance.
Build a reconciliation from bank records
Obtain your transfer confirmation and the supplier’s bank credit advice, with unrelated transactions concealed. Match the beneficiary, currency, payment reference and dates. Ask the supplier to obtain a bank breakdown showing whether a charge was deducted before credit or debited separately afterwards. A separately debited fee needs its own entry in the reconciliation.
Use the records below to explain the difference. Where conversion occurred, obtain the bank’s applied rate and conversion details; do not substitute a current online rate. Ask your sending bank to investigate any deduction that neither record explains. Mark each item as confirmed or awaiting explanation.
| Record | What to establish |
|---|---|
| Buyer’s account debit | Amount sent, separately charged sending fee and any conversion |
| Transfer confirmation | Instructed amount, currency, beneficiary and charge option |
| Supplier’s credit advice | Incoming amount, deductions and net amount credited |
| Separate bank charge entry | Whether a receiving fee was debited after the credit |
| Reconciled difference | Confirmed charges, conversion differences and unexplained remainder |
Agree who bears each charge
Compare the purchase terms with the charge option actually submitted to the bank. Ask the bank to explain whether that option allocates sending, intermediary and receiving charges to the payer, the recipient or between them. The instruction recorded by the bank and your agreement with the supplier need to be checked separately. Use comparing banks and payment providers when choosing a route.
For future payments, write down the invoice currency, required net receipt, responsibility for each charge and how later deductions will be settled. Avoid an unexplained phrase such as ‘buyer pays bank fees’. If the existing terms are silent or disputed, agree this shortfall in writing before paying; do not assume either party accepts responsibility.
Verify the top-up request and destination
Require a written request linking the top-up to the original invoice and transfer. It should explain the reconciled deduction, why your business is being asked to cover it, the currency and how the supplier will apply the payment. Check for previous top-ups, credits or deductions already included in the next balance request.
Confirm the request through an established supplier contact. UK Government fraud guidance recommends checking both old and new account details through a phone number you already know, rather than one supplied in the message. Pause any account change until verified. Use checking a supplier before payment for the beneficiary checks.
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Settle without repeating the shortfall
Before sending a separate top-up, ask the bank what the supplier will receive after charges on that payment. A further transfer can create another shortfall. Discuss an agreed addition to the next scheduled payment, a supplier waiver or a different verified payment route. Record the chosen settlement and any effect on production or shipment; do not defer or deduct money unilaterally.
After settlement, obtain confirmation that the supplier has applied the agreed amount and state whether the invoice is settled or what remains outstanding. Keep the original invoice, bank records and adjustment agreement together. Use reconciling a supplier balance request before the next payment. Cambridge China Bridge’s staff in China can help clarify supplier records and the agreed settlement.
Frequently asked questions
Why did my supplier receive less than I sent?
Check intermediary deductions, receiving-bank charges and currency conversion. Match your transfer confirmation to the supplier’s bank credit advice before accepting the claimed shortfall.
Must I pay the supplier’s bank charges?
Check the agreed payment terms and the charge option submitted to your bank. If responsibility is unclear, obtain the bank breakdown and agree the allocation in writing before paying.
Should I send a separate bank fee top-up?
Verify the shortfall and beneficiary first. Ask what the top-up will deliver after its own charges. Consider an agreed addition to the next payment or a waiver instead of repeated small transfers.
Can I add the shortfall to my next payment?
Ask the supplier to agree the amount, currency, invoice allocation and any effect on production or shipment in writing. Confirm how charges on the next transfer will be handled.