Payment Terms with China Suppliers: Safe & Smart

Protect Your Money When Importing

Published: April 12, 2026 | Reading time: 7 minutes

Most Common Payment Terms

1. T/T (Telegraphic Transfer) - Most Popular

Standard: 30% deposit, 70% before shipment

✅ Fast and simple
✅ Low bank fees ($30-50 per transfer)
❌ No buyer protection after sending

Best for: Established relationships, orders $5,000+

2. Alibaba Trade Assurance - Safest for Beginners

✅ Money-back guarantee
✅ Quality dispute resolution
✅ Free service
❌ Only works on Alibaba.com
❌ Supplier pays 2-3% fee

Best for: First-time orders, new suppliers

3. L/C (Letter of Credit) - Most Secure

✅ Bank guarantees payment
✅ Documents must match exactly
❌ Expensive ($200-500 in fees)
❌ Complex paperwork
❌ Slow (2-4 weeks)

Best for: Large orders $50,000+, high-risk countries

4. PayPal - Small Orders Only

✅ Buyer protection
✅ Instant payment
❌ High fees (4-5%)
❌ Rarely accepted for B2B

Best for: Samples, orders under $1,000

Negotiation Tips

First order: Insist on 30/70 T/T or Trade Assurance
Repeat orders: Negotiate to 30% deposit, 70% against B/L copy
Large orders: Ask for 20% deposit, 80% L/C at sight
Red flag: Supplier demanding 100% upfront

Payment Red Flags 🚩

❌ Western Union or MoneyGram (no recourse)
❌ Personal bank account (not company)
❌ Rush payment ("offer expires today")
❌ Bank account in different country

💡 Pro Tip: Always verify bank account name matches supplier's company name exactly. Scammers often provide "similar" account names.