How to Pay a Chinese Supplier Safely
Published: August 25, 2026 | 8 min read
Payment method balances cost and risk. Safest for new suppliers: Alibaba/Trade Assurance escrow or a letter of credit (LC); common for established: T/T 30% deposit + 70% before shipment. Avoid full upfront wire to unknown factories. This guide helps wholesalers pay safely.
The Sourcing Map
| Type | FOB Cost | Retail |
|---|---|---|
| Method | Risk | When |
| Escrow (Alibaba) | Lowest | New supplier |
| Letter of credit | Low | Large orders |
| T/T 30/70 | Medium | Established |
| Full upfront | Highest | Avoid |
Pair this with the negotiate and Alibaba guides for a complete payment wholesale playbook.
Materials & Construction
- Escrow Held til confirmed.
- LC Bank-backed.
- Contract PO + terms.
MOQ and Pricing
- Any MOQ Payment independent.
- Deposit 30% typical.
- Balance 70% pre-ship.
Margin check in the tote buyers guide; crossbody best sellers cover popular bulk merch.
Quality Control
- PO terms Clear in contract.
- Inspection Before balance.
- AQL 2.5 Pre-shipment.
Inspect at AQL 2.5 standards before shipment.
Where to Sell & First Order
- New importers Payment safety.
- Distributors Large orders.
- Amazon sellers Scaling.
Get a Sourcing Catalog & Quote
Get a safe-payment quote in 24h.
Frequently Asked Questions
What is the safest way to pay a new supplier?
Use Alibaba/Trade Assurance escrow or a letter of credit so payment is released on confirmation.
Is T/T 30/70 safe?
For established suppliers yes; for new ones prefer escrow or LC until trust is built.
Should I ever pay 100% upfront?
Avoid — full upfront wire to unknown factories is the top payment scam.