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How to Pay Chinese Suppliers by T/T
Payment (Bank Wire Transfer)

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What is a T/T payment?
A T/T payment is a
‘Telegraphic Transfer’ or ‘wire transfer’ of funds between banks using
the SWIFT system.
They are commonly requested by Chinese suppliers and are a standard
way for importers to transfer money abroad.
They are often made in another currency, for instance, USD.
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What to know about T/T payments
They’re pretty safe, SWIFT was developed in the 70s – global network
of banks that ‘talk to each other.’
You will likely pay fees to both the issuing bank and the receiving bank
for the transfer.
Payments will take about 3-5 days to clear.
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Fees!?
SWIFT payments usually incur fees, meaning that your T/T payment will not
be free.
These vary from bank to bank, but can include:
• Charge by issuing bank
• Charges by banks in the SWIFT networks that handle the payment
• Charge by receiving bank
• Markup on the exchange rate between currencies
It would not be unusual for fees to be US$25-50 per payment.
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Making your T/T payment (1)
Most banks, like HSBC, allow you to make your T/T payment online.
Fill out the exact information as requested, this often usually include:
• Recipient name
• Bank details including IBAN or BIC/SWIFT code
• Recipient address
• Recipient’s bank address
Save a transaction record and send it to the supplier.
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Making your T/T payment (2)
Be careful not to process the transfer with typos – this will hold up the
payment!
Chinese company names can be very long – make sure you write them
in full and in English. No errors!
Watch us fill out an example T/T payment here:
https://youtu.be/yBlZa9Uc2M4
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Payment terms
The more you can pay after shipment, the more favourable & secure
the term to you, the importer.
Some larger buyers pay by L/C on sight, or a 100% T/T payment 2
months in arrears after shipment.
Read more about payment terms in this post:
https://qualityinspection.org/payment-terms-chinese-manufacturer/
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Here is the usual
payment term that
Chinese manufacturers
request - 30% T/T
deposit, 70% T/T
payment after goods
have passed QC
inspection.

9.
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Similar payment term,
but a different end of
the process – a more
secure option for
importers because you
know your goods have
been shipped before
paying the remainder.

10.
How to negotiate payment terms?
It’s possible to negotiate better payment terms if:
• Your company is well-established and famous
• You arrange financing of your suppliers
• You have a buying office in China
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T/T FAQs (1)
Q: What should importers NEVER do?
A: Never pre-pay 100% of the order before production starts AND never wire the down payment
before having a relatively high certainty that the factory knows what you expect of them
Q: Are there scams to catch out importers sending T/T payments?
A: Yes, scammers send a fake invoice from ‘your client’ fooling you into wiring payments to them. Be
very careful and check against ‘real’ information before wiring.
Q: My supplier received a lower amount than we wired. How so?
A: It is likely that transfer fees were deducted from the final payment – you can choose to pay ALL
fees.
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T/T FAQs (2)
Q: My supplier wants me to wire a payment to their personal account. Is this OK?
A: Perhaps only for very small payments. In general you should demand an invoice from their
company and pay that company.
Q: My supplier wants me to send the payment to a different company. Is this a scam?
A: Probably not. Maybe they use a Hong Kong company to avoid declaring sales in China and reduce
tax, perhaps they have another company with an export license for your goods which their other
company doesn’t have, or maybe their SOP is to collect payments and do all export procedures
under another company.
Be safe! Get both companies to sign and stamp a joint declaration acknowledging that company B
collects your payment on behalf of company A.
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Catch our regular blog posts here: https://qualityinspection.org/blog/
We also blog at: https://www.sofeast.com/knowledgebase/
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