T/T Payment (Bank Transfer) to China: Step by Step

You've found a supplier on Alibaba, negotiated a price, and now they're asking for a T/T payment (bank transfer) to China. Your stomach tightens. You've heard horror stories: suppliers disappearing after payment, banks holding funds for weeks, exchange rates eating your margin. This article is your step-by-step playbook. By the end, you'll know exactly how to execute a T/T payment to China, what it will cost, how long it takes, and how to protect yourself from the most common traps. Let's start.

What Is T/T Payment and Why Chinese Suppliers Prefer It

T/T stands for Telegraphic Transfer, though in practice it means a simple bank-to-bank wire transfer in US dollars (or your local currency if convertible). Chinese suppliers love T/T because it's fast, irreversible, and cheap for them. Unlike letters of credit (L/C), which require paperwork and bank fees, T/T puts cash in their account in 2–5 business days. For you, the buyer, T/T offers simplicity — no complex documents, no bank delays — but carries risk because once the money leaves your account, getting it back is nearly impossible.

Most Chinese suppliers will quote you a T/T payment term like '30% deposit, 70% before shipment' for first-time buyers. This is standard. The deposit covers their material costs; the balance secures the goods before they ship. For repeat buyers with trust, terms may shift to '30% deposit, 70% against copy of B/L' (bill of lading), meaning you pay after they prove the goods are on the water.

Typical T/T Payment Terms for First Orders

30% deposit, 70% before shipment: Most common for new buyers. You pay the balance after production but before the container leaves the factory.
30% deposit, 70% against copy of B/L: Better for you. You pay after the supplier proves the goods have been loaded onto the vessel. Requires trust.
50% deposit, 50% before shipment: Some suppliers demand this for high-value or customized orders. Negotiate down if possible.
100% T/T in advance: Avoid this unless the supplier is verified and the order is under $500. High risk of fraud.

Step 1: Verify Your Supplier Before Sending a Single Dollar

Never send a T/T payment to a supplier you haven't verified. Fraud is rampant in cross-border trade, especially for first-time importers in Africa and emerging markets. Scammers create fake Alibaba storefronts, clone real supplier websites, and use stolen photos. One Nigerian importer I know lost $12,000 to a supplier who vanished after receiving the 30% deposit. Verification takes 30 minutes and costs nothing if you do it yourself.

Check the supplier's business license: Ask for a photo of their Chinese business license (营业执照). Use Google Translate to confirm the company name matches their Alibaba profile.
Request a video call: Use WeChat or WhatsApp. Ask to see the factory floor, their office, and the actual products. A fake supplier will make excuses.
Search for reviews: Look on Alibaba's supplier page for transaction history and ratings. A supplier with fewer than 10 transactions is a red flag.
Use a third-party verification service: Companies like SGS, QIMA, or AsiaInspection offer factory audits for $300–$500. Worth it for orders over $5,000.
Cross-check the bank account name: The beneficiary name on their invoice must match their business license. If it's a personal account, ask why.

Step 2: Get a Proforma Invoice and Confirm Payment Details

Once you're satisfied the supplier is real, ask for a Proforma Invoice (PI). This is not a real invoice — it's a quotation that becomes a contract when you accept it. The PI must include: supplier's full company name and address, your company name, product description, quantity, unit price, total amount, payment terms (e.g., 30% deposit, 70% before shipment), delivery date, and the supplier's bank account details. Never accept a PI that's missing any of these.

Double-check the bank details on the PI against the supplier's business license and any previous communication. A common scam is the 'man-in-the-middle' attack: a hacker intercepts your emails, sends you a fake PI with their own bank account, and you wire money to a criminal. To prevent this, call your supplier on WeChat or WhatsApp to verbally confirm the bank account number before you send any payment. Do this every time, even for repeat orders.

What to Check on the Proforma Invoice

Beneficiary name: Must match the business license exactly. No abbreviations.
Bank name and branch: Common banks for Chinese suppliers include Bank of China, ICBC, China Construction Bank, and Agricultural Bank of China.
SWIFT/BIC code: An 8-11 character code. Verify it on the bank's official website.
Account number: Usually 16–19 digits for Chinese banks. Confirm by phone.
Currency: Most Chinese suppliers quote in USD. If they quote in CNY, ask for the USD equivalent to avoid exchange rate surprises.

Step 3: Choose Your Payment Method and Calculate the Real Cost

You have two main options: direct bank wire from your bank, or a third-party service like Wise (formerly TransferWise), Payoneer, or Alibaba's own payment platform (Alibaba Trade Assurance). Each has different costs, speed, and security. For most importers in Africa and emerging markets, direct bank wire is the cheapest option for large amounts (over $5,000), but third-party services offer better exchange rates and faster transfers for smaller sums.

Direct bank wire: Your local bank charges a sending fee ($20–$50), intermediary banks charge a handling fee ($15–$30), and the receiving bank in China charges an incoming fee ($10–$25). Total cost: $45–$105 per transfer. Takes 3–7 business days.
Wise (TransferWise): Charges a transparent fee of 0.5–1% of the amount, plus a small fixed fee ($5–$10). Exchange rate is mid-market. Takes 1–3 business days. Best for amounts under $10,000.
Payoneer: Charges 1–2% fee. Good if you already use Payoneer for other transactions. Takes 2–5 business days.
Alibaba Trade Assurance: If you found the supplier on Alibaba, use this. Alibaba holds your payment until you confirm receipt of goods. Costs 0.5–1.5% of the order value. Adds 7–14 days to the process but eliminates fraud risk.

Example: You're sending $5,000 to a Chinese supplier. A direct bank wire from a Nigerian bank will cost about $80 in fees and take 5–7 business days. Using Wise, the fee is $35 and the transfer arrives in 2 days. For $20,000, a direct wire costs $100, while Wise costs $120 — the direct wire is cheaper for larger amounts. Always compare.

Step 4: Execute the Payment and Track It

Once you've chosen your method, initiate the transfer. For a direct bank wire, go to your bank (online or in branch) and fill out the wire transfer form. You'll need: the supplier's bank name, SWIFT/BIC code, account number, and beneficiary name. Double-check every digit. A single wrong number can send your money to a stranger's account, and recovery is nearly impossible.

After you submit, you'll get a SWIFT confirmation (MT103) from your bank. This is proof that the money was sent. Forward this to your supplier immediately so they can track it on their end. The money typically arrives in 2–5 business days for direct wires, 1–3 days for Wise. If it's delayed beyond 7 business days, contact your bank and ask for a 'trace' on the SWIFT transfer. This costs $20–$40 but can locate the funds.

Log into your bank's online portal or visit a branch.
Select 'International Wire Transfer' or 'Telegraphic Transfer'.
Enter the supplier's bank details exactly as on the PI.
Enter the amount in USD (or agreed currency).
Review and confirm. Save the SWIFT confirmation receipt.
Send the receipt to your supplier via WeChat or WhatsApp.

Step 5: Confirm Receipt and Release the Balance

After the supplier confirms they received the deposit, ask for a payment receipt from their bank. This is a screenshot or PDF showing the deposit credited to their account. Then, production begins. You should request regular updates: photos of raw materials, production line videos, and final product photos before shipment. For orders over $10,000, consider hiring a third-party inspection company like QIMA ($200–$400 per inspection) to check quality at the factory before you release the balance.

When production is complete, the supplier will send you photos or a video of the finished goods, packed and ready. If you're satisfied, you release the 70% balance via the same T/T method. Never release the balance before you have visual proof of the goods. For high-value orders, insist on a 'copy of B/L' term — you pay after they send you the bill of lading proving the goods are on the ship.

Common Mistakes When Sending T/T Payments to China

Skipping supplier verification: You lose money to a fake supplier. Always verify the business license and do a video call before sending a deposit.
Ignoring the SWIFT fee structure: You think the transfer costs $30, but intermediary banks add $50 in hidden fees. Ask your bank for the full cost breakdown upfront.
Paying 100% in advance: Even for small orders, this is risky. A $500 loss still hurts. Negotiate at least a 30% deposit, 70% balance.
Using a personal bank account for business payments: Some African banks flag large transfers to personal accounts in China as suspicious. Use a business account or a service like Wise.
Not confirming bank details by phone: Hackers intercept emails and change account numbers. Call your supplier on WeChat to confirm the account number before every payment.
Forgetting to track the transfer: You send money and wait. If it doesn't arrive in 5 days, you panic. Track it using the SWIFT reference number to avoid delays.

Conclusion: Your Next Steps

T/T payment to China is straightforward if you follow the steps: verify the supplier, confirm bank details by phone, choose the cheapest transfer method, and never pay the full amount upfront. Your three biggest takeaways: (1) always use a third-party inspection for orders over $10,000, (2) compare Wise vs. direct wire for every transfer, and (3) verbally confirm bank account numbers before sending. Now, open your supplier's PI, check the bank details, and start your first T/T transfer with confidence.