By SupplierVerify Team | Published: April 4, 2026
Telegraphic transfer — T/T, or simply "wire transfer" — is the default payment method for international trade with China. It's fast, universally accepted, and cheaper than a letter of credit. It also gives the sender almost zero protection. Once a T/T leaves your bank account and lands in a Chinese account, reversing it requires the recipient's cooperation — which scammers, by definition, will not provide. Understanding T/T-specific risks, and layering verification before every wire, is the single most impactful thing you can do to protect your sourcing budget. Here's what you need to know.
T/T has become the standard for China sourcing because it's simple, the fees are low (typically $25–$50 per transfer), and Chinese suppliers strongly prefer it. Letters of credit (L/C) are available but add cost and complexity that make them impractical for orders under $50,000–$100,000. PayPal offers buyer protection but is rarely accepted by Chinese factories for B2B transactions. Alibaba Trade Assurance provides some coverage but has significant gaps (which we've documented separately). The result: most buyers are sending T/T payments with no escrow, no intermediary, and no mechanism to recover funds if the supplier fails to deliver. The payment method is structurally buyer-unfriendly. That doesn't mean you shouldn't use T/T — it means you need to front-load your protection into the verification stage because there is no meaningful protection after the money moves.
The supplier's invoice says "Pay to: Shenzhen FirstClass Electronics Co., Ltd." but the bank account beneficiary is "Zhang Wei" (a personal name) or "Dongguan Hongda Metals" (a different company). This is the single most common payment red flag — and the one buyers most often ignore because "the supplier explained it." Common explanations: "It's our export agent's account," "It's the boss's personal account — easier for foreign currency," "It's our Hong Kong company — we use it for all international payments." Some of these explanations can be legitimate. A Chinese factory may legitimately use a related Hong Kong entity to receive foreign currency. A small workshop may legitimately use the owner's personal account. But the burden of proof is on the supplier. Before sending money to an account that doesn't match the business license, you must independently verify the connection between the legal entity and the account holder — not take the supplier's word for it. If you can't verify the connection, don't send the money.
A T/T payment to China is effectively irreversible once credited to the recipient's account. Unlike credit card transactions, there is no chargeback mechanism. Unlike platforms like PayPal or Alibaba, there is no dispute resolution system that can freeze funds. Your bank can send a recall request, but the recipient's bank in China is not obligated to comply — and Chinese banks almost never reverse a completed transaction without the account holder's consent or a Chinese court order. The practical implication: treat every T/T as a one-way transaction. The money is gone the moment it arrives. Your only protection is what you verified before you sent it.
Some suppliers — especially on a first order — will ask for 100% payment upfront. The justifications vary: "small order, not worth splitting," "company policy for new customers," "we need full payment to purchase raw materials." Whatever the reason, 100% upfront eliminates your leverage. If the supplier delivers defective goods, ships late, or doesn't ship at all, you have no remaining payment to withhold. The industry standard for first orders is 30% deposit, 70% balance against copy of shipping documents or after pre-shipment inspection. If a supplier insists on 100% upfront for a first order, walk away. For repeat orders with a trusted supplier, 50/50 or 100% upfront may be acceptable — but never on a first transaction.
You've agreed on payment terms, received an invoice with bank details, and are ready to send the deposit. Then an email arrives: "Please note our bank account has changed. Use these new details." This is either a legitimate administrative update or a business email compromise (BEC) attack where a scammer has intercepted the communication and is redirecting your payment to their own account. Treat every mid-transaction bank account change as a red flag until proven otherwise. Verify through a completely independent channel — call the supplier's main phone number (not the number in the email), send a message through their Alibaba storefront (not the email thread), or ask for a video call where they show you the updated bank documentation. Never accept a bank account change communicated solely through the same email thread as the original negotiation.
Many Chinese suppliers ask buyers to send T/T payments to a Hong Kong bank account rather than a mainland Chinese account. There are legitimate reasons for this: Hong Kong has no foreign exchange controls, making it easier for Chinese companies to receive and hold foreign currency. But there are also fraudulent reasons: a Hong Kong account can mask who is actually receiving the money, and Hong Kong companies are separate legal entities governed by Hong Kong law — meaning a judgment against the mainland Chinese company may be unenforceable against the Hong Kong entity that actually received your funds. Before wiring money to a Hong Kong account, verify: who owns the Hong Kong entity, whether the shareholders of the Hong Kong entity overlap with the shareholders of the mainland Chinese company, and whether your contract is with the mainland entity, the Hong Kong entity, or both. If the supplier cannot clearly document the connection, you are sending money to a legally separate entity with no contractual relationship to you.
A variation on the account mismatch: the supplier asks you to send payment to a third party's account — "our logistics partner," "our raw material supplier," "our agent's account." This should set off alarm bells. You have no contract with the logistics partner or raw material supplier. If the goods don't arrive, you cannot sue a company you have no agreement with — and the company you do have an agreement with will claim they never received your payment (which is technically true; someone else did). Never send payment to a third party you don't have a direct contractual relationship with. If the supplier has cash flow issues that require you to pay their vendors directly, they have bigger problems than your payment structure can solve.
After you send the deposit, the supplier contacts you: "The bank is charging an extra 3% processing fee for international transfers. Please send an additional $XXX to complete the transaction." Or: "The funds are held by Chinese customs — we need a release fee." This is almost always a scam. International wire transfer fees are deducted at the time of transfer or are predictable and disclosed upfront. Chinese customs doesn't hold incoming wire transfers. What's actually happening: the scammer has your deposit and is trying to extract more money before you realize you've been defrauded. The more you send, the more they'll ask for. If you receive an unexpected request for additional fees after sending payment, assume it's fraudulent until independently verified.
The beneficiary name on the bank account must match the legal name on the business license, character for character. If they don't match, you need a verified explanation — not just the supplier's word — before sending money. For Hong Kong or offshore accounts, verify the ownership connection between the receiving entity and the mainland operating entity.
30% deposit is the market standard for first orders. If the supplier demands more, negotiate or walk. Retaining 70% until you've confirmed the goods exist and meet specifications is not unreasonable — it's standard industry practice. A supplier who refuses standard terms is signaling that they know you'll want leverage later, and they don't want you to have it.
Confirm payment instructions through at least two channels: email plus a video call where they show you the bank document on screen, or email plus a message through their Alibaba storefront. Once confirmed, treat any change to those instructions as hostile until proven otherwise — verify through a completely different channel than the one that communicated the change. This single practice prevents most BEC payment redirection scams.
The amount on the wire transfer, the invoice, and the contract should match exactly. Save: a copy of the contract, the invoice showing bank details, the wire transfer confirmation, and any communication about payment instructions. If the supplier later claims you underpaid or sent money to the wrong account, this documentation is your defense.
The most common phrase in buyer fraud reports is some variation of "something felt off, but I sent the money anyway." Your checklist — bank account matches license, payment terms are standard, instructions verified through two channels, account hasn't changed mid-transaction — is more reliable than your gut feeling about whether the supplier "seems professional." Scammers are professional. That's how they make a living. Trust the verification, not the vibe.
If you suspect you've sent money to a fraudulent account, act immediately — the first 24–48 hours are critical. Contact your bank and request a wire recall — emphasize that you believe the transaction is fraudulent (banks take fraud claims more seriously than buyer's remorse). File a report with your local law enforcement and obtain a case number — this may be required for escalation. Contact the recipient bank directly if you can identify it and report the fraud — they may freeze the account if they receive multiple complaints. Report the supplier to the platform where you found them (Alibaba, Made-in-China, etc.). Document everything: the original communication, the payment instructions, the wire confirmation, and any subsequent messages from the supplier. For significant amounts, consult a Chinese lawyer — while recovery is difficult, it is not always impossible, especially if the recipient is a real company that can be sued in Chinese courts. The key variable is whether the entity you sent money to is a real, identifiable legal entity or a phantom. That distinction is exactly what pre-payment verification is designed to determine.
Our Safety Shield report confirms the legal entity behind the bank account — so you know who is actually receiving your money before you send it. For high-value orders, combine with Reality View to confirm the factory exists, operates, and matches the entity on the invoice. Because once the wire leaves your account, the cost of discovering you were wrong is approximately the amount you sent.
Verify Before You Wire