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How to Pay Suppliers in China?

Last update: September 22, 2025

Contents

Learn the different ways to pay suppliers in China and the risks and costs involved with each

Key takeaways

Always perform due diligence when you are partnering with a new supplier
The top methods to pay suppliers in China include bank transfers, escrows, credit/debit cards, and multi-currency accounts
WorldFirst offers a multi-currency through which, you can pay interbank suppliers at low transaction fees and competitive exchange rates
World Pay is also the only authorised international payment provider to pay suppliers on 1688.com

Dealing with suppliers based in China can seem daunting when your business is located in Australia and you have never met them face-to-face. There are a lot of factors to consider, including product quality, international shipping, and supplier payments.

The payment method you choose for international transfers must be fast, secure, and cost-effective. The transfer fees and currency exchange rates shouldn’t cut through your already razor-thin profit margins.

Let’s look at the different payment methods online sellers can use to pay suppliers in China.

Before you pay suppliers: Top tips to ensure credibility

Always perform due diligence when you are partnering with a new supplier. Review the supplier’s information to reduce any risks related to fraud, scams, or low-quality products.

Here are a few tips to ensure supplier credibility:

Find suppliers from reliable sources: The easiest way to find suppliers is to check some of the leading B2B marketplaces in China, like 1688.com and Alibaba.

These online marketplaces list products offered by Chinese suppliers with details about their factories, turnaround times, and previous order fulfillment performance. You can also check reviews left by other buyers.

Request product samples: When sourcing products for the first time from a new supplier, always request a product sample to assess the quality before placing a bulk order.

Evaluate the factories: Visit the supplier’s factory in person or hire a third-party inspection service to assess the products and facilities thoroughly. Marketplaces like 1688.com inspect selected suppliers on their platforms and provide detailed reports on them.

Check the supplier’s background: Look into the supplier’s reputation, previous customers, Chinese business license, and overall online reputation.

Send money to a business account only: Experienced and reliable suppliers in China have a business license and a registered business bank account. If a supplier shares personal account details with you, it can be a red flag.

Partner with a sourcing agent: You can also hire a sourcing agent to manage the entire product sourcing process on your behalf. They can find suppliers, check product quality, negotiate prices, and manage shipping.

Different ways to pay suppliers in China

1. Bank transfers

You can choose to pay Chinese suppliers directly through your bank account.

But banks can be slow when you are sending international payments. It can take anywhere between a few days to a week for a foreign remittance to get cleared. There is usually a transaction fee for international transfers, which can vary depending on the type of currency and mode of transfer.

Banks also add their margin to the live currency rates. This means you might end up paying high fees even for small transactions.

Before making any transfer, check your bank’s foreign transaction fee and ensure you can protect your profit margins. If you are barely making any profit after paying the product costs, shipping costs, and bank transfer fees, then you may want to look at other alternatives.

2. Escrow

Escrows are offered by limited B2B marketplaces like Alibaba to provide additional protection to international buyers.

Alibaba’s Trade Assurance payment service offers a secure way for international buyers to place orders with suppliers and protect themselves against unforeseen circumstances.

When you pay for an order, the payment is held in escrow by Alibaba and it is only released to the supplier after you confirm you have received the products in good condition.

In case of a dispute or an issue, Alibaba assists in reaching a resolution through refunds or compensation.

But escrow payments limit you to the suppliers on the Alibaba marketplace who are a part of the Trade Assurance program. Alibaba also charges payment processing fees and currency conversion fees that depend on the mode of payment and your base currency.

3. Secure multi-currency accounts

A multi-currency account allows you to send, hold, and receive funds in various foreign currencies without opening separate bank accounts for each currency.

With a multi-currency account like the World Account, you can make same day supplier payments to China (cut timings apply)..

One World Account lets you set up local currency accounts in 15+ currencies, including GBP, USD, CAD, EUR, AUD, NZD, and CNH. Local currency accounts are created under your business’s name. For every currency, you get a separate account number and branch code.

Businesses can send payments in 40 currencies and get access to competitive exchange rates.

With a World Account, you can:

Pay suppliers faster: Send same-day or next-day payments at competitive rates (Cut off times apply)
Securely pay 1668 suppliers: World Pay is the only way to securely make international payments to suppliers on 1668.com
Protect your profit margins: Lock-in exchange rates for up to 24 months through forward contracts
No hidden fees: Transparent and competitive transaction fees to collect, convert, and manage funds in multiple currencies
Instant payments: Payments are free and instant between World Accounts
Security-first: WorldFirst safeguards customer funds in segregated accounts with leading financial institutions. It offers real-time fraud monitoring and your login is secured with two-factor authentication via the Authy app
Collect from marketplaces: Collect payments from 100+ global marketplaces, including Amazon, AliExpress, Etsy, and eBay. Hold the funds to pay suppliers or withdraw funds to your bank account anytime

4. International credit or debit cards

Some Chinese suppliers can share payment links so that you can make credit card or debit card payments. You can also use credit cards on marketplaces like Alibaba and AliExpress

Although international card payments are not allowed on 1688.com, you can pay 1688 suppliers through World Pay instead.

The obvious issues with international cards are the high transaction costs, markup fees, and currency conversion rates that can quickly decrease profit margins.

→ If you have a World Account, you can issue up to 20 World Cards for your team, which are Visa-powered debit cards that let you spend from your multi-currency balances. There are no foreign transaction fees if you make payments in the 15 supported currencies (as long as you have sufficient balances).

Do you need a Chinese bank account to pay suppliers in China?

Short answer: No.

As an international buyer, you don’t need a Chinese bank account to pay local suppliers. In fact, it’s incredibly difficult for foreign businesses to open a Chinese bank account without having a registered legal entity in China.

Unless you’re operating on the ground in China or hiring local talent, there’s no real benefit in trying to open a local Chinese bank account. Stick with regulated payment partners that let you directly pay suppliers in China while offering transparent fees, currency support, and fraud protection.

Common issues when paying suppliers in China (and how to avoid them)

Paying suppliers in China isn’t as simple as entering bank details and clicking ‘send.’ International payments involve multiple layers, including different currencies, banks, and regulations. Even small missteps can result in delays, frozen funds, or lost payments.

Here are some common issues to watch for:

Intermediary banks and hidden fees

Many international wire transfers go through intermediary banks before reaching your supplier’s bank account in China. Each step can introduce delays or incur additional fees on the transferred amount, which directly affects your margins.

How to avoid it: While it cannot be completely avoided or even minimized sometimes, you can consider using a cross-border payment provider like WorldFirst that eliminates hidden intermediary charges and makes sure the full amount reaches your supplier.

Miscommunication and language barriers

When working with suppliers in China, communication gaps can happen, especially around payment instructions. It’s not that suppliers don’t communicate clearly; it’s just that English may not be their first language, and some details can get lost in translation.

This can sometimes lead to small errors in banking details or misunderstandings about how and when payments will be received.

How to avoid it: Share payment details using screenshots, translated templates, or bilingual documents.

Incorrect bank information

A single-digit mistake in a SWIFT code or account number can result in bounced payments, shipping delays, inventory issues, and so much more.

How to avoid it: Always request a stamped bank information letter from your supplier and validate it with your payment partner before sending money.

Currency mismatches

Paying in the wrong currency can lead to refusal or delays. Many suppliers prefer to be paid in Chinese yuan, others Chinese suppliers prefer USD payments. Since China actually has two currencies, it can lead to even more confusion for businesses new to sourcing from the region.

How to avoid it: Choose a payment provider that supports CNY payments or allows you to hold offshore RMB (CNH) for smoother transactions.

How to pay 1688 suppliers from Australia

For Australian and other international buyers using 1688.com, the two most reliable payment methods are:

International credit/debit cards (limited support)
World Pay (跨境宝) by WorldFirst (the official cross-border payment service for 1688.com)

Some suppliers may offer PayPal or offline bank transfers, but these are often not supported by 1688.com’s buyer protection and can be risky, especially when working with new suppliers.

Why use World Pay?

World Pay, powered by WorldFirst, is the only official cross-border payment partner of 1688.com, offering a seamless and secure way for international buyers to make payments in Chinese yuan.

Benefits of using World Pay:

Official integration with 1688.com: WorldFirst and 1688 are both part of the Alibaba Group. They are closely integrated and offer buyers outside China a secure and fast way to pay 1688 suppliers
Competitive FX rates: You get access to competitive exchange rates
Faster payment processing: Funds often reach the supplier instantly
Access to 1688’s buyer protection: Your order is covered under the same guarantees as local buyers
Avoid payment rejection: Suppliers are more likely to accept World Pay transactions than unknown wire transfers

You can setup World Pay and directly pay suppliers on 1688 in four easy steps

Open a World Account with WorldFirst
Top up your World Account with CNH
Connect your 1688.com account with your WorldFirst account
Pay for orders directly through World Pay using the funds in your World Account.

Tip: Maintain a CNH (offshore Chinese yuan) balance in your World Account to ensure automatic payments are processed without delay.

Setup a World Account for fast and secure supplier payments

FAQs

Can I pay Chinese suppliers in AUD?

Yes, you can pay Chinese suppliers in AUD by using a multi-currency account like WorldFirst. You simply fund your account in AUD and convert it to CNY or CNH to pay suppliers.

How long does it take to transfer money to China?

The transfer time depends on your payment method. Traditional international bank transfers can take 2–5 business days (or more) due to intermediary banks and time zone differences.

In contrast, platforms like WorldFirst offer fast processing—payments to 1688.com suppliers via World Pay are often instant or completed within a few hours. You can also make same-day transfers (cut-off timings apply) and next-day transfers.

Is WorldFirst safe for payments to China?

Yes, WorldFirst is a secure and regulated cross-border payment provider. Payments made through WorldFirst follow strict anti-fraud and compliance checks. For added reassurance, you also get customer support to help resolve any payment-related issues with your Chinese supplier.

Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.

Based in Sydney, Jim is responsible for the WorldFirst business across Australia and New Zealand. He brings with him over 25 years of experience helping Business Owners, CFO’s and Treasury Managers overcome the challenges with cross border payments and navigating volatile foreign exchange markets.

Jim Vrondas

Author

Country Manager ANZ at WorldFirst

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How to Pay Suppliers in China?

Before you pay suppliers: Top tips to ensure credibility