Quick answer
Most Indian importers pay Chinese suppliers by bank transfer (T/T) through their bank, usually 30% deposit and 70% before shipment, after a pre-shipment inspection. For large orders a letter of credit (LC) gives more protection. Always pay the company account named on the business licence, never a personal account, and confirm any new bank details by phone on a number you already had.
Payment methods compared
| Method | Best for | Protection |
|---|---|---|
| Bank transfer (T/T) | Most orders | Low on its own; depends on verification and payment terms |
| Letter of credit (LC) | Large orders | High: the bank pays only against agreed documents |
| Alibaba Trade Assurance | Orders placed on Alibaba | Some dispute protection if paid through Alibaba |
| Card / PayPal | Samples | Chargeback options, but higher fees |
Payments for imports go through your bank (an authorised dealer), which will ask for the proforma invoice and your IEC.
Standard payment terms
- 30% deposit to start production, 70% balance before shipment, the most common term.
- Pay the balance only after a pre-shipment inspection passes. Once you have paid 100%, you lose your leverage. See our AQL inspection guide.
- For repeat orders with a trusted supplier, you can negotiate balance against copy of B/L.
- Avoid 100% upfront for anything but small samples.
Check the account before you pay
- The account name must match the company name on the business licence and on your proforma invoice.
- Be careful with payments to a personal account or a different company "in Hong Kong for tax reasons".
- Get the bank details on the company letterhead or PI, not just in a chat message.
Not sure the company is real? Follow our supplier verification guide first.
The bank-change scam
The most common payment fraud in importing: an email arrives from your supplier's address, or a look-alike, saying "we have changed our bank account", just before a payment is due. Often the supplier's email has been hacked.
- Never change bank details based on an email or chat alone.
- Call your contact on a phone number you already had, not one in the new email.
- Ask for a new PI on letterhead, and check the new account name matches the licence.
Money sent to a fraudster's account is very hard to recover. One phone call prevents it.
Frequently asked questions
What is the safest way to pay a Chinese supplier?
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For large orders, a letter of credit. For normal orders, a bank transfer to the verified company account with a 30/70 split and the balance paid only after inspection.
Is it safe to pay through Alibaba?
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Paying through Alibaba's Trade Assurance gives some dispute protection, but only when you pay through the platform. Payments made outside Alibaba are not covered.
What should I do if I paid a scam account?
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Contact your bank immediately to request a recall, report it to the cybercrime portal, and keep all emails and documents. Speed matters.
This guide is general information, not legal or customs advice. Duty rates and import rules change — confirm current requirements for your HS code with DGFT, CBIC or a licensed customs broker.
