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Sourcing Knowledge Center / Ask the Sourcing Experts / Is it OK to send payment directly to a seller’s bank account?
Full Question
Is it ok to send payment straight to a seller's account? The last time I ordered with this company I sent payment with Escrow. This time they asked me to pay straight to their bank account? Is this a good or bad idea?
Answer
I would be very concerned if the account they are asking you to pay to is a private account rather than corporate account. Check out this report on a scam where a 3rd party hacks the factory email and convinces the buyers to pay to a new account:
How to protect yourself from this China sourcing scam epidemic
As a rule of thumb,
a) Make sure the name on the contract is the same as bank account.
b) Don't send large payments to private accounts.
c) Visit the supplier for audits and inspections during your order.
Here are some related blog posts and short videos about sourcing safe from China:
http://www.smartchinasourcing.com/home/paying-suppliers.html
Video1: Finding suppliers
Video2: Evaluating suppliers
Video3: Negotiations
Video4: Project management and quality control
Video5: Protecting your intellectual property
Video6: Leveraging Global Sources
Video7: How to find and manage partners for logistics services
Video8: Avoiding Scams
Video9: Returning defective merchandise to China
Video10: Resolving a dispute
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