How to send payments to China

5 min read

When sending cross-border B2B payments, you’re at the mercy of exchange rates and processing fees, not to mention the preferences and requirements of your receiver.

Among the many ways to send money to China, you have to consider what works best for all parties, especially since China has so many different regions, banks, and his highly regulated. To minimize confusion, you’ll need a single solution to pay multiple suppliers. On top of the ease of use, cost, speed, and transparency are vital factors to consider when sending payments to China.

Does this sound like your current payments method?

Why China?

For many businesses, this is obvious. But let’s look at some numbers.

Imports from China to the US are off the charts. In 2016, $462.8 billion worth of goods were imported from China, growing to $539.5 billion in 2018. That makes China the United States’ largest supplier of goods imports.

Additionally, services imports totalled $18.4 billion according to the Office of the United States Trade Representative. Therefore, your business is likely to be involved with some sort of business with China currently, or in the future. S, you’ll probably need to send payments to business partners, suppliers, or manufacturers.

While there are a few boundaries and regulations when sending payments to China, Chinese banks are happy to accept foreign currency.

Trade war aside, business keeps growing, and money keeps flowing. In the midst of tension between China and the US, your payments shouldn’t be an added stress factor. How can you send payments to China with as little cost and hassle as possible, without sacrificing security? There are a few ways to send international payments.

How to send global payments to China

When sending payments to China from the US, your payment method may vary based on the frequency of your payments, and how well you know your receiver.

Among the many payment options (mailing cash, international credit cards, or bank wires), the issues are the same: lack of assurance and security.

Many services and agencies are established to counter these issues by using a middleman that holds the payment until the transaction is determined legitimate. This is called being “in-escrow.” In terms of security, issues with certain payment methods aren’t specific to China. The problem is with the payment method itself.

Bank wire transfers (Telegraphic Transfer or T/T)

Bank transfers are very popular and necessary for B2B payments because the process requires accountability on both ends of the payment.

An international wire transfer is a transaction between the sender’s bank (in one country) and the receiver’s bank (in another). Sounds pretty simple, right?

Unfortunately, the process is complicated, time consuming, and a bit pricey, especially if you’re sending payments regularly. The process is different in every country. In China, what’s required to receive money depends on the sender and the provider. Banks in China may require more than just some bank information.

Depending on the institution, and without the sender having an account with a Chinese bank or money transfer company, the “recipient may need to provide government-issued photo ID or a transaction confirmation number to receive your funds” every time a payment is sent. Although these are necessary security measures, you can see how the process is a little dated.

How does an international wire transfer work?

Payments are sent along the SWIFT network (Society for Worldwide Interbank Financial Telecommunications), which is used to communicate between banks and has made it possible to send money globally since the early ‘70s.

You’ve heard the expression “few and far between”? Well it’s a far distance between China and the US, but the intermediary banks between the countries are certainly not few. That means you’re spending a lot more money sending payments with each bank on the way.

The intermediary banks (or middle men) that relay your payments towards your receiver’s bank in China may each take a chunk of the payment for processing.

For this reason, bank wire fees are usually so painful for businesses that this method is losing popularity. Some businesses rely on money transfer services like Western Union, which is known for its convenient process, along with less fortunate features like high fees and lack of transparency and security.

There are hundreds of scam stories involving WU that you can read about with a simple Google search. In fact, the company itself has a webpage dedicated to identifying scammers that use their own product to wire money. While WU was at one time disruptive of the payments space, it hasn’t developed much over the past few decades.

Today, there are many solutions to the issues in international payments that are disrupting the space. Fintech solutions (financial technology), such as digital payment processors, have the means to improve user experience and minimize risk. They’re also the cheapest ways to send money.

Digital payments processors

What are they?

Digital payment processors and financial technology innovators (fintech) are disrupting the space for international payments. Platforms like Veem solve the long-standing issues involved in international money transfers. What makes digital payments processors so convenient and less expensive is their ability to sidestep bank wire fees, offer competitive exchange rates, and make the payments process simple.

See how Veem can make your business payments simple.


Networks like Veem only require you to enter your information once, and it can be entered by either side of the payment. This cuts substantial time and hassle when completing transactions, reduces friction, and streamlines communication in an often stressful process.

How can Veem save businesses money?

By far, the most convenient and trackable payments method involves online platforms or networks like Veem. They team up with your bank, taking over the responsibility of the wire transfer. Veem simplifies the complicated bank wire process in order to save you money and hassle.

Of course, users that are familiar with PayPal may use it for both business and personal money transfers. PayPal is almost second nature for B2C online transfers. But business is different. B2B payments are usually much larger and recurring. PayPal for businesses is only ideal for small transactions. However, with Veem there is no minimum or maximum payment, making it an ideal solution for both big and small transactions.

Veem’s Tariff Relief Program

Veem’s Tariff Relief Program helps soften the blow caused by raising tariffs between China and the US. US businesses can earn up to $10,000 toward tariff fees attached to goods purchased with Veem’s services.

Simplify your business payments with Veem.

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* This blog provides general information and discussion about global business payments and related subjects. The content provided in this blog ("Content”), should not be construed as and is not intended to constitute financial, legal or tax advice. You should seek the advice of professionals prior to acting upon any information contained in the Content. All Content is provided strictly “as is” and we make no warranty or representation of any kind regarding the Content.