Before you send a deposit to a Chinese supplier, verify more than the account number. You need to connect the proposed payee to the legal company you have reviewed, confirm that the payment request is genuine, and use a controlled process whenever details change.

This is not only a China-sourcing issue. Payment diversion often begins with an email that looks legitimate but contains altered instructions. The FBI advises businesses to verify any change in account number or payment procedures with the person making the request, using a trusted contact method rather than details supplied in the email.[1] For an international supplier payment, that control should sit beside your business-license and contract checks.

Start with the legal company record

First, establish the supplier’s legal Chinese company name and Unified Social Credit Code from its business license. Then search the official Chinese enterprise registry and compare the record with the quotation, purchase order, and contract. New Zealand Trade and Enterprise recommends obtaining the legal Chinese name and business license, and notes that China’s official enterprise-information platform can be searched using an entity name, social credit number, or registration number.[2]

The legal company name matters because a supplier may use an English trading name that is not its registered name. Your contract and payment file should identify the Chinese legal entity clearly enough that you can match the recipient account to it.

A legitimate commercial arrangement can involve more than one company. For example, a trading company may sell the goods while a related factory makes them, or a group company may centralise export documentation. The point is not to reject every difference. The point is to understand it before the payment leaves your account.

Build one payment-verification file

Create a short file for each new supplier. Keep the documents together rather than relying on separate email threads.

| Item | What to capture | Why it matters | |---|---|---| | Legal entity | Chinese legal name, Unified Social Credit Code, and business-license copy | Identifies the company you intend to contract with. | | Registry check | Dated record of the company search and key matching details | Confirms that the company record supports the license. | | Contract party | Exact legal name used in the purchase order or contract | Connects the order to the right entity. | | Bank instructions | Beneficiary name, bank name, account number, SWIFT or other routing details, currency, and date received | Gives finance a complete payment record. | | Confirmation log | Who confirmed the instructions, through which independently sourced channel, and when | Shows that a payment change received a real check. |

This file is not a guarantee that every payment will be safe. It gives your team a process that can detect mismatches before they become expensive.

Compare the beneficiary name with the contract party

The first question is simple: does the beneficiary name match the legal company named in the contract?

If the names match, continue with the normal checks. If they do not match, pause and ask for a written explanation. Do not accept “this is our finance account” as a complete answer. Ask which entity owns the account, how it is related to the seller, why the payment is being requested there, and whether the proposed payee will appear on the commercial invoice and export documents.

Some situations require extra care:

  • A request to pay an individual rather than a company.
  • A request to pay a company in a different country.
  • A request to split payment between several beneficiaries.
  • A request to use a bank account that differs from the account shown on earlier documents.
  • A sudden request to pay in a different currency.

None of these facts automatically proves fraud or misconduct. They do mean the buyer should not release funds until the relationship and payment path are documented and verified independently.

Verify every payment change outside the email thread

Business email compromise can involve a criminal gaining access to a genuine mailbox or imitating an address with a small spelling difference. The FBI warns that scammers may use slight variations in email addresses and recommends that recipients carefully examine the address, URL, and spelling in correspondence.[1]

When a supplier sends new bank instructions, do not reply only to the same email thread. Use a phone number you obtained independently from an established contract, verified website, prior video call, or trusted contact record. Ask the authorised supplier contact to confirm the new instructions verbally. If your order is large, use a two-person internal approval process: one person verifies the change and another person approves the payment.

A useful confirmation script is direct:

> “We received revised payment instructions for Purchase Order [number]. Please confirm the legal beneficiary name, bank name, account number, currency, and the reason for the change. We are calling the number already in our supplier file, not the number in the email.”

Record the answer, date, and contact. If the supplier objects to a reasonable fraud-control step, treat that response as information about the relationship risk.

Check the commercial context, not only the account details

A bank-account check should make sense alongside the order. Before a payment, confirm the quote version, product specification, quantity, price, delivery term, sample status, and payment milestone. A request for a large balance payment before agreed production evidence, inspection, or shipping documents should trigger a commercial review even if the bank account itself appears unchanged.

For a first order, it is often sensible to connect payment milestones to visible evidence. The exact structure depends on the product and negotiation, but a buyer should understand what each payment releases and what documents or progress evidence support it. Avoid treating a pro forma invoice as proof that a product is ready or that the beneficiary has been independently verified.

If you are still establishing supplier identity, review the [supplier-verification page](/en/supplier-verification/) before proceeding. If the supplier claims to be a manufacturer, the [factory-visit guidance](/en/factory-visits/) can help you plan a separate production-evidence check.

Set a controlled process before anyone changes details

Most payment mistakes are easier to prevent than recover. Put the following rules in your internal process before a new supplier starts sending invoices:

1. Store the approved beneficiary details in a controlled vendor record. 2. Require written bank details on a company document that identifies the legal entity. 3. Verify any new supplier or changed payment instruction through an independently sourced contact method. 4. Separate the person who verifies a change from the person who releases the transfer when practical. 5. Keep a dated audit trail of the request, confirmation, and approval. 6. Escalate unusual circumstances rather than allowing a rushed exception.

The FBI specifically cautions against acting quickly because a requester is pressing for urgency.[1] In sourcing, urgency can be real—a shipment cutoff, a public holiday, or a production slot may be involved. That still does not remove the need to verify payment instructions. If the deadline is genuine, a legitimate supplier should be able to confirm the details through a trusted channel.

Know what this process does not prove

Verifying a company name and bank instructions does not prove that a supplier can make your product, meet your quality standard, or deliver on time. It also does not replace sanctions screening, tax advice, trade-finance advice, or legal review for a high-value transaction.

Use payment verification as one layer. Combine it with legal-entity checks, product specification, sample approval, production evidence, quality controls, and a clear purchase order. The objective is not to create paperwork for its own sake. It is to make sure that the legal seller, product agreement, payment recipient, and evidence trail fit together.

For a structured conversation about a first purchase, start with the [Project Brief Builder](/en/start-project/).

Frequently asked questions

### Should I pay a Chinese supplier’s personal bank account?

Do not treat a personal account as interchangeable with the legal supplier’s corporate account. Pause the payment and obtain a written explanation, then verify the relationship independently. For significant orders, obtain professional legal or banking advice before proceeding.

### What should I do if my supplier changes bank details by email?

Do not rely on the email thread alone. Use a phone number or contact route already stored in your verified supplier file, confirm the details verbally, record the confirmation, and apply your internal payment-approval process.

### Does a matching bank beneficiary name mean the payment is safe?

No. It is one useful check. You still need to verify the supplier’s legal identity, the authenticity of the payment request, the commercial reason for the payment, and the order documents.

Sources

[1]: [Federal Bureau of Investigation, “Business Email Compromise”](https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/business-email-compromise).

[2]: [New Zealand Trade and Enterprise, “Conducting due diligence in China”](https://my.nzte.govt.nz/article/conducting-due-diligence-in-china), reviewed 3 December 2025.