Bank of China Wire Transfer to Chinese Suppliers: Step-by-Step Guide

A T/T (Telegraphic Transfer) is still the dominant way buyers pay Chinese factories — and still the way most buyers lose money to avoidable mistakes. Wrong beneficiary name, intermediary bank deductions you didn't account for, SWIFT messages that bounce because the address line is too long. None of these are exotic problems. They're routine, and a 30-minute setup gets them right.

This guide walks the actual sequence: from getting verified beneficiary details to confirming receipt with the supplier.

Key Takeaways

• For most US-buyer-to-China-factory transactions, a T/T via SWIFT to Bank of China (or another major Chinese bank) is still the standard mechanism — fast, traceable, and accepted by every legitimate factory.
• Total cost of a single T/T usually lands at USD 35–75 all-in: your sending bank's outgoing wire fee ($25–50), one or two intermediary correspondent bank fees ($10–25 each), and Bank of China's incoming fee (typically waived or RMB 0–50 for the beneficiary).
• The single most common failure is beneficiary name mismatch between the wire instructions and the supplier's actual bank account name (which must match the Chinese legal entity name on their business license character-for-character).
• Always do a small test wire (USD 100–500) before the full deposit, especially with a new supplier — confirm receipt by phone or video, then send the balance.
• Section 122's universal 10% tariff (effective February 24, 2026) doesn't change wire mechanics, but the post-Trump-Xi summit environment means more buyers are also exploring alternate payment rails (cross-border CNH wallets, Alipay business accounts) — covered in our next article.

Why T/T Is Still the Default (Despite Newer Options)

PingPong, WorldFirst, Wise, Airwallex, and Payoneer have all built B2B China payment products in the past decade. They are excellent for certain use cases. But for the typical scenario — US or EU buyer wiring a deposit to a Chinese factory's USD account at Bank of China, ICBC, China Construction Bank, or China Merchants Bank — a SWIFT T/T from your business bank account is still:

1. Universally accepted. Every Chinese factory, regardless of size or city, has a USD-denominated bank account at one of the four major banks and accepts SWIFT wires. Some smaller or newer factories don't yet have onboarded fintech receiving accounts.

2. Auditable. SWIFT messages produce an MT103 confirmation that you can request from your bank. This document is what insurance companies, customs brokers, and disputes attorneys ask for if anything goes wrong.

3. Fast enough. Same-day or next-business-day delivery in most cases. Cross-border wires from the US to China typically settle in 1–3 business days, faster than the ACH or check alternatives.

The case for switching to a fintech rail (PingPong, WorldFirst, Wise) usually rests on lower FX cost on conversions or lower fees on small high-frequency payments. For a single deposit-and-balance pair on a five-figure order, the dollar savings is small relative to the operational risk of mis-routing the payment. The next article in this series compares the four major fintech alternatives in detail.

Common Mistake: Treating the wire setup as a one-time chore. Wire details should be re-verified before every significant payment, especially if there's been any email activity from the supplier in the days before. Compromised supplier email accounts are the most common channel for "man-in-the-middle" wire fraud — the attacker doesn't need to break into the bank, they just need to intercept the email where banking details get communicated.

Step 1: Get Verified Beneficiary Information

Request these five pieces of information directly from the supplier, ideally on factory letterhead with a chop:

1. Beneficiary name — must be the supplier's full legal entity name as it appears on the business license. In Chinese characters, with English transliteration. SWIFT systems accept both.

2. Beneficiary bank name — full official name (e.g., "Bank of China, Shenzhen Branch" not just "Bank of China").

3. Beneficiary bank SWIFT/BIC code — typically 8 or 11 characters (e.g., BKCHCNBJ900 for Bank of China Shenzhen).

4. Beneficiary account number — usually 16–18 digits.

5. Beneficiary bank address — full street address of the branch.

Cross-check the beneficiary name against the supplier's business license. Modern business licenses print the Unified Social Credit Code (统一社会信用代码) at the top, followed by the 18-character code. The legal name on the bank account must match the legal name on the license character-for-character. Any mismatch — different city, different "Co., Ltd." vs "Limited", different transliteration — is a stop signal.

Expert Tip: Confirm the bank account belongs to the same legal entity as the contract by asking the factory to send a bank verification letter (开户许可证 or 银行账户证明) on bank letterhead bearing the bank's chop. Legitimate factories produce this in 24–48 hours through their bank. Factories that delay or refuse usually have a reason — most often the bank account is in a related but different entity (sometimes the legal representative's personal account, which is a serious red flag).

Step 2: Understand the Fee Structure

There are three types of fees on every T/T to China. You need to know what each one is and who pays for it.

Outgoing wire fee — paid by sender, charged by your bank. Typical US business bank: $25–50 for an international wire. Chase Business: $40. Wells Fargo Business: $40. Bank of America Business: $45. Your bank may waive this if you maintain a certain account balance.

Intermediary (correspondent) bank fees — deducted from the wire amount in transit. When a US bank sends USD to China, the wire usually passes through one or two correspondent banks (typical USD correspondent banks: JP Morgan Chase, Citibank, HSBC). Each correspondent typically deducts $10–25 from the wire as it passes through. You cannot fully control this. What you can do is choose between three SWIFT charge codes when you set up the wire:

1. OUR — sender pays all fees, including intermediary deductions. Beneficiary receives the full amount. Most expensive option for you. Recommended for first wires to new suppliers.

2. SHA (shared) — sender pays sending-bank fee; beneficiary's account absorbs the intermediary deductions. Cheaper for you, but the supplier may receive less than expected and complain. This is the default at most US banks.

3. BEN — beneficiary pays everything. Almost never used in B2B factory payments.

For first-time wires to a new supplier, choose OUR even if it costs an extra $20–30. It eliminates the "where did $40 go?" conversation when the supplier reports receiving less than the invoice amount.

Incoming wire fee — paid by recipient, charged by Chinese bank. Bank of China and the other major banks typically charge the supplier RMB 0–50 (USD 0–7) on USD inbound wires. Some accounts have it waived. This rarely matters to the buyer.

Bottom-line per-wire cost in 2026: USD 35–75 all-in for a typical wire from a US business account to a Chinese factory's BOC USD account, choosing OUR.

Step 3: Run a Small Test Wire First

For any new supplier, before sending a five- or six-figure deposit, send a USD 100–500 test wire with the same beneficiary details you plan to use for the full payment. Two reasons:

1. Confirms the routing works. SWIFT errors (wrong BIC, address line too long, account number off by a digit) are caught at $100, not at $30,000.

2. Confirms the supplier controls the account. Supplier confirms receipt (preferably by video or phone, not email — the email channel may be compromised). The amount they confirm receiving should match the amount you sent minus any expected intermediary deductions.

The test wire costs you about $40–60 in extra fees. On any significant order, that is the cheapest insurance you can buy.

Step 4: Set Up the Full Wire — Field by Field

Most US business banking interfaces have a wire setup form with these fields. Fill them in exactly as below.

Critical: The Beneficiary Name and Beneficiary Address must match the business license. If your bank's interface limits the address field to 35 characters and the registered address is 50 characters, abbreviate consistently and let the bank know — don't let the system silently truncate.

Step 5: Confirm Receipt and Get the MT103

After the wire is sent:

1. Within 1–3 business days, the supplier should confirm receipt. They will know the exact USD amount that landed in their account. If they report a different amount than expected, the difference is usually intermediary deductions on a SHA wire.

2. Request the MT103 confirmation from your bank. This is the SWIFT message that proves the wire was sent and provides a universal trace ID. Save it to your records — every dispute, claim, or insurance case starts with the MT103.

3. Match the receipt confirmation to the PO or contract. If the wire was for the deposit on PO-2026-0517, the supplier's confirmation should reference that PO. Don't accept "we got the money" — get a written acknowledgment of which order the deposit applies to.

Expert Tip: For ongoing supplier relationships, build a wire log with date, amount, charge code, MT103 reference, recipient confirmation, PO number, and a column for any anomalies. After about ten wires, patterns emerge: this supplier consistently confirms within 24 hours, that supplier always takes 5 days, this branch deducts an extra fee even on OUR wires. The log makes you faster and more accurate over time, and creates the paper trail you need if anything goes wrong.

The Wire Fraud Pattern to Watch For

The most common payment fraud in China sourcing isn't a fake supplier — it's a real supplier whose email gets compromised. The attacker reads weeks of email, learns the deal pattern, and then sends a "we've changed banks, please use the new account" message just before the deposit is due. The new account is the attacker's, in a different city. The supplier doesn't know anything went wrong until the buyer asks where the deposit is, days later.

Three controls prevent this:

1. Verify any change to banking details by phone to a previously known person at the supplier, ideally on a number you already have on file (not a number from the email asking for the change).

2. Require chop'd letterhead confirmation of any banking change — supplier sends a PDF on factory letterhead with the company chop showing the new bank.

3. Verify the new account is at the same bank as the previous account, or has a documented business reason for the change. A supplier in Shenzhen suddenly switching to a bank in Hebei is suspicious.

This is a contract clause we covered in our OEM template (Clause 6) — but it only works if the buyer's payment process actually follows it.

Frequently Asked Questions

How long does a T/T wire from the US to China actually take?

Same-day to 3 business days for most US-to-China USD wires. The SWIFT message itself is near-instantaneous; the delay is intermediary processing and the receiving bank's posting cycle. Wires sent before US-bank cutoff (typically 4 PM ET) usually reach the supplier within one Chinese business day. Friday afternoon US wires often don't post in China until Monday or Tuesday.

What's the difference between OUR, SHA, and BEN charge codes?

OUR: sender pays everything; supplier receives full amount. SHA: sender pays sending bank, beneficiary absorbs intermediary deductions. BEN: beneficiary pays everything. For B2B factory payments, OUR is recommended for first wires to new suppliers (no surprises on the supplier end), and SHA is fine for routine wires once the relationship is established and small intermediary deductions are expected.

Why does my supplier say they received less than I sent?

Almost always intermediary correspondent bank fees on a SHA-coded wire. Each correspondent typically deducts $10–25 in transit. To prevent this, use OUR charge code, which has the sending bank cover the intermediary fees. Cost to you: typically $20–30 extra per wire. Saves the conversation entirely.

Can I send RMB directly instead of USD?

Most US business bank accounts can wire CNH (offshore RMB) but not CNY (onshore mainland RMB). The supplier's USD account is the standard receiving rail; if the supplier prefers to receive RMB, fintech rails like WorldFirst (which has SAFE-approved CNH local payment to China) or PingPong are usually better than trying to wire RMB through SWIFT. For first-time relationships, USD is simpler.

What's an MT103 and why do I need it?

MT103 is the SWIFT message format for a customer credit transfer — essentially the proof-of-wire document. Every SWIFT wire generates one. Your bank can produce it on request, sometimes for a small fee. It's the universal document for tracing where a wire went, requesting recall if needed, or supporting an insurance claim. Save the MT103 for every wire.

Can the wire be reversed if I send to the wrong account?

Reversal is possible but not guaranteed, and time matters. Within 1–2 business days of sending, your bank can request a recall through SWIFT — success rate is moderate if the funds haven't been spent. After 5–7 business days, recovery becomes much harder and usually requires legal action in the recipient country. The faster you spot the error, the better.

What if my bank charges a higher wire fee than the $25–50 range?

Some smaller US banks and credit unions charge $50–80 per international wire. If you're sending more than 4–6 wires per year, opening a business account at a bank with cheaper international wire pricing (or moving to a fintech rail for routine payments) usually saves more than the account-opening hassle.