Validate the supplier’s legal business information before sending any deposit.
Match payment terms to the order stage, such as sample, deposit, inspection, and balance.
Confirm beneficiary name and bank details using the supplier’s official company records.
Keep all payment approvals tied to written quotations, purchase orders, and inspection results.
Escalate to stronger controls for higher-value orders, including trade assurance or documentary methods when appropriate.
The supplier asks for payment to a personal account or a mismatched company name.
Urgent pressure to pay before the quotation, sample, or company identity is clear.
Last-minute changes to beneficiary bank details without formal explanation.
Frequently Asked Questions
Is a 30/70 payment split common?
Yes, many suppliers request a deposit before production and the balance before shipment. The exact split depends on trust, product type, and order value.
How do I reduce payment fraud risk?
Verify company identity, confirm bank details independently, keep documents aligned, and avoid sending funds to accounts that do not match the contracting supplier.