How China Sourcing Payments Are Structured

Start with four money buckets

A sourcing quotation can combine several amounts: the supplier’s goods value, MedinChina’s fee or commission, additional services such as inspections, and third-party costs such as transport, banking or insurance.

Separating these amounts helps you understand who receives the money and which terms apply if a shipment, inspection or supplier claim changes the project.

• Goods value paid to the supplier or manufacturer.
• MedinChina fee or commission for work performed.
• Additional services and independent provider costs.

Know who receives the payment

Depending on the project, the client may pay the supplier directly or authorise MedinChina to coordinate a supplier payment. If MedinChina receives funds for a transaction, the funds are used for the agreed purpose, subject to the fees and costs expressly authorised in the documents.

Before a significant transfer, verify the beneficiary, bank details, order reference, currency and amount. A sudden change in bank details should be checked through a channel you already know.

• Match beneficiary and bank details to the approved documents.
• Confirm whether the payment is goods, service, inspection, transport or another cost.
• Keep the written authorisation and transfer record.

Payment milestones depend on the supplier

A 30% deposit and 70% balance is one possible structure, not a universal MedinChina rule. A supplier may request 50/50, full payment before production, payment before shipment or another negotiated arrangement.

The contract and project pro forma invoice control. Read the production trigger, shipment milestone, inspection condition and any cancellation consequence before authorising payment.

Allow for exchange rates and bank charges

International payments can create intermediary-bank, SWIFT, conversion, platform and exchange-rate costs. The rate available at payment may differ from the rate used in the quotation, so a material adjustment may be needed to execute the transaction.

Transport and other logistics estimates can also change before the booking is confirmed. Treat an estimate as provisional until the relevant provider confirms it.

• Confirm the payment currency and who bears bank charges.
• Ask how exchange-rate adjustments will be communicated.
• Separate a transport estimate from a confirmed booking price.

A goods refund and a service refund are different

When a supplier refund is actually recovered for the client, the recovered amount belonging to the client is returned under the applicable terms, subject to legitimate bank or currency costs. That refund is not MedinChina revenue.

Work already performed by MedinChina—research, negotiation, coordination, visits or inspection follow-up—does not automatically become refundable because a later supplier problem occurs. Third-party refunds depend on the provider’s own policy and costs incurred.

Use a payment checklist before you approve

Before a significant payment, check the product, specifications, quantity, price, supplier, timing, payment terms, pro forma invoice, contract, inspection scope and claim or refund conditions.

If a payment is unusual, comes from a third party or does not match the approved documents, MedinChina may pause processing while additional information is reviewed. Ask for clarification before paying rather than trying to correct the transaction afterward.

• The amount and beneficiary match the approved documents.
• The payment milestone and production trigger are understood.
• Goods, services and third-party costs are separately identified.
• You know what evidence to keep after the transfer.