PAYMENT RISK · October 5, 2026
Chinese Supplier Requests Payment to a Third Party: Verification Steps
When a supplier asks you to pay another entity, verify both the instruction and the proposed recipient before authorizing the transfer. A plausible explanation or matching invoice amount does not establish that the recipient is authorized to collect the supplier's money.
Map the parties before checking the bank details
Record the contracting supplier, invoice issuer, proposed beneficiary and any claimed agent or group-company relationship. Obtain the legal names and supporting explanation for why payment should go to a different party. Distinguish a company-name translation issue from a genuinely different entity.
Ask for written authorization identifying the order, amount, currency, recipient and intended treatment of the payment against the supplier balance. Whether the arrangement satisfies contractual or regulatory requirements needs appropriate review; a letter alone is not proof of authenticity.
Verify through an established contact channel
The FBI recommends independently verifying payment requests and changes to account or payment procedures, using contact details you obtain independently rather than those supplied in a suspicious message. Apply that control to a third-party collection request even when the email conversation looks familiar.
Contact the supplier through previously verified details and confirm the instruction with an authorized person. Record who was contacted, when and what was confirmed. Do not let an urgent shipment deadline substitute for this check.
Example: a trading company asks for payment to an agent
Illustrative example: Supplier A issued a US$8,000 invoice, but a new email asks for payment to Company B, described as its collection agent. Keep the invoice open while you independently confirm A's instruction, B's identity and the documented relationship. Ask how A will acknowledge the payment and reduce the order balance.
A bank account name that matches Company B only helps identify the proposed beneficiary; it does not prove A authorized B. If the evidence conflicts, escalate through your payment-approval process before proceeding. This example is not a recommendation to approve the arrangement.
Create a clear approval and reconciliation record
Keep the verified instruction, supporting documents, review decision and payment reference together. Require the normal separation between checking recipient details and authorizing payment. After a transfer, obtain the supplier's acknowledgment against the relevant invoice and reconcile the remaining balance.
If funds may have been diverted, contact your bank promptly through a trusted channel and follow its incident process. Do not send another payment merely because a recipient claims the first one failed. Verification reduces uncertainty but cannot guarantee legitimacy or recovery.