Is it ok to send payment straight to sellers account, last time I ordered with this company I sent payment with Escrow, this time they asked me to pay straight to their bank account? Is this a good or bad idea?
I would be very concerned if the account they are asking you to pay to is a private account rather than corporate account. Check out this report on a scam where a 3rd party hacks the factory email and convinces the buyers to pay to a new account: Factory email hacked. 29K USD stolen from buyer. How to avoid it happening to you.
As a rule of thumb,
a) Make sure the name on the contract is the same as bank account.
b) Don’t send large payments to private accounts.
c) Visit the supplier for audits and inspections during your order.
Here are some related blog posts and short videos about sourcing safe from China:
Video 1: Finding Suppliers
Video 2: Evaluating Suppliers
Video 3: Negotiations
Video 4: Project Management and Quality Control
Video 5: Protecting Your Intellectual Property
Video 6: Leveraging Global Sources
Video 7: How to Find and Manage Partners for Logistics
Video 8: Avoiding Scams
Video 9: Returning Defective Products
Video 10: Resolving a Dispute
Let me know how things work out for you. Best wishes on your project.
Question answered by Mike Bellamy, host of “Ask the Experts” at the China Sourcing Information Center.
Mike Bellamy is an Advisory Board Member & Featured Blogger at the not-for-profit China Sourcing Information Center (www.ChinaSourcingInfo.org). He is also the author of, “The Essential Reference Guide to China Sourcing” (chinasourcinginfo.org/book) and founder of PassageMaker Sourcing Solutions (www.PSSchina.com )