Payment safety checklist

Last evidence review: October 2, 2026

Short answer

This checklist is not a substitute for legal advice. It is a structured way to confirm you have not skipped a step you cannot undo. If any red-flag item is unchecked, resolve it before paying. The checklist covers four stages: factory verification, payment approval, milestone inspection, and large-order protections.

Work it in orderFactory identity first, contract terms second, milestone triggers third, and large-order protections last. Skipping ahead is how stop conditions get missed.

Checklist progress

0 / 18 checked

Start checking items below.

Checklist A — Factory verification (Before deposit)

Applies to every order.

Supplier legal name verifiedBusiness license matches the PI signatory. Checked via Tianyancha or equivalent.

Bank account name matches supplier nameCriticalThe account you are wiring to is in the supplier's legal name, not a personal account or third party.

Factory address confirmedYou have a verifiable address, not just a trading company office.

Product specification written in PINot referenced to a chat or email. Written in the PI with measurable criteria.

Checklist B — Before you approve payment

Applies to every order.

Payment terms match decision tree recommendationYou have matched your amount, platform, and order type to the correct structure.

Red flags reviewedCriticalYou have checked the red flags for your chosen structure (TA limits / 30/70 risks / agent conflicts).

Stop conditions identifiedYou have written down what would make you walk away before the deposit.

Written change-control clause in PICriticalAny specification change requires written confirmation from both sides.

Checklist C — 30/40/30 milestone inspection

Only for orders using 30/40/30 structure. If you are using Trade Assurance or LC, skip to Checklist D.

30% deposit trigger written“30% released after signed PI + factory verification” is in the contract.

40% tied to PSI passCriticalPre-shipment inspection criteria are written and a third-party inspector is appointed.

PSI criteria are measurableCriticalThe PI defines what “pass” means in numbers, not “good quality.”

30% after arrival buffer defined“30% released 30 days after arrival, contingent on no hidden defects.”

Checklist D — Large order protections (>$20,000)

Only for orders over $20,000.

Payment structure matches risk amountCriticalYou are not using T/T 30/70 for a $50,000 order.

LC or escrow consideredYou have evaluated LC vs escrow and chosen based on your bank and supplier.

Independent inspection appointedCriticalA third-party inspection company (not the supplier's friend, not the agent) is engaged.

Dispute resolution clause in contractWritten process for arbitration or jurisdiction if something goes wrong.

Currency risk addressedYou know whether you are paying in USD, RMB, or the supplier's preference, and what that means for your cost.

Insurance consideredCargo insurance and/or product liability insurance is in place or explicitly declined with reason.

Start checking items above

Complete the checklist to see your readiness score.

Payment safety checklist

AChecklist A — Factory verification (Before deposit)

BChecklist B — Before you approve payment

CChecklist C — 30/40/30 milestone inspection

DChecklist D — Large order protections (>$20,000)

Checklist A — Factory verification (Before deposit)

Checklist B — Before you approve payment

Checklist C — 30/40/30 milestone inspection

Checklist D — Large order protections (>$20,000)