How to Pay Vendors in China from Canada

Canadian businesses often need to send money to vendors in China for goods or services. In this guide, we’ll walk through which payment methods work best for CAD to CNY, how to compare fees and exchange rates, tips to ensure a timely delivery and avoid hidden costs, and why Venn is the smart choice for Canada to China payments. By the end, you’ll know how to pay your China supplies quickly and affordably.

Whether you import raw materials, purchase software development services, or source finished goods, paying vendors in China efficiently affects your bottom line. Choosing the right payment method and provider not only saves time and reduces costs but also builds trust with your China suppliers.

Step-by-Step: Paying a Vendor in China

Step 1: Gather vendor banking details

Before initiating any transfer, collect:
• Vendor name and address
• Bank name and branch address
• Local bank identifier
• Account number
• SWIFT/BIC (for traditional wires)
• Vendor email and postal addresses

Step 2: Choose your payment method

When paying vendors in China, Canadian businesses typically choose between:

Bank Wire Transfers

Overview: You initiate a CAD to CNY wire from your bank, which routes through one or more intermediary banks before arriving at your vendor’s account.
Pros: Familiar process; secure and direct.
Cons: High fees (flat wire fee, e.g. $30–50 CAD, plus a 2–3% FX markup over mid-market rate); slower speed (3–5 business days).

Online Payment Platforms (like Venn)

Overview: Digital platforms like Venn let you send CAD to CNY online in minutes.
Pros: Lower FX markup; transparent fees; faster delivery and tracking.
Cons: Requires account setup and verification.

Third-Party Billing

Overview: Specialized services pay vendors locally on your behalf. You submit the invoice and CAD funds; the service provider executes a local payout in CNY.
Pros: Vendor receives funds via their local clearing system.
Cons: Service fee per transaction; no direct control over timing once funds are submitted.

Once you’ve selected the method that matches your priorities, follow the instructions provided by your chosen provider. They will guide you through each required step—entering recipient information, authorizing the transfer, and tracking progress—so you can complete the payment accurately and efficiently.

Step 3: Compare fees and exchange rates

Bank FX markup vs. mid-market rate: Traditional banks often quote a rate that’s 2–3% worse than the interbank mid-market (e.g., if 1 CAD = CNY mid-market, you may get 1 CAD CNY minus markup).
Venn’s transparent fee: Venn charges a flat 0.25–0.45% (depending on your plan) on top of the mid-market rate, with no hidden intermediary fees. You can view exact rates before confirming.
Intermediary bank costs: For bank wires, ask if your bank passes any correspondent-bank fees, which can add $10–30 CAD per intermediary.

Step 4: Initiate and confirm

Before sending, double-check:
• Vendor bank details (account number, local routing code—IFSC, sort code, or BSB—and SWIFT/BIC if required).
• Remittance reference matches your invoice number.
Then submit the payment through your chosen method:

• Bank wire: Approve via two-factor authentication or branch signature and note the SWIFT confirmation/reference number.
• Online platform (Venn): Click “Send Transfer".
• Bill-pay service: Authorize on the provider’s platform and await the dispatch email.

Save whichever confirmation you receive (wire receipt, Venn’s “Payment Sent” notice, or bill-pay confirmation) for your records.

Step 5: Track and follow up

After submitting your payment:
• For a bank wire, use the SWIFT reference number to check status with your bank or the beneficiary’s bank.
• For Venn, log in to view real-time updates.
Once funds should have arrived, ask your supplier to confirm receipt in their CNY account. If there are delays, verify no typos in the bank details, check whether China is observing a banking holiday, and if you used a bill-pay service, confirm the vendor’s local account information was entered correctly.

Tips to Reduce Costs and Speed Up Delivery

• Use mid-market rate providers: Platforms like Venn use real-time mid-market rates with a low, transparent markup (0.25–0.45%) compared to traditional banks’ 2–3% markup.
• Batch multiple payments: Group multiple invoices into one larger transfer to cut down on transaction fees.
• Set alerts for favorable rates: Use a rate watch to notify you when CAD to CNY reaches your ideal rate, then convert when advantageous.

Why Choose Venn for Canada to China Payments

Paying vendors in China from Canada doesn’t have to be complicated or expensive. By choosing an online payments platform like Venn, you get:

• Low and transparent FX rates
• Same-day delivery to 180+ countries in 36 currencies
• Proven by thousands of businesses

Switching to Venn means predictable costs, faster delivery, and fewer headaches, so you can focus on growing your business, not worrying about wire confirmations.

About Venn – Canadian Business Banking Built for Growth

Venn is more than just invoicing. We’re redefining business banking by bringing together multi-currency accounts, global payments, automated accounting, corporate cards, and invoicing—all in one place.

Instead of managing multiple platforms, paying unnecessary fees, and wasting time on manual tasks, you can streamline your entire financial workflow with Venn. Whether you’re a small business owner, startup, or scaling enterprise, Venn is built to help you move money faster and more efficiently.