You have approved the sample and agreed the unit price on your golf bag or duffel order, and now the supplier’s salesperson asks the question every import deal turns on: “How will you pay?” That is not a formality — the payment method you choose decides who carries the risk that the other side delivers or pays, how much of your cash sits at risk before goods sail, and how much friction your first and every later order carries. This guide compares the four methods you will actually be offered by a Chinese bag exporter — Telegraphic Transfer (TT), Letter of Credit (LC), Documents against Payment (D/P) and Documents against Acceptance (D/A) — in plain terms, with the deposit ratios, credit terms, and document-release mechanics that matter when you buy custom bags from a Quanzhou manufacturer.
Quick Answer / TL;DR
TT with a deposit is the B2B default for bag imports from China: typically 30% deposit to lock the order and start production, 70% balance against a copy of the bill of lading (telex-release, or “release by telex”) before the vessel sails. That balance structure is called “30/70 against BL copy”. LC is the safest for large or first-deal orders but costs more in banking charges and delays your funds; D/P releases documents against payment; D/A is a credit extension you should almost never accept against a new supplier. For a buyer of OEM/ODM bags, a clean pre-agreed “TT split” with a trustworthy exporter gives the best balance of cost, speed and protection — with an LC as the fallback for a big first order.
Why Payment Terms Matter More Than the Price
Unit price gets the attention, but payment terms quietly set your real risk exposure. With a TT 30/70 deal on a USD 30,000 order, roughly USD 9,000 is out of your account before a single carton is packed — and if the supplier disappears, that deposit may be gone. With an LC, your bank holds the honor to pay only against documents that prove shipment, which protects your USD 30,000 but ties it up in banking fees and inspection windows. Understanding exactly where your money is at each stage is the difference between a smooth repeat program and a one-time financial loss.
Every method below is a documented practice governed by international rules. Letters of credit are governed by the ICC Uniform Customs and Practice for Documentary Credits (UCP 600), and documentary collection (D/P and D/A) by the ICC Uniform Rules for Collections (URC 522) — these are the frameworks a bank applies the moment a piece of paper is challenged, so knowing them is not academic.
The Four Payment Methods at a Glance
Here is the one-sentence version of each method, from the bag buyer’s point of view:
- TT (Telegraphic Transfer) — you send funds directly, usually in two tranches: a deposit up front and the balance against a document (typically the BL copy). Fast, cheapest in banking fees, and the most common for B2B bag imports.
- LC (Letter of Credit) — a bank undertakes to pay against documents that match the credit’s terms. Highest form of payment security for the seller, and the party-protection feature buyers lean on for big or new-supplier deals.
- D/P (Documents against Payment) — the buyer’s bank releases the shipping documents (including the B/L) only when you pay the draft at sight. A middle-ground method.
- D/A (Documents against Acceptance) — you accept the draft (promising to pay later) and receive the documents before paying; payment falls due at a future date. This is effectively credit extended to you.
Payment method comparison table
| Factor | TT (Telegraphic Transfer) | LC (Letter of Credit) | D/P (against payment) | D/A (against acceptance) |
|---|---|---|---|---|
| What it is | Direct wire in tranches | Bank pays against documents | Docs released on your payment | Docs released on your acceptance |
| Typical deposit (bag trade) | 30% (30/70 is the norm) | Often 0–10% in practice | Often 0–30% | Usually 0% |
| Balance timing | Against BL copy before sailing | Against full document set | At sight of documents | At a future maturity date |
| Risk to buyer | Medium (deposit at risk) | Low (bank-gated) | Medium | Low–medium |
| Risk to seller | Low–medium | Low (most secure for them) | Medium | High (they ship first) |
| Banking cost | Lowest (a few wire fees) | Highest (opening, advising, discrepancy fees) | Moderate | Moderate |
| Speed | Fastest — funds in days | Slowest — document and bank cycles | Medium | Medium |
| Best for | Repeat orders with a trusted supplier | Large first orders / new supplier | Trust-building middle step | Almost never for new bag suppliers |
| Governing rules | SWIFT wire standards | ICC UCP 600 | ICC URC 522 | ICC URC 522 |
TT (Telegraphic Transfer): The B2B Default for Bags
TT is how most bag imports from China are actually paid. It is a direct bank-to-bank transfer; in a China-export context the term almost always means a two-tranche structure rather than a single full payment. The universal formula in the bag trade is 30/70 against BL copy: 30% deposit confirms intent, reserves raw materials and line time; 70% balance is paid when the buyer receives a copy of the bill of lading — the carrier’s receipt that proves the goods are on board.
The “telex release” mechanism you need to understand
The phrase “telex release” (or “express release”, “release by telex”, “telex B/L release”) means the carrier releases the cargo at destination without the buyer presenting the original paper B/L. In practice, for a 30/70 TT deal the exporter sends you a scanned copy of the non-negotiable / telex-released B/L, you release the 70% balance, and the carrier hands over the container at destination against the telex instruction. The rule to negotiate: the balance is due against the BL copy, before the goods sail — not after arrival. That keeps the seller honest (they cannot show you a shipped B/L copy unless they actually shipped) while releasing your funds in time for the vessel to move.
Good practice: spell out in your purchase order: “Payment: 30% deposit with PO confirmation; 70% balance against telex-released B/L copy before sailing, within 3 banking days.” A written trigger beats a spoken agreement every time.
What the 30% deposit actually buys you
- Line-time / material reservation — your order gets scheduled, fabric and hardware are ordered to your spec.
- Buyer commitment signal — the deposit aligns incentives before work begins.
- A cancellation buffer for the factory — if you cancel after cutting, someone is compensated for already-consuming labor.
Some suppliers offer other TT splits — 40/60, 30/40/30 (deposit, against production progress, against B/L copy), or “100% TT with payment terms”. A common seller-offered variant is “70/30”: 70% deposit. Politely push back: a 30% deposit is the sector norm for OEM/ODM bag programs, and paying more than that against an untested factory ties up far too much working capital at risk (see our guide on OEM/ODM order structure).
LC (Letter of Credit): The Safety Net for Big or First Orders
An LC is a written undertaking by the buyer’s bank (the issuing bank) to pay the exporter (the beneficiary) a set amount against presentation of a compliant set of documents, within a fixed time. It is governed by ICC UCP 600. For a bag importer, the LC’s value is that payment happens on documents, not on trust: the exporter only gets paid when they present, say, a clean B/L, commercial invoice, packing list and certificate of origin that match the credit’s terms exactly.
What an LC costs and where it bites
- Bank charges — opening commission, advising/negotiation fees at the exporter’s bank, and often amendment and discrepancy fees. For a small bag order these can eat a meaningful share of margin.
- Time — LC issuance, document presentation and checking add days to every cycle.
- Discrepancy risk — if the documents differ from the credit in any detail, the exporter faces a discrepancy; the buyer’s bank may refuse payment, triggering corrections and warnings.
Watch-out: an LC protects you on documents , not on quality . It proves shipment happened under the terms; it does not inspect the stitching. Pair an LC with a pre-shipment inspection (see the factory-audit and QC path in our OEM/ODM overview ) rather than treating it as a quality guarantee.
When to pay the LC premium
Choose an LC when: your order is large enough that the banking cost is trivial relative to value; it is a first deal with a new supplier and neither side has history; or a buyer’s country banking rules or letter-of-credit requirements push you that way (common in some Middle East, African and South Asian markets). For a repeat US or EU bag buyer on a standard 30/70 TT, an LC is usually over-engineering — the fees and document friction outweigh the added safety.
D/P and D/A (Documentary Collection): The Middle Paths
Both methods run through the ICC URC 522 framework and route documents via banks without the full LC undertaking.
D/P (Documents against Payment)
Your bank releases the shipping documents — crucially the bill of lading, which is the document of title — only when you pay the draft at sight. The exporter ships, presents documents to their bank, which forwards to your bank; you pay, your bank releases the docs, and only with the docs can you take delivery. D/P is often offered as a trust-building step toward future TT terms; it gives the seller reasonable assurance you will pay before control passes to you.
D/A (Documents against Acceptance)
Here you accept (sign) a time draft promising to pay at a future date (e.g., 30, 60 or 90 days) and take the documents — and therefore the goods — immediately. This is effectively supplier-financed credit to you. It is attractive on paper but the risk sits entirely with the exporter, so it is rarely offered to new buyers and, when it is, the price likely already bakes in that financing cost.
Our honest counsel for bag buyers: D/A against a supplier you have not long-traded with is a trap. If you really want credit terms, negotiate them inside a TT or D/P structure with a supplier you trust, rather than accepting a time draft from an unfamiliar factory.
Credit Terms (账期): when can you pay late?
“Credit terms” / open account / deferred payment means you receive the goods and pay at an agreed later date. For first-time or low-volume bag importers, meaningful credit terms are uncommon — the exporter has no history to price your risk against, and their working capital is tied up in fabric and line time. As your repeat volume grows and your payment record stabilizes (typically after several clean cycles), some suppliers will offer net-30 or net-60 terms or a higher late-payment tranche, effectively a trust credit line. If credit matters to you, the cleanest route is to build it: start with 30/70 TT, pay accurately and on time, and ask to move a portion of the balance to a 30-day term after a track record is proven.
How JUNYUAN Structures Payments for Bag Buyers
QUANZHOU JUNYUAN COMMERCIAL AND TRADING CO., LTD. has been exporting bags since 2014, and our founder’s bag-industry experience dates from 2004. For overseas buyers we run a flexible but transparent payment policy built around what actually protects both sides:
- Standard OEM/ODM bag program: 30% TT deposit, 70% balance against telex-released BL copy before sailing.
- Large or first-time factory-transfer deals: we accept an LC at sight (L/C at sight) to give you bank-gated safety on a higher-value first order.
- Growing buyers: once a repeat relationship and clean payment history are in place, we can discuss moving a tranche to credit terms.
- Trust built on a vetted base: production runs through an affiliated factory — SGS-verified for Alibaba.com in March 2026 at 4,950 sqm, 7 production lines, 149 machines and 137 staff, with a monthly line capacity of 200,000 pieces — plus two branch plants and a vetted network of partner factories. An audited base makes 30/70 TT a reasonable trade for both sides.
Founded in 2014 in Quanzhou, Fujian, Junyuan is led by a founder with bag industry experience dating from 2004. Production runs through an affiliated factory — SGS-verified for Alibaba.com in March 2026 at 4,950 sqm, 7 production lines, 149 machines and 137 staff, with a monthly line capacity of 200,000 pieces — plus two branch plants and a vetted network of partner factories.
How to Choose: a Quick Decision Framework
| Your situation | Recommended method | Why |
|---|---|---|
| Repeat order, trusted supplier, value under ~USD 50k | TT 30/70 vs BL copy | Lowest cost and friction; deposit aligns incentives |
| Large first order / new supplier, value above ~USD 50k+ | LC at sight | Bank-gated payment on documents protects a big exposure |
| Building trust with a mid-value supplier | D/P | Docs only released on payment — a fair middle step |
| You require supplier-funded financing | Negotiated credit terms (after history) | Earn credit, don’t accept a time draft from an unknown |
Currency note: for most bag trades quotes are in USD. Bank charges and FX rates differ by corridor — confirm your forwarder or bank cost estimate and include it in landed cost (our quote-request flow includes freight guidance).
FAQ
Q: What does “30/70 against BL copy” mean for a bag order?
You pay 30% deposit to start production, and the remaining 70% when the supplier sends you a copy of the bill of lading proving shipment (telex-release) — typically before the vessel sails. It balances the seller’s material commitment against your cash risk.
Q: Is TT safe when buying bags from China?
Yes, when structured as a split TT (usually 30% deposit + 70% against BL copy) and with a verifiable supplier. The deposit is your main exposure, so diligence matters — check third-party verification (such as the SGS audit behind Junyuan’s affiliated factory) and keep deposits in line with sector norms.
Q: What is the difference between LC and TT?
TT is a direct wire, cheapest and fastest, used in split deposits. LC is a bank undertaking to pay against documents, governed by ICC UCP 600 — safer for large/new deals but higher in banking fees and slower. For most repeat bag orders TT is better value; for big first orders an LC is worth the premium.
Q: What does a telex release of the bill of lading mean?
It is an instruction to the carrier to release cargo at destination without the original paper B/L. In a 30/70 TT deal you pay the balance against a scanned copy of the telex-released B/L before sailing, and the container is released to you on arrival.
Q: What are D/P and D/A?
Both are documentary collections under ICC URC 522. D/P releases documents only on payment at sight; D/A releases documents when you accept a time draft (paying later) — effectively credit. D/A against a new supplier is high-risk and we advise against it.
Q: Can I get credit terms (net-30/60) from a Chinese bag factory?
Rarely on a first order, because the exporter has no payment history to price your risk. As a repeat buyer with a clean record you can negotiate moving a tranche to deferred terms. We discuss this for established Junyuan clients.
Q: Why is 30% the standard deposit for bags?
It covers the supplier’s upfront material purchase and line reservation while keeping most of your capital out of risk until shipment is proven. Much higher deposits (e.g. 70%) against an unvetted factory are a red flag worth negotiating down.
Q: Do you accept LC for bag orders?
Yes. Through our export entity, QUANZHOU JUNYUAN COMMERCIAL AND TRADING CO., LTD. (Customs code 35059619KU), we accept 30/70 TT and L/C at sight, and will recommend the structure that fits your order size and relationship stage.
Next Step: Lock the Payment Structure Before You Place the Order
The smartest time to settle payment terms is in the same conversation as the price — not after the PO is issued. Tell us your order value, whether it is your first deal with us, and your bank’s comfort with LC, and we’ll map the payment structure that protects you without overpaying in banking friction.
Start with a Transparent Quote
Send your bag design, quantity and target market to start the conversation. We’ll return production timing, freight guidance and a clear recommended payment structure.
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