What does settling an invoice in CNY mean?
It means the supplier's Chinese bank account is credited in Chinese yuan, in the exact amount on their invoice. You fund the payment in your own currency or from a card; the conversion happens before the payout, so the supplier receives the figure they asked for.
Why does it take about ten minutes rather than days?
Because it is a domestic payout inside China rather than an international wire. A SWIFT transfer hops through correspondent banks, each with its own cut-off times and fees. A CNY settlement converts once and then makes a local transfer, which clears on local rails.
What can delay or reject a CNY payment?
Almost always the beneficiary name. Chinese banks match the account name strictly, and a trading name from the invoice will not match the registered account name. Confirm the exact account name with the supplier before you send.
- Beneficiary name does not match the registered account name — the dominant cause
- Account number mistyped, or a branch given that does not hold the account
- The account is dormant or newly opened and still restricted
- A payment reference the supplier needs for reconciliation was left blank
When should I pay in USD instead of CNY?
When the supplier invoices in dollars and holds a USD account — commonly larger trading companies and export-focused factories. Paying CNY against a USD invoice leaves the supplier to convert, and the shortfall becomes an argument about who absorbs it.
The rule is simple: pay in the currency the invoice is denominated in. Anything else moves the FX risk onto whoever did not choose it.
What record do I keep?
A transfer record with the amount, the beneficiary, the reference and a timestamp, plus the supplier's own acknowledgement. Keep both. The transfer record proves you paid; the acknowledgement proves they associated your payment with your order.