Wireless power transfer (WPT) system with quadrature double channels (QDC) features a controllable magnetic field distribution, enabling a distribution of strong coupling regions according to the locations of the receiver coils, and thereby supporting wide-range power delivery for electrical devices. Circulating currents are induced by the aligned, cross, and same-side mutual inductances within the QDC coupling structure. The resonance state and transmission efficiency in quadrature double channels-Wireless power transfer (QDC-WPT) system are deteriorated by the circulating currents, unbalancing the power between the two transmission channels. This article formulates the QDC-WPT model and analyzes the component and formation mechanisms of circulating current under two excitations. The reactive and active components of the circulating currents are clarified. Expressions for the power transmission component and six sets of circulating current are derived. Accordingly, a configuration method for resonant circuits is proposed to compensate for the reactive current. The distribution characteristics of active circulating currents with respect to the relative positions are analyzed, revealing three mechanisms by which the circulating currents act upon the power transfer component: dominant, superimposed, and cancelled out. Then, the zero-power point under the circulating currents for the single energy channel is derived, with the power balance constraint condition for the dual energy channel. The QDC-WPT system operating in power transfer mode, critical mode, and power feedback mode, are determined, respectively. Finally, a 1 kW system model and a prototype are established. Simulation and experiment results validate the proposed circulating current mechanism, compensation method and system performance analysis.