The dual-load inductive power transfer (IPT) system with quadrature double channels (QDC) enables wide-range and high degrees of freedom power delivery for electrical devices. The coupling mutual inductance within the QDC-IPT system can induce circulating currents, which interfere with its normal resonant operation state. For the dual-load QDC-IPT system, a system model considering the direct and cross coupling mutual inductances is established. The transmission path of the circulating current generated by the coupling mutual inductance is revealed, and the coupling circulating current between the channels and its formation mechanism are analyzed. The expressions of the power transfer component and the circulating current component are given, and the effect of the reactive component of the circulating current on the system is clarified. The reflected impedance of the circulating current and the receiving coil circuit at the transmitter coil are derived, revealing that the interactive coupling effect between two channels can be characterized as a series branch of resistance and capacitance. The power flow between the two channels, the system transmission power, and the efficiency are analyzed. The power ratio generated by the input voltage component and the circulating current component is derived, clarifying the roles of the reactive and active components of the circulating current component during the system operation. Furthermore a power interaction mechanism is constructed, in which the reactive power of the circulating current compensates for the reactive power caused by the variable inductance under specific conditions. The expressions of the input voltage amplitude for compensating the channel reactive power through the reactive power of the circulating current are derived at three excitation conditions. The switching criterion for the operation mode based on the quality factor is determined. Finally, a 1 kW system model and a prototype are built. Simulation and experimental results validate the correctness of interaction coupling and power interaction mechanism compensation. At quadrature excitation, the compensation of energy channels is achieved. The power factor of the energy transfer channel increased by 0.11, and the system efficiency was improved to 93%.