Order Telegraphic Transfer (T/T) Payment is a common payment method in international trade, where the buyer remits the payment directly to the seller's account via bank wire transfer. It is typically divided into advance T/T (payment before shipment) and deferred T/T (payment after shipment). The former favors the seller, while the latter favors the buyer. Use cases include sample orders, small orders, or transactions with high trust from long-term cooperation. Precautions: clarify the remittance path, the party bearing bank charges, exchange rate risks, and arrival time; for deferred T/T, assess the buyer's credit to avoid losing both goods and payment. Compared with Letter of Credit (L/C), T/T is more flexible with lower fees but lacks bank credit guarantee; compared with documentary collection (D/P, D/A), T/T is direct and quick but relies on commercial credit. In practice, a combination of deposit + balance T/T is often used to balance risks.
📝 Examples
1. This contract adopts Order Telegraphic Transfer (T/T) Payment. The buyer shall pay a 30% deposit within 3 working days after receiving the proforma invoice, and the remaining 70% shall be paid in full before shipment. (Note: Clarifies the installment ratio and timing of T/T payment.)
2. Since your company is an old customer, we agree to accept deferred T/T payment, i.e., full payment by wire transfer within 7 days after sight of the bill of lading copy. (Note: Demonstrates the trust basis and operational conditions for deferred T/T.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner