T/T (Telegraphic Transfer)

Telegraphic Transfer (T/T) is one of the most commonly used remittance methods in international trade, referring to the buyer remitting funds to the seller through a bank via electronic means such as telegraph, telex, or SWIFT. The process typically involves: the buyer applies for remittance, the remitting bank sends payment instructions through the SWIFT system, and the receiving bank pays the seller. It is widely used, especially for small transactions, advance payments, balance payments, or between buyers and sellers with high trust in long-term cooperation. Precautions: 1) T/T is based on commercial credit; the seller bears the risk of buyer non-payment, and the buyer bears the risk of seller non-delivery; 2) Bank charges are relatively high, and intermediary bank deductions may result in insufficient received amounts; 3) Remittance route, currency, and charge bearer (e.g., OUR/SHA/BEN) must be clearly specified. Compared with Letters of Credit (L/C), T/T is simpler, cheaper, and faster but lacks bank credit guarantee; compared with D/P and D/A, T/T does not rely on document flow, and funds arrive more directly. In practice, combinations such as '30% advance payment + 70% paid before shipment' are often used to reduce risks.