M/T (Mail Transfer)

Mail Transfer (M/T) is a traditional method of remittance in international trade, where the remitter (usually the importer) entrusts a local bank to send a payment order by mail to the bank at the payee's location, instructing it to pay a certain amount to the payee (usually the exporter). It is commonly used for small transactions, non-urgent payments, or trade settlements with low time sensitivity. Precautions: M/T relies on postal mail, is slow (usually takes days to weeks), and letters may be lost or delayed, causing payment delays; banks do not bear mailing risks, fees are low but security is average. Differences from other terms: Telegraphic Transfer (T/T) uses telex or SWIFT, is fast but expensive, suitable for large or urgent payments; Demand Draft (D/D) involves the remitter purchasing a bank draft and sending it to the payee, who can present it for payment, offering higher flexibility. M/T has gradually been replaced by T/T, but is still used in certain regions or small transactions. Foreign trade practitioners should pay attention to payment terms in contracts, clarifying responsibility and risk allocation when using M/T.