Wire Transfer (T/T) is one of the most commonly used international settlement methods in foreign trade. It refers to the buyer remitting funds electronically to the seller's designated account through a bank. Its core features are speed and direct arrival, but it is a commercial credit method that relies on mutual trust between buyer and seller. Use cases include: advance payment, balance payment, sample fees, commissions, etc. Precautions: accurate payee name, account number, SWIFT code, bank address, etc. must be provided, otherwise return fees may be incurred; bank charges are usually borne by the payer, but can also be shared by agreement; once a wire transfer is sent, the bank is not responsible for recovery, so fraud must be guarded against. Compared with Letter of Credit (L/C), wire transfer is simpler and cheaper, but the seller bears greater risk; compared with documentary collection (D/P, D/A), wire transfer does not rely on document flow and funds arrive faster. In practice, a combination of '30% T/T advance payment + 70% payment against copy of B/L' is often used to balance risk.
📝 Examples
1. Please pay the contract balance by wire transfer to our Bank of China account, account number 123456789, SWIFT code BKCHCNBJ. (Note: The seller urges payment of the balance and specifies wire transfer details.)
2. The buyer agrees to arrange a wire transfer of 30% deposit within 3 working days after receiving the proforma invoice, and the remaining 70% by wire transfer against copy of B/L. (Note: A common foreign trade payment term that balances risk for both parties.)
💡 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