T/T (Telegraphic Transfer)
An electronic bank-to-bank wire transfer, the most common way overseas buyers pay suppliers in China for deposits and balances.
TL;DR: T/T is an international wire transfer sent from the buyer’s bank to the seller’s bank. It is the most common payment method in trade with China, often used for a deposit and a balance.
The term dates from the days when banks sent payment instructions by telegraph. Today, transfers are sent electronically, most often through the SWIFT network. You may also see it called a wire transfer or TT payment.
A T/T needs the seller’s full bank details. These usually include the beneficiary name, account number, bank name and address, and the SWIFT or BIC code. The beneficiary name should match the company on your contract and proforma invoice. Payments to a personal account or to a company with a different name are a common warning sign of fraud.
Fees can be charged by the sending bank, the receiving bank and any intermediary bank in between. Agree in advance who pays which fees, so the seller receives the full invoice amount. After you pay, send the seller a copy of the bank payment slip, sometimes called an MT103, so it can trace the funds.
Before the first payment, confirm the bank details by phone or video call with someone you know at the supplier. Be careful with any email asking to change bank details, since email account takeover is a known scam in trade. Compare with L/C, D/P and Deposit and Balance Payment.