TT payment(Telegraphic transfer) is a method of payment known to importers in international trade. Many people think that wire transfer is the safest way of payment, compared with Paypal, western union and so on. But TT payment has its advantages and disadvantages, and there are a few things you need to know to reduce the risk.
Commonly known as the Telegraphic Transfer or Bank Wire Transfer or the Telex Transfer, the TT payment is an electronic means by which money is transferred between two or more banks. It is usually meant for making international payments. However, financial institutions in the United States can facilitate domestic TTs between themselves through the Federal Reserve System. This form of sending money has its own advantages and disadvantages. Let’s take a look at them now.
TT payment: Advantages & Disadvantage
Clearly, understanding the advantages and disadvantages of TT payment, in order to better use this payment method, we will help you list one by one.
The Advantages of TT payment
A. It is accepted almost everywhere around the globe
B. The fees charged for TT payment are fixed. Therefore many individuals and companies can enjoy minimum transfer charges when they send large amounts of money through this method.
C. It is the fastest international bank to the bank transfer method
D. There are lower levels of risk associated with it.
E. Cash can move freely across banks
The Disadvantages of TT payment
A. TT payment is the slowest cash transfer method across boundaries when compared to other methods. It can take more than 5 business days for the money to reach the recipient. This is not the case with other international money transfer methods like PayPal, Payoneer, Western Union, and World Remit.
B. A slight mistake made by the sender can result in very long delays
C. Money cannot be easily accessible in the bank.
D. The method is popular for internet scammers, hackers and other online fraudsters. Many buyers end up being tricked to sending money to wrong destinations.
TT payment: these tips you must to know TO REDUCE RISK.
TT payment, which is made through a bank, are safer than many payment methods, but if you are using this method of payment, there are several points that you must know to reduce risk. Below are some proven ways which can be used to lower risks associated with Telegraphic Transfers.
Pay a partial deposit
When one is buying goods or services from a supplier, it is good for them to negotiate for a partial deposit when payment is carried out through TT payment.
This will reduce cases associated with failure of delivery due to seller’s untrustworthiness, or some problems which can occur in-between these two parties. For instance, one can ask to pay only 20 percent of the total amount quoted up-front and later finish the remaining 80 percent after the delivery has been fulfilled.
Verify details before making a payment
To avoid unnecessary delays associated with mistakes made in filling the recipient details, it is better to first confirm with them before the payment is made.
After filling the required forms, make sure you have entered everything correctly and properly. Also, verify the authenticity of the supplier first before you proceed to make such a payment. You may be cheated by either hackers or scammers.
Withhold funds until all parties are satisfied
This option can be best practiced by freelancing sites and some online departmental stores which provide platforms for both buyers and sellers to meet.
Payment should be made through the site’s platform, and the intended recipient of such funds should only have access to them when the sender has confirmed delivery of the product or service. This guarantees you as the customer that you will not fall for a scammer, who may take your money and go without fulfilling your requests. Alibaba is one of such big online departmental store which is protecting clients through that way.
Through this article, I hope you can better use TT payment, reduce risk of fraud. It is common to see that many foreign customers leave messages on the post bar, and the account number of making the payment to the supplier has been tampered by hackers, and the payment for goods and goods cannot be received. Therefore, when using TT payment, also must be very careful.
If you are still worried, you can find a stable China sourcing agent to cooperate with him and remit the payment to your trusted purchasing agent. They will help you find suppliers and pay for the payment, and you will no longer have to worry about being cheated.
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