Trade and customs
TT (telegraphic transfer)
Definition
A direct bank wire transfer, used for advance payment or payment after shipment.
TT simply means paying by international bank transfer, usually through the SWIFT network. Common chemical trade terms are 100 percent advance TT, or a split such as 30 percent advance and 70 percent against a copy of the bill of lading.
TT is cheap and fast but gives the payer little protection. Before the first payment to a new supplier, confirm the bank details by phone using a number from the company's own website, because changed bank details in an email are a common fraud.
Related terms
- Letter of credit (LC)A bank's undertaking to pay the seller when the seller presents documents that comply with the credit's terms.
- DP (documents against payment)A documentary collection where the buyer's bank releases the shipping documents only when the buyer pays.
- DA (documents against acceptance)A documentary collection where documents are released when the buyer accepts a bill of exchange to pay at a later date.
- Proforma invoiceA preliminary invoice that sets out the offer before shipment, used to confirm the order, open an LC or make an advance payment.