What is a T/T payment to an overseas supplier?
Updated: 2026-10-16
Short answer
T/T stands for telegraphic transfer, a term commonly used in international trade for a bank-to-bank wire transfer. The buyer instructs its bank to send funds to the supplier's nominated account. T/T can be fast and convenient, but the transfer itself does not guarantee that the supplier will ship the goods or that they will meet the contract specifications.
What Does T/T Mean?
T/T means telegraphic transfer. The term is widely used by overseas suppliers to describe an electronic bank transfer from the buyer's account to the seller's account. Instructions may be transmitted through international banking networks such as SWIFT, depending on the banks and countries involved. The exact processing time, fees, and intermediary bank deductions vary by transaction.
Common T/T Payment Terms
Suppliers may request full payment in advance, a deposit followed by payment before shipment, or a deposit with the balance due against agreed shipping documents. For example, a contract might require an initial deposit to start production and the remaining amount after a specified inspection or before dispatch. These percentages and milestones are commercial terms negotiated by the parties, not fixed rules attached to T/T.
Advantages and Risks of T/T
T/T is familiar to many suppliers, relatively straightforward to arrange, and suitable for many routine business payments. However, a bank transfer generally does not condition payment on the shipment or quality of the goods. Payments to an incorrect or fraudulent account can be difficult to recover, and international transfers may be hard to reverse once processed. Buyers should therefore verify the supplier and bank details before sending funds.
How to Make a T/T Payment More Safely
Confirm the full beneficiary name, account number or IBAN, bank name, and required SWIFT/BIC details against independently verified records. If payment instructions change, confirm the change by calling a known contact using a trusted telephone number rather than replying to the email that announced the change. Make sure the contract specifies the amount, currency, payment schedule, goods, and shipment conditions. For a new supplier or a large order, consider staged payments, an LC, or a reputable escrow arrangement instead of an unconditional full advance. See https://www.trade.gov/cash-advance.