Hi VinaTrain, I’m a student at the center in Hanoi branch, I have a job in the international payment lesson, so I missed the class. I have received the study materials to wait for the make-up class but I don’t understand clearly. about the form of payment T/T ( Telegraphic Transfer ) and the form of payment TTR (Telegraphic Transfer Reimbursement). Let me ask what is the difference between these two payment methods, the easiest way to remember so as not to be confused when learning. Thank you very much.
2 How to Barcode the Customs Declaration Through the Supervision Area Without Error What is PO (Purchase Order), Distinguishing PO from Sale Contract Invoice What is, Listing Type of Invoice In Import and Export 10 Criteria Not To Be Corrected In Customs Declarations, Declarations Must Be Canceled <3 helped me somewhat understand the methods of national payment, in the following make-up lessons, the lecturer will analyze more clearly the situations for me, and in this article the center answers my questions as follows:
Basic Difference Between TTR and TT Payments
International payments using TT (Telegraphic Transfer) and TTR (Telegraphic) payment methods Transfer Reimbursement) is in the L/C (Letter Credit) payment method
So the first distinction I can remember is as follows: TT is an international payment method – wire transfer independent and not related to other payment methods.
The TTR payment method is in the L/C payment method.
Watching: What is Ttr
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If the L/C allows TTR, the exporter, when presenting the valid documents to the advising bank, will be paid immediately within 36 hours (ie 3 days) and the documents will be sent later to the exporter. import.
Also you can read more about T/T – Telegraphic Transfer payment method
Nature of T/T (Telematic Transfer) Payment Method < /h2>
TT: (Telegraphic Transfer) belongs to the form of credit payment By Remittance – By transfer. The transaction method is simple and is not recommended for large value transactions, the partner works for the first time.
The buyer will go to the buyer’s bank to make a money transfer to the number supplier account. In fact, there are two main cases of T/T payment: prepaid money transfer and immediate or postpaid money transfer.
*** TT Payment Process – Prepayment
B1: The buyer goes to the buyer’s bank to order a money transfer to pay the exporter.
B2: Buyer’s bank sends a debit note to the buyer.
B3: Buyer’s bank transfers money to seller’s bank.
B4: Seller’s bank sends a credit note to the seller.
B5: The seller delivers the goods and the goods documents to the buyer.
*** TT payment process – Pay later:
B1: The exporter delivers the goods and documents to the importer
B2: The importer orders the buyer’s bank to transfer money to pay.
B3: Buyer’s bank sends a debit note to the importer
B4: The importing bank makes a money transfer to the exporting bank
B5: Seller’s bank sends a credit note to the seller.
This form of money transfer to pay later is rarely applied because the seller always wants to hold the handle unless their partner is a long-time and reputable customer.
Banking operations. need to know and the process of making a money transfer when paying T/T
When making a money transfer payment, the bank will perform the following basic operations:
(1) receive application for money transfer;
(2) Check the remittance records;
(3) Make a wire transfer and
(4) Accounting – Record keeping
For, importer and exporter in the transaction, to make T/T payment need to make the documents according to the following form, each serving bank will have its own document, the first time usually requires full , the next time will be simpler
(1) Foreign trade contracts, many TH need only use PI (Proforma Invoice)
(2) Import and export business license
(3) Foreign currency payment authorization and money transfer fee
The importer performing the transaction needs to make a money transfer application to a reputable commercial bank, licensed for international commercial transactions, The content of the application shows the following information:
(1) Name and address of the beneficiary, account number if requested by the beneficiary
(2) The amount of foreign currency to be transferred needs to be clearly stated in numbers and words, and the type of foreign currency
(3) Reason for remittance
(4) Other requirements
(5) Sign, seal
Advantages and disadvantages of T/T payment method
Among international payment methods, Telegraphic Transfer (T/T) is the payment method. Simplest payment Low cost – the role of the bank in this method is just an intermediary to transfer money from the importer to the exporter Paying T/T, the bank does not need to documentation and no need to present documents at the exporter or importer. The risk of TT payment in advance will be at the importer (sending money but not receiving the goods, or the goods are wrong, of poor quality) , because the importer has held the goods – the documents can be paid or not paid off. in other payment methods such as:
TT – L/C, TT/ DP , TT- D/A.
Thank you Linh for sending your question to the center, I hope this article has helped you answer your questions.