In the international trade market, large - amount fund transfers are usually carried out through telegraphic transfer because bank telegraphic transfer services are quite fast, almost all processed on the same day, and the remittance funds are not occupied during the mailing process, which is quite convenient. However, compared with other types of remittances, bank telegraphic transfer has relatively high fees.

The telegraphic transfer process is also relatively simple. First, the payer fills out the remittance application form and submits the payment. After receiving the money order, the remitting bank notifies the receiving bank by telegram or telex. The receiving bank sends a telegram notice to the payee, and then the payee goes to the bank to cash the money.FX Settlement AgencyAfter completion, the receiving bank will send a debit note to the remitting bank, and the remitting bank will notify the payer of the successful payment. Then the entire transfer is completed.

Typically, when the remitting bank sends a notification to the receiving bank, the payers remittance application includes the remittance amount and currency, the payees name, address or account number, the payers name and address, remarks, the method of position allocation, the remitting banks name or SWIFT address, etc. Of course, to ensure security, both parties usually use an agreed-upon test key. It can be said that this practice of setting up secret codes further enhances the security of wire transfers. Naturally, if the payer finds any discrepancy in the code, they will directly contact the receiving bank until the code is corrected.

At present, Telegraphic Transfer (T/T) is mainly divided into: 100% TT in advance, 100% TT after receipt, TT deposit + balance payment at sightL/Cetc.

100% TT in advance: This means that 100% of the money is paid for production upon receipt of payment. It should be noted that this money is paid for the production of goods, not for the delivery of goods, which means that the money is paid before the start of production. However, this poses too much risk to the importer. For this reason, this payment method is now rare and is usually only used for sample orders and small orders.

100% TT after receipt: This is payment upon receipt of goods, which is risky for exporters. Most exporters are reluctant to use this payment method unless they are regular customers.

TT deposit + balance L/C: This method is currently quite popular. Usually, it is 30% TT and 70% balance L/C. Of course, according to the specific situation of each transaction, the amount can be negotiated between the buyer and the seller.

Overall, although telegraphic transfer (T/T) is a commercial credit, it is generally very safe barring individual cases. Both buyers and sellers can use their funds more effectively. The disadvantage is that the telegraph fees and handling fees are high and must be borne by the remitter.