TT Payment
Category: Payments
Definition (plain English)
A telegraphic transfer or bank wire used to pay a trade counterparty directly, often split into deposit and balance milestones tied to production, inspection, shipment, or documents.
Why it matters commercially
TT is fast and common, but it concentrates fraud, supplier-performance, milestone, FX, bank-detail-change, and recovery risk when release controls are weak.
Example
A buyer used 20/80 TT terms, releasing the balance only after inspection passed, loading photos matched the PO, and finance verified the beneficiary account by callback.
Common mistake
Sending deposit or balance money from emailed bank details before confirming legal entity, beneficiary name, bank country, SWIFT/BIC or IBAN, release evidence, and sanctions screening.
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