Suggestion: Watch the 10 minutes video tutorial before reading this article
Telegraphic Transfer (T/T), which commonly called ‘Wire transfer’ is still the most common payment method, when transferring money internationally.
Yet, making Telegraphic Transfer payments is not without risk. In fact, the risks involved are far bigger than most importers might think.
In this article, we explain why a slight misspelling could result in tens of thousands of dollars being withheld by the receiving bank – and why you should never pay privately held bank accounts.
Keep reading, and learn how you can avoid payment delays, scams, and other Telegraphic Transfer related issues.
1. Get the beneficiary name, address and other account details right
When writing money to your supplier’s bank account, you need to make sure that all beneficiary and bank details are correctly, and fully filled in.
If, for example, the beneficiary name is not correctly typed in, the money will be withheld by the Chinese bank – and finally returned back to you.
This is indeed a good security measure, but this will cost you at least 2 to 3 weeks. In addition, you don’t get the bank transaction charges from neither your bank or the suppliers. But, that quite irrelevant, in comparison to what a month long delay could cost your business.
So, why is this even an issue to begin with? Continue Reading →