Mr. Divya Aggarwal
Senior Copy Editor
Money Management Consultants Ltd
New Delhi, India
No of Topics Posted : 113
Reply/Comments : 18
TOPIC : Telegraphic Transfer (T/T)
Prepayment or advance payment is a method of payment used in international or domestic transactions where the buyer pays the seller in advance before receiving goods or services. It is a very high-risk method for the importer and with almost no risk for the exporter. Usually an importer can pay the exporter by cash, T/T, Western Union or Money Gram or other payments that is agreed by both parties.
However, T/T is the most common payment method that requires the use of cable or telegraph to remit funds. No hard money transfer is involved in T/T. The order to pay is wired to an institutionsâ€™ cashier to make payment to a company or individual. Although telegraph is less in use these days, T/T is regarded as the most convenient means of completing a transaction.