The difference between TT Payment and L/C Payment
TT payment is Telegraphic transfer or telex transfer, often abbreviated to TT, is a historic term used to refer to one of the form of exchange of money which happens in some of the countries for ex (uk). A transfer charge is often charged by the sending bank and in some cases by the receiving bank.
L/C payment is Letter of Credit that is a letter that banks will provide to seller side of a transaction to verify that the buyer is able to pay that amount of money , in case if the buyer don’t pay the seller the bank has to pay the seller
The L/C payment procedure is usually as follows:
a. You (the importer) applies to open the L/C to us (the seller) through a bank who can open the L/C in your country.
b. The opening bank will inform The Bank of China that the L/C has been opened.
c. The Bank of China will inform us that the L/C has been established.
d. We’ll check all the terms and conditions listed in the L/C. If all terms and conditions are acceptable, we’ll arrange the shipment within the time specified in the L/C.
e. After the goods are loaded onto the ship without any damage, the captain will issue the clean bill of lading to us.
f. We will submit the clean bill of lading and other relevant documents to The Bank of China to gather the payment. Only with clean bill of lading can you claim the ownership of the goods.
g. The Bank of China will send the clean bill of lading and relevant documents to your bank (the opening bank).
h. The opening bank will inform you that all documents are received.
i. You will go to the bank to make the payment to get the clean bill of lading and relevan documents.
j. With all of these documents, you can clear the import Customs and pick up the goods after the goods arrive on the destination sea port.
L/C is used for the larger quantity order shipped by sea.
TT Payment is Telegraphic Transfer that is also called wire /swift transfer which is cheap and fastest legal way of remitting money over seas through any bank with forex facility by the way you have to be careful before you buy any such things from companies before you should know them well
TT payment in advance is usually used when the sample and small quantity shipments are transported by air. The reason why is that the documents like air waybill, commercial invoice and packing list will be sent to you along with the shipment by the same plane. As soon as the shipment arrives, you can clear the customs and pick up the goods with the documents. As it’s acknowledged, T/T payment in advance presents risk to the importer if the supplier is not an honest one.
Important NOTE: RUIJIE Steel recommends customers to use Secure Payment order via alibaba platform to make a deal, and we are good member of Alibaba company. You can see this article: pay using bank transfer (T/T payment) for Secure Payment order.