x Want to know what the advantages of TTR payments are? What are the disadvantages?
x Individuals and importing businesses that have, are and will have to make money transfer orders need to learn about TTR international payments? x Individuals exporting goods eligible for refund or banks representing importers paying TTR need to find out what the payment process is like?
TTR is one of the popular forms of international payment that anyone involved in the import-export field must know. at Proship.vn , with many years of experience in the field of international transportation, import-export,... will quickly answer what TTR is, and who are the parties involved in TTR? What is the payment process?...so that the parties involved or directly involved can clearly understand and understand the issue.
What is TTR payment, who are the parties involved?
What is TTR?
What is TTR? TTR (Telegraphic Transfer Reimbursement) is a form of international payment through wire transfer with compensation, often applied in payment transactions by L/C.
TTR payment method and TTR payment acceptance in L/C are used when businesses make payments. To implement TTR, businesses must send documents and transaction-related documents to the bank and ensure that they comply with legal regulations.
After the import-export enterprise successfully submits all necessary documents, the bank will issue an official dispatch. Some banks can contact directly to confirm information, then transfer money to the seller within 3 days from the time of confirming the information.
If the L/C does not allow TTR payment, the import-export enterprise will have to wait until it has a complete set of international payment documents and submit it to the bank for approval. After that, the business must wait about 7 more working days to determine whether the payment has been confirmed or not.
Parties participating in TTR payment method
The parties involved in this form of payment are usually:
- Money remitter: These are individuals and importing businesses that carry out money transfer orders;
- Beneficiaries: Individuals who export goods and are eligible for refunds;
- Remittance bank: Is the bank that represents the importer to pay in the form of TTR;
- Correspondent bank: This bank has a close relationship with the remitting bank.
What are the advantages and disadvantages of TTR payment?
What are the advantages and disadvantages of TTR payment? Proship would like to share the following:
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Advantages of TTR payments
- Fast payment:
TTR payment operation is relatively fast, as long as the importer sends a payment order, the money can be transferred within 1 working day.
- Low cost:
Payment by electricity takes place through an electronic payment system, helping to reduce costs compared to traditional methods.
Disadvantages of TTR payments
- Difficult to edit:
Because TTR payments are short-lived, if an error occurs, it can be difficult to correct. This may cause risks and problems related to ensuring the accuracy and security of payment transactions.
>>See more: What is AFR fee?
What is the TTR international payment process like?
The TTR payment process helps ensure efficiency and speed in payments. Below are the detailed steps:
- Step 1: The seller prepares documents related to the goods and transfers them to the buyer.
- Step 2: The buyer receives papers and documents and checks their accuracy and compliance with regulations. If all information is correct, the seller will arrange and ship the goods.
- Step 3: The buyer carries out TTR payment procedures at the bank after receiving the goods in full as planned.
- Step 4: The bank receives a request from the customer and places a money transfer order to a foreign bank to pay the seller.
- Step 5: Foreign bank confirms and pays the seller.
The TTR payment process may also vary depending on prepay or postpay terms. Below is the process for each specific case:
Prepaid TTR payment process
For prepaid TTR payment, the process includes the following steps:
- Step 1: The buyer goes to his bank and places a money transfer order to pay the seller;
- Step 2: The buyer's bank will send a debt notice to the buyer;
- Step 3: The buyer's bank transfers money to the seller's bank;
- Step 4: The seller's bank will send a notification to the seller;
- Step 5: The seller delivers the goods and related documents to the buyer.
Postpaid TTR payment process
For postpaid TTR payment method, the process includes the following steps:
- Step 1: The seller delivers the goods and documents to the buyer;
- Step 2: The buyer issues a money transfer order at the buyer's bank to pay the seller;
- Step 3: The buyer's bank will send a debt notice to the buyer;
- Step 4: The buyer's bank transfers money to the seller's bank;
- Step 5: The seller's bank will send a credit notice to the seller.
Note when using the TTR payment method
What is TTR and the TTR international payment process has been shared by Proship. In addition, when using the TTR (Telegraphic Transfer) payment method, you need to note:
Keep relevant documents
To ensure and have documents for comparison in case of customs inspection, businesses should keep documents related to sales and payments. That includes money transfer orders and wire transfers with the bank's stamp, along with a set of original documents.
Send original documents to the bank
The exporter is responsible for bringing the original set of documents to be copied into another copy and proactively enclosing the money transfer order and sending it back to the bank so that the bank can make payment by bank transfer.
Payment after receiving goods and original documents
When using the postpaid TTR payment method, the importer only pays when the goods have been received, along with the original documents and customs declaration.
Keep the documents
Retain copies of documents related to TTR transactions, including remittance receipts and confirmation information from banks. These documents can be useful to look up and verify the transaction later.
Make sure there is enough money in your account
Importers need to ensure there is enough money in their account to pay according to the commercial invoice.
What is TTR and the steps to complete prepaid and postpaid TTR payments have been fully conveyed to readers. Accordingly, relevant parties can learn and apply Telegraphic Transfer Reimbursement international payment accurately and legally... When in need of advice or contact to use Domestic and International transportation services , contact Proship Logistics immediately at 0909 344 247 .
