by Tekle Sebhatu
Question:
I am confused about the method of payment to a company that I am going to do some business with in Korea. I want to know what is meant by prepayment T/T. Would this be Western Union or Money Gram or something like that?
Answer:
Dear Noodles: 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. An importer can pay the exporter using cash, telegraphic transfer (T/T), Western Union or Money Gram or other payments that is agreed by both parties. Telegraphic transfer (T/T) the most common payment method that requires the use of cable or telegraph (less in use these days) to remit funds. Money does not move physically. The order to pay is wired to an institutions’ casher to make payment to a company or individual. The same principle applies with Western Union and Money Gram.
Re: What is Western Union or Money Gram
by rosaxavie on 09 Jul 2008 00:53
Quoting from [shenjin]:
I am a newcomer,I have studied some learning about foreign trade ,but I don't know what Western Union or Money Gram is. Thank you!
I am a newcomer, and i have lots of doubt.
What T/T and T/C (terms of payment ) is ?
Re: Re: What is telegraphic transfer (T/T)?
by Elohim on 28 Nov 2008 00:03
Quoting from [Eddies]:
Money does not move physically. The order to pay is wired to an institutions’ casher to make payment to a company or individual. The same principle applies with Western Union and Money Gram....
This what I read but can you explain or eleborate more detail the process or what is the step to do this as a first learner or user
Re: What is telegraphic transfer (T/T)?
by Elohim on 28 Nov 2008 00:54
Quoting from [Resources]:by Tekle Sebhatu
Question:
I am confused about the method of payment to a company that I am going to do some business with in Korea. I want to know what is meant by prepayment T/T. Would this be Western Union or Money Gram or something like that?
Answer:
Dear Noodles: 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. An importer can pay the exporter using cash, telegraphic transfer (T/T), Western Union or Money Gram or other payments that is agreed by both parties. Telegraphic transfer (T/T) the most common payment method that requires the use of cable or telegraph (less in use these days) to remit funds. Money does not move physically. The order to pay is wired to an institutions’ casher to make payment to a company or individual. The same principle applies with Western Union and Money Gram.
Tt (telegraphic transfer), * bill etc. vs. lc (letter of credit)
Author: Catalyst
Back to back letters of credit
Author: Catalyst
The original LC and the one issued against it are independent. See how it works.
