What are the common remittance methods?

Remittance can be divided into three ways according to the way in which the remitting bank sends the instruction of fund transfer to the remitting bank:

1. T/T (T/T for short)

T/T is a remittance method in which a remittance bank sends a charge telegram or telegram to branches or correspondent banks in other countries at the request of the remitter, and remits a certain amount to the payee.

The advantage of telegraphic transfer is that it is fast and the payee can receive the payment quickly. With the development of modern communication technology, direct communication between banks by telex is fast and accurate. Telegraphic transfer is a widely used method at present, but its cost is high.

2. Mail transfer

Mail transfer is a remittance method that the remittance bank instructs the remittance bank of the exporting country to remit a certain amount of money to the payee by air mail at the application of the remitter. The advantage of letter remittance is that the cost is lower, but the payee receives the remittance later.

3. Bank sight draft remittance

Draft remittance refers to the remittance method that the remitting bank opens a sight bank draft on behalf of the remitter at the request of the remitter and pays a certain amount to the payee.

The difference between bill remittance and telegraphic transfer or letter remittance is that the remittance bank of bill remittance does not need to inform the payee to withdraw money, but the payee comes to the door to withdraw money with the ticket. Unless endorsed by the payee, this bill can be transferred to circulation, but the payee of wire transfer or letter transfer cannot transfer the right to receive payment.