How many remittance methods are there? What do they mean by letter transfer, wire transfer and transfer?

T/T is a remittance method in which the remitter pays a fixed amount of domestic currency to a domestic foreign exchange bank in exchange for a fixed amount of foreign exchange, and the name and address of the payee are indicated, and then the undertaking bank (remitting bank) sends a telegram with charges to a branch or correspondent bank (remitting bank) in another country, instructing the remitter to pay the payee.

The plan is as follows:

As shown in the figure, telegraph is a settlement tool, and its transmission direction is the same as that of capital flow, so telegraph is a long-term remittance.

T/T is a kind of remittance method with faster collection and higher cost. The remitter must bear the cost of telegraphy, so T/T is usually used only for remittances with large amount or urgent need. ..

In fact, transfer means that the customer entrusts the money to the bank, and the bank remits the money to the local bank of the payee designated by the customer and transfers it to the payee. This method of remittance is very slow, and now customers demand less.

There is a charge for bank remittance. The unit private remittance fee and postage are different. Remittance: Personal remittance of less than 5,000 yuan is charged at 1%, and 50 yuan is charged uniformly for more than 5,000 yuan; Units that open accounts in banks remit money through their accounts by purchasing remittances, and the charging standard is relatively low.

A cheque is a bill issued by the drawer, and a bank or other financial institution entrusted to handle cheque deposit business unconditionally pays a certain amount to the payee or holder at sight. Checks are divided into cash checks and transfer checks. A check printed with the word "cash" is a cash check and can only be used to withdraw cash. A check printed with the word "transfer" is a transfer check and can only be used for transfer.

A bill of exchange is a bill issued by the drawer, payable by the payer at sight or unconditionally paid to the payee or holder on a specified date. In the concept of the above draft, there are three basic parties: one is the drawer, that is, the person who issues the bill; The second is the payer, that is, the person who accepts the entrustment of the drawer and unconditionally pays the amount of the bill. The payer may be other people, including banks or the drawer; The third is the payee, that is, the person who holds the bill and asks the payer to pay.

Promissory notes are issued by the drawer, who promises to unconditionally pay a certain amount of bills to the payee or the holder when seeing the tickets. The promissory note referred to in the Negotiable Instruments Law refers to a cashier's check. In the above concept of promissory note, there are only two basic parties: the drawer and the payee. The differences between promissory notes and drafts in China are as follows: (1) There are three parties to a draft, but only two parties to a promissory note; (2) The drawer (also the drawee) of the promissory note is limited to the bank; The drawer and drawee of a bill of exchange are not limited to banks. (3) The payment method of promissory notes is limited to free payment, while bills of exchange can be paid regularly.