China sourcing glossary
What Is a T/T Payment (Telegraphic Transfer)? Is It Safe With a Chinese Supplier?
What is a T/T payment?
In a Chinese supplier's quotation, "T/T" means a bank transfer. The name is historical; no telegraph is involved. Payment terms often read "30% T/T in advance, 70% T/T before shipment" or "balance by T/T against copy of B/L". The percentages and triggers set when you pay. T/T only describes how the money moves.
The payment instruction should give the beneficiary's registered name, the account number, the bank and its SWIFT code, and the currency. Check each against the contract before you send anything.
Does paying by T/T protect the buyer?
Not by itself. The bank carries out your instruction and checks neither the goods nor the supplier. There is no card-style chargeback on a completed transfer. A recall request has its own risks, set out in Chinese Supplier Took Full Payment and Didn't Ship.
Protection comes from the contract. Pay against steps you can check, and only into an account you have verified. When the payee is a different company from the seller, read what to do when the payee is not the supplier first.
How do you prove a T/T paid the supplier?
With records that tie the money to the seller and the contract. In a Chinese court, a buyer who says its payment duty has ended must prove the payment (SPC Interpretation on the Civil Procedure Law, art. 91; Civil Code art. 557). Keep:
- The bank's transfer confirmation (often called the SWIFT copy or MT103). A screenshot of your banking app is weaker.
- The payment reference, with the contract, PO or proforma invoice number in it.
- The payment instruction you relied on, with the email or chat it arrived in.
- The supplier's confirmation of receipt, matched to the order.
If the seller agreed that you would pay another company, paying that company is how you perform (Civil Code art. 522 deals with performance to a third party the parties agreed on). You will then need to show that the seller agreed, in a form you checked.
These examples are based on matters I have handled. Names, products, places, dates, amounts and other identifying details have been removed or changed. They show the kind of work involved. They don't promise any result.
Acting for a buyer
Re-checking a related company's account before the T/T went out
In one deal, the account the buyer was asked to pay belonged to a different company from the contracting seller, which said a related company collected payment for it, and the buyer at first thought a stamped letter from the supplier would be enough. I worked out whether this was an authorised third-party collection or an account change nobody had verified, by checking who sent the payment notice, which contacts had been used before and whether the bank details matched. I did not rely on a reply to the email that carried the account; I had the client re-check through the contact channel already confirmed. I also asked the supplier to explain how a payment to the related company would be credited to this contract, and who would handle any refund later. The client paid only once the details had been re-checked.
What should a T/T payment instruction show?
| Item | Check |
|---|---|
| Beneficiary name | The contracting seller's full registered name, or a payee the seller has authorised in writing |
| Account and bank | Account number, bank name and SWIFT code, matching the contract or its payment annex |
| Currency and amount | Same as the contract or proforma invoice |
| Reference | Contract, PO or proforma invoice number |
| Bank charges | Who pays them (see below) |
If the account is new, or held by another company, check five more things before you pay:
- The reason for the change or the third-party payee, in writing.
- A formal notice from the contracting seller, on its own letterhead with its chop. A stamped letter alone is not verification.
- Who authorised it, and whether that person can bind the seller.
- A check through a channel you already use, such as a known phone number or a video call with your usual contact. Don't reply to the message that brought the new details.
- How the payment links to this contract. Written confirmation that paying this account settles your debt under it, and of who refunds you if the order fails.
A third-party payee is not proof of fraud. These checks give you a record that shows, later, that your payment counted.
Questions from overseas buyers
Who pays the bank charges on a T/T?
Whoever the contract says. When you send a SWIFT transfer, you can choose OUR (you pay all charges), SHA (shared) or BEN (the supplier pays). If the contract is silent, the cost of performing falls on the side performing, which for a payment is you (Civil Code art. 511). Agree it, and pick the matching option.
What does "T/T against copy of B/L" mean?
You pay the balance when the supplier sends a copy of the bill of lading, showing the goods have shipped. The supplier still controls release until it hands over the original bill or arranges a telex release. Ask how the goods will be released to you once you pay.
I check the payee and payment terms against the company you contract with →
Sources and translations
- Civil Code of the PRC (2020), arts. 511, 522 and 557.
- SPC Interpretation on the Civil Procedure Law (2022 revision), art. 91.
Translations are mine and unofficial.
Official texts cited in this article.
- Civil Code of the PRC (2020) npc.gov.cn
Have a China-side question?
Give us the supplier's name as it appears on the quotation or invoice. List the documents you have, such as the contract or order and the supplier's last message. The responsible lawyer replies within one calendar day. We will tell you where you stand and what your options are.