T/T Payment (Telegraphic Transfer) Guide for International Trade
Complete commercial banking manual on international wire transfers, SWIFT network routing, milestone deposit structures, fee instructions (OUR vs SHA vs BEN), and fraud prevention protocols when procuring custom apparel and bulk blanks from Philippine manufacturers.
What is T/T Payment (Telegraphic Transfer)?
In international commerce, T/T (Telegraphic Transfer) is the standard term used to describe an electronic international wire transfer from a buyer's commercial bank account to an overseas seller's bank account via the SWIFT network (Society for Worldwide Interbank Financial Telecommunication). Although historical terminology referred to telegraphic cables, modern T/T transactions are high-speed, encrypted digital funds transfers clearing through global correspondent banking networks.
Fast Clearing Time
International T/T payments typically credit the beneficiary account within 1 to 3 business days, depending on currency cut-off times, intermediary correspondent banks, and time zone differences between the originating country and the Philippines.
Multi-Currency Settlement
Philippine commercial export accounts accept major global currencies without mandatory forced conversion. Buyers can instruct wire transfers in US Dollars (USD), Euros (EUR), Australian Dollars (AUD), or Philippine Pesos (PHP).
Global Industry Standard
Over 80% of global garment, textile, and OEM manufacturing trade utilizes T/T payments because of its high efficiency, low bank processing fees compared to Letters of Credit (L/C), and direct linkage to production milestones.
Standard T/T Milestone Payment Schedules
To balance risk between international buyers and manufacturers, export contracts divide T/T transfers into agreed milestones tied directly to physical production and shipping deliverables.
Sample & Pre-Production
100% T/T advance payment for digital pattern drafting, fabric swatches, lab dips, and physical pre-production sample creation before bulk commitment.
30% to 50% Advance Deposit
Mobilization wire payment sent upon sample approval to secure bulk yarn knitting, fabric roll dyeing, cut-and-sew scheduling, and custom trims procurement.
Quality Inspection (QC)
Garments undergo final AQL 2.5 quality control inspection, dimension audits, packing validation, and weight verification at the factory.
50% to 70% Balance Payment
Final balance wired against presentation of the non-negotiable Bill of Lading (B/L) copy, commercial invoice, and packing list prior to telex release or courier dispatch.
SWIFT Banking Charge Codes: OUR vs SHA vs BEN
When submitting an international T/T transfer at your bank, you must select who covers the intermediary and beneficiary banking fees. Choosing the wrong instruction is the number one cause of invoice balance shortfalls and delayed container releases.
The remitting buyer pays all originating bank fees, intermediary correspondent bank fees, and beneficiary receiving charges up front.
The buyer pays their local bank charges, while intermediary banks and the beneficiary bank deduct their handling fees directly from the transmitted funds.
All originating, intermediary, and receiving charges are deducted from the principal payment amount before crediting the manufacturer.
T/T Wire Transfer vs Letter of Credit (L/C): Trade Comparison
Both methods are widely recognized under international commercial banking rules. For large-scale manufacturing contracts, institutional tenders, or enterprise wholesale orders, consult our complete Letter of Credit (L/C) Guide. Here is how they compare across key operational criteria:
| Comparison Factor | T/T (Telegraphic Transfer) | Letter of Credit (L/C at Sight) |
|---|---|---|
| Transaction Costs | Low flat wire fee (typically $20 to $45 USD total per transfer). | High bank percentage charges (1.0% to 3.5% of total order value plus opening and amendment fees). |
| Processing Speed | 1 to 3 business days for instant funds clearance. | 10 to 21 business days for bank documentation vetting and negotiation. |
| Discrepancy Risks | Zero clerical discrepancy risk: funds move directly between bank accounts. | High risk: minor typos or packing list differences can cause bank rejections and penalty fees. |
| Best Suited For | Apparel orders from $2,000 to $100,000 USD, custom OEM runs, repeat commercial buyers. | High-value enterprise transactions exceeding $100,000 USD and government institutional tenders. |
| Production Flexibility | Allows immediate production start once initial milestone deposit reflects in account. | Production must wait until the issuing bank formally confirms and authenticates the L/C. |
Required Banking Information for T/T to the Philippines
When instructing your bank to initiate an international wire transfer to PHShirt / RB Advertising, your wire remittance slip must include these essential data fields:
Essential Security Protocols for International Wire Transfers
Always verify proforma banking details before sending funds. PHShirt will never email you from an unverified public domain requesting last-minute changes to beneficiary bank account details. If you ever receive an email claiming our banking details have changed, immediately stop the transfer and verify directly with your dedicated sales manager via phone or authenticated WhatsApp (+63 946 048 0491).
Frequently Asked Questions: T/T Wire Transfers
What is an MT103 and why do manufacturers request it?
An MT103 is the official standardized SWIFT message receipt generated by your bank when an international wire transfer is executed. It contains all key tracking information: sender, receiver, intermediary banks, value date, and exact amount transferred. Sending a copy of your bank's MT103 allows our treasury department to track incoming funds with Philippine correspondent banks and schedule production without waiting for the settlement to fully post.
How long does an international T/T transfer take to arrive in the Philippines?
Most international wire transfers arrive in the Philippines within 1 to 3 business days. Transfers sent early in the day from Asia or Europe often clear within 24 to 36 hours, while US-originating transfers typically take 48 hours because of timezone differences and New York correspondent clearing schedules.
Why is the OUR fee instruction preferred over SHA?
Under SHA (Shared), intermediary routing banks frequently deduct processing tolls ($15 to $35 USD) directly from the transferred sum. When this occurs, the net amount received in our account is slightly less than your invoice total. Selecting OUR ensures your bank bills you directly for all transfer costs, allowing 100% of your invoice amount to arrive intact and preventing administrative delays.
Can our company pay via T/T in our local currency?
We primarily quote export orders in US Dollars (USD) or Euros (EUR) to provide stable pricing insulated from short-term currency volatility. However, if your company prefers to remit in Philippine Pesos (PHP) or another agreed currency, we can issue proforma invoices with guaranteed spot conversion rates.
How does T/T payment interact with Incoterms (FOB, CIF, DDP)?
Payment terms and shipping Incoterms function together in your sales contract. Under FOB (Free On Board) or CIF (Cost, Insurance, and Freight), the 30% advance deposit funds garment manufacturing, while the remaining 70% balance is released against presentation of the on-board Ocean Bill of Lading (B/L) copy before cargo arrival. Under DDP (Delivered Duty Paid), all freight and destination duties are included in the commercial invoice total settled via T/T.
Need Formal Proforma Invoicing or Banking Assistance?
Connect directly with our international export sales and trade documentation desk. We prepare detailed proforma invoices with complete SWIFT codes, correspondent routing instructions, and verified commercial terms for your corporate finance department.