TT payment terms mean you've agreed to pay by bank transfer before goods ship or services start
TT stands for telegraphic transfer, an older name for what's now called a wire transfer or bank-to-bank payment. When an invoice says "TT payment terms," it means the seller expects payment through direct bank transfer, usually before they deliver anything or begin work. The exact timing—whether payment is due when ready, within 7 days, or 30 days after the invoice date—depends on what you and the seller agreed to.
TT terms are common in international trade, manufacturing, and B2B transactions where sellers want to reduce the risk of non-payment. Once your bank sends the money, it's gone; the seller has already received it. That's why sellers prefer TT over checks or credit terms. For you as the buyer, it means you need to know the payment important date and have the funds ready before that date arrives.
Key Takeaways
- TT payment terms require you to transfer money by bank wire, usually before the seller ships goods or starts work.
- The payment important date is part of your agreement—common terms are TT within 7 days, TT within 30 days, or TT in advance.
- Once the bank sends a wire transfer, the money cannot be recalled, so verify the seller's bank details before you send anything.
- If you miss a TT payment important date, the seller can stop work, hold shipment, or cancel the order depending on your contract.
- Bank wire fees vary by your bank and the destination country, so factor that cost into your budget when you receive an invoice with TT terms.
How the timeline works: when payment is actually due
The number that comes after "TT" tells you how many days you have. "TT/7" means you have 7 days from the invoice date to send the wire. "TT/30" means 30 days. "TT in advance" or "TT/0" means payment before anything happens—before the seller ships, manufactures, or starts the work.
The clock usually starts on the invoice date, not the date you receive it. If an invoice is dated January 10 and says TT/7, payment is due by January 17, even if the email doesn't reach you until January 12. Check your invoice for the exact date and count forward. If the due date falls on a weekend or holiday, confirm with the seller whether they expect the money to arrive on that day or on the next business day.
Missing the important date has real consequences. The seller can refuse to ship, halt production, or cancel the order outright. Some sellers will charge a late fee or require payment in full upfront before they'll continue. If you know you'll miss the date, contact the seller when ready and ask for an extension in writing—don't wait until the important date passes.
What you need to know before you wire the money
A bank wire is irreversible once it leaves your account. You cannot cancel it or get the money back if you send it to the wrong account or if the seller disappears. Before you initiate any transfer, verify the seller's bank details directly with them—call them, use a phone number from their official website, or ask them to confirm the details in writing on their letterhead.
Never rely on bank details in an email alone, especially if the email came unexpectedly or from an address you haven't seen before. Scammers intercept invoices and send fake payment instructions with their own bank account. If something feels off—a new seller, an unusually large order, or a request to wire to a different country than where the company is based—ask questions before you send anything.
Your own bank will charge a wire fee, typically between $15 and $50 for a domestic transfer and $25 to $75 for an international one. Some banks charge both an outgoing fee and a receiving fee. Ask your bank what the total cost will be before you wire, and decide whether to absorb that cost or ask the seller to cover it. International wires can take 1 to 5 business days to arrive, so don't assume the money is there when ready.
TT terms versus other common payment methods
| Payment Term | How It Works | When You Pay | Risk to You |
|---|---|---|---|
| TT (Telegraphic Transfer) | Bank-to-bank wire transfer | Before or on the due date | Money is gone once sent; no recourse if seller doesn't deliver |
| Net 30 | Invoice issued; you pay within 30 days | Up to 30 days after invoice date | Low—you have time to verify goods before paying |
| COD (Cash on Delivery) | You pay the carrier when goods arrive | Upon delivery | Low—you inspect goods before handing over money |
| Letter of Credit | Bank guarantees payment if conditions are met | When seller meets contract terms | Medium—requires bank involvement and fees |
| Credit Card | Charge to card; pay card bill later | When you pay your card bill | Low—you can dispute charges if goods don't arrive |
TT terms shift the risk entirely to you. You pay first, and the seller has no incentive to deliver if they don't want to. With Net 30 or COD, you have leverage—you can refuse payment or inspect goods before paying. With a credit card, your card company will back you up if the seller vanishes. TT offers no such protection.
If you're uncomfortable with TT terms, ask the seller if they'll accept Net 30, COD, or a letter of credit instead. Many will negotiate, especially if you're a repeat customer or ordering a large quantity. If they refuse and you don't trust them, that's a signal to find a different supplier.
What happens if the seller doesn't deliver after you pay
If you wire the money and the seller doesn't ship or doesn't complete the work, you have limited options. Your bank cannot reverse a wire transfer once it's been sent and received. You cannot dispute it the way you can dispute a credit card charge. Your only recourse is to pursue the seller directly—demand a refund, threaten legal action, or file a complaint with their bank or business regulator.
If the seller is in another country, legal action becomes expensive and slow. Small claims court won't help you recover money from overseas. Your best protection is to deal only with sellers you've verified, to use a middleman service like an escrow account for large orders, or to request a partial TT payment upfront and the rest on delivery.
If you believe you've been defrauded, report it to your bank's fraud department and to the Federal Trade Commission at reportfraud.ftc.gov. Your bank may be able to freeze the receiving account if they act quickly, but this is rare and depends on whether the receiving bank cooperates.
How to structure TT terms if you're the one requesting payment
If you're sending an invoice with TT terms, be explicit about the important date and the bank details. Write "Payment due: TT within 7 days of invoice date" rather than just "TT/7"—it removes ambiguity. Include your full bank details: account holder name, account number, routing number (for US banks), SWIFT code (for international transfers), and the bank's name and address.
Consider offering a small discount for early payment—"2% discount if paid within 3 days"—to speed up cash flow. If you're dealing with a new customer or a large order, ask for a deposit upfront and the balance on delivery. This splits the risk between you and the buyer and makes both parties more comfortable.
If a customer misses the TT important date, decide in advance whether you'll charge a late fee, pause work, or cancel the order. Put this in your terms and conditions so there's no surprise. Communicate the consequence clearly and in writing as soon as the important date passes.
Frequently Asked Questions
Can I cancel a wire transfer after I've sent it?
No. Once your bank sends a wire transfer, it cannot be recalled or reversed. If you sent it to the wrong account or suspect fraud, contact your bank when ready—they may be able to contact the receiving bank and ask them to freeze the account, but this rarely works. Prevention is your only real option: verify the account details before you send anything.
What's the difference between TT and SWIFT?
TT is the payment method (bank wire transfer). SWIFT is the system banks use to send international wires. When you wire money internationally, your bank uses the SWIFT network and requires a SWIFT code (also called a BIC code) from the receiving bank. For domestic US transfers, you use a routing number instead. Both are wire transfers; SWIFT is just the international version.
Do I have to accept TT payment terms if a seller insists?
No. You can negotiate. Ask the seller if they'll accept Net 30, COD, a letter of credit, or a split payment (deposit now, balance on delivery). Many sellers will work with you, especially for repeat orders or large quantities. If they won't budge and you don't trust them, you can walk away and find another supplier.
What if the seller's bank is in a different country?
International wire transfers take longer (1 to 5 business days) and cost more. You'll need the seller's SWIFT code, account number, and bank address. Your bank will charge a fee, and sometimes the receiving bank charges a fee too. Ask your bank for the total cost before you wire. The money will eventually arrive, but don't assume it's there the next day.
Can I use a credit card to pay TT terms?
Rarely. Most sellers who request TT terms specifically want a bank wire because they don't want to pay credit card processing fees (typically 2 to 3%). If you ask to pay by credit card instead, they'll usually say no. If they do accept it, you'll have buyer protection through your card company, which is much safer than a wire transfer.