Today, countries not only cooperate and help each other politically but also regularly import and export goods back and forth. Many words in the payment field are denoted differently, making it difficult for you to understand the meaning.
Such as what is TTR? Is TTR different from TT? For better understanding, the following content will explain to you.
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What is TTR?
TTR is an acronym for the English phrase Telegraphic Transfer Reimbursement, well known through the L/C payment method.
Usually, people still talk about what is TTR and what is the relationship between TT and TTR?
In fact, to understand more about TTR you also need to know what TT is? TT is a method of transferring money by electricity, which is characterized by a combination and independent payment element.
Relationship between TTR and TT
People still refer to TT as a form of international payment in which the buyer asks the bank to transfer an amount of money to the seller in the form of electricity.
In case, the credit payment of L/C merges with TT, two other components are created, i.e. TTR and TT. If the L/C recognizes TTR, the bank will make the final settlement provided that the person working for the exporting party must provide a set of documents with appropriate legal validity.
At that time, the bank will make a payment decision after 3 days from the time of L/C recognition.
Many people think that TT and TTR payment methods are the same, but that is not entirely true. TT is only used in L/C when:
- Case 1: the bank’s side opens the L/C method to settle for the exporter when the bank decides to call for money. However, this only happens when the set of documents is correct.
- Case 2: the bank’s side opens the L/C method to deal with the discount with 2 conditions: firstly, after receiving the correct set of documents, secondly, a request for money from the bank discount.
On the other hand, TT can still become TTR and be used in L/C when the bank’s side opens the L/C to settle the discounting bank but only when receiving a request for money from this bank. In this case, the document is not required to come first. In general, the two methods TT and TTR are completely different in nature but similar in form.
Discover postpaid payment procedures
In addition to wondering what TTR is, many of you still do not understand how the payment process of TTR will take place?
For the postpaid TTR payment method, the buyer will only pay the supplier after receiving the goods.
Note: the buyer only pays when receiving the goods with the original documents and customs declaration.
Regarding the payment process, the buyer will be responsible for bringing the original documents to be copied into another table. After having copies, the buyer brings the money order back to the bank for the bank to make payment by wire transfer.
However, you also need to note that there must be enough money in the buyer’s account to pay the commercial invoice.
In case, the buyer does not have enough money in the foreign currency account, it is necessary to make a foreign currency purchase application. At that time, the bank will proceed to deduct Philippines money from the Philippines money account to buy foreign currency and transfer it to that account.
The process of consulting and transferring foreign currency money will be specifically advised by the bank, after completion, the bank will pay – telegraph the supplier according to the money transfer order.
To ensure that there are no problems later, you need to keep some documents so that when the customs checks, there will be proof of control.
Documents to keep include:
- a money order
- a wire transfer with the bank’s stamp and original set of documents.
Above is some information about L/C payment methods with detailed explanations. In it, you have also been answered specifically what TTR is as well as the relationship between TTR and TT. To better understand the TTR payment process later, don’t forget to refer to the sharing in the article!