What is a telegraphic transfer (T/T)?
By George Korn, Founder · Last updated September 8, 2026
A telegraphic transfer is simply an international bank wire, usually over SWIFT; the telegraph died, the name stayed. In China trade, T/T is the default instrument, and the phrase T/T 30/70 means a 30% deposit to start production and 70% balance before shipment. The wire itself is safe; the schedule is where buyers win or lose.
On this page
An old name for a normal wire
When a supplier asks for T/T, they are asking for a standard cross-border bank transfer to a company account. Costs run from a fixed fee of roughly $15-50 plus intermediary bank charges and the exchange spread; funds land in one to four business days. Nothing exotic, and that is the point: no platform in the middle, no reversal once received.
The 30/70 that actually protects you
Deposits finance materials; balances reward delivery. The difference between a risky order and a controlled one is the trigger of the 70%:
| Schedule | Balance trigger | Risk profile |
|---|---|---|
| 30/70 before shipment | Factory says goods are ready | You pay on the factory’s word |
| 30/70 after inspection | A passed pre-shipment inspection report | You pay on evidence; our standard |
| 30/70 against B/L copy | Goods on the vessel | Shipment proven, quality not |
| 100% upfront | Nothing | Never on a first order, whatever the discount |
The real T/T risks (and none are the wire)
Beneficiary fraud: hacked email threads swapping in a mule account; always verify new bank details by a second channel, and treat a personal account name as a stop signal. Quality leverage: once the balance is paid, your negotiating power is zero; sequence payment after inspection. Currency: agree the invoice currency up front; paying RMB via proper channels sometimes buys a better price than USD.
Our orders run T/T with the balance tied to a passed 1-by-1 inspection, and the factory’s own invoice in your file: the model described on our fees page.
What a T/T really costs
Three layers: your bank’s outgoing wire fee (commonly $15-50), intermediary and receiving charges (share OUR/SHA/BEN wisely: OUR means you carry all fees and the factory receives the full amount, the usual expectation in China), and the FX spread, the quiet one, often 1-3% hidden in the rate. On recurring volume, negotiating the spread or paying suppliers in RMB through proper channels typically saves more than any haggling on the wire fee.
FAQ
Is T/T safer than PayPal or a platform payment?
It is cheaper at order size and irreversible. Safety comes from who you pay and when, not from the rail: verified supplier, inspection-gated balance.
Why do factories insist on a deposit?
It buys fabric, components and line time. A factory asking for no deposit is either very large or pricing the risk into your unit cost.
Can I pay a Chinese supplier’s personal account?
Treat it as a red flag. Company invoice, company account, matching names: anything else breaks the audit trail you will want later.
Wire with evidence, not hope
Deposit to start, balance after a passed inspection, original factory invoice in your records. That is the whole trick.
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