5.3 Payment Transaction by T/T
一、Cover Payment Method
5.3 Payment Transaction by T/T
一、Cover Payment Method 1、Only One “Instruction” Received 2、Properly Match the MT202 with the MT100
Payer （Creditor）
2、Procedure
Remitter （Debtor）
1.Remittance Application
3.Effect Payment
2.Payment Order by post
Remitting bank
Paying bank
5.2 Means of Remittance
5.Effect Payment
Remitting bank
6.Claim
Paying bank
5.3 Payment Transaction by T/T
一、Cover Payment Method 二、Serial Payment Method 三、Guideline to Interbank Compensation
5.2 Means of Remittance
T/T
[EXERCISE]: TEST_____ VALUE （DATE）________ OUR REF_________ PLEASE DEBIT OUR A/C OR ____________BRANCHES’A/C OR OUR HO A/C PAY AMOUNT _________ TO ________BANK FOR CREDIT OF _____BANK IN FAVOUR OF _____________A/C NO.__________ REMARKS___________
1、 Remitter/importer （1）Remittance application （2）Submit the amount of funds and commission to the bank.
The payee usually is the exporter in international trade.
5.2 Means of Remittance
Telegraphic Transfer T/T Mail Transfer M/T Demand Draft D/D Credit Card Tracveller’s Cheque E-banking
5.2 Means of Remittance
5.2.1 T/T 1、Definition： The remitting bank sends the P.O. to the paying bank by SWIFT ,authorizing the paying bank to make payment to the payee.
5.2 Means of Remittance
5.2.2 D/D
1、Definition
On the request of the remitter, the remitting bank draws a demand draft on its correspondent bank ordering the latter to pay on demand to the payee upon presentation .
2、 Payee or beneficiary/exporter
3、 Remitting bank Payment order should be made out as instructed in the application.
The remitting bank accept the remitter’s consign and transact the remittance
M/T
[Case 2]： BANK OF CHINA ，GUANGZHOU BRANCH GUANGZHOU TO: CITI Bank, New York Please advise and effect the following Payment less your charges if any. In cover, we have CREDITED your A/C with us. NO. of Mail transfer 123456 To be paid to ABC Corp., New York, USA for USD50,000 Amount in Words: US Dollars Fifty Thousands Only. Message BANK OF CHINA ，GUANGZHOU BRANC
Swift
5.2 Means of Remittance
T/T 2、Procedure
Remitter （Debtor） Payer （Creditor）
1.Remittance Application
3.Effect Payment
2.Payment Order by SWFIT
Remitting bank
5.4 Guideline to Interbank Compensation In the process of payment transfer, some mistakes may occur, such as late payment, duplicate payment, wrong account at right bank . Rules of Interbank Compensation is worked out to settle the dispute among banks.
Draft
5.2 Means of Remittance
5.2.1 Means of Remittance—D/D
3. Forward Draft
2、Procedure
Remitter （Debtor） Payer （Creditor）
1.Appication
2.Issue Draft
4.Present Draft
The paying bank usually is the correspondent of remitting bank.
4、 Paying bank （1）Paying in strict compliance with the P.O. and authenticate the relevant signature or test sky; （2）Paying after its receipt of the funds from the remitting bank .
5.2 Means of Remittance
T/T
[案例1]： FM：BANK OF ASIA，TIANJIN TO：THE HONGKANG AND SHANGHAI BANKING CORP.， HONGKONG DATE：1ST MARCH TEST 1253 OUR REF. 208TT0517 NO ANY CHARGES FOR US PAY USD 20000. VALUE 1ST MARCH TO YOUR HAY WAY BUILDING BRANCH 58 STANLEY STREET HONGKONG FOR ACCOUNT NO.004-110-106028-001 FAVOUR PRECISION PHOTO EQUIPMENT LTD.HONGKONG MESSAGE CONTRACT NO. P10158 ORDER PHOTOGRAGH CO.TIANJIN COVER DEBIT OUR HO ACCOUNT.
5.3 Payment Transaction by T/T
一、Cover Payment Method 1、MT100 payment order to the beneficiary’s bank; 2、MT202 payment order to its bank with nostro account to instruct the bank to debit its account and credit the U.S. bank with nostro account of the beneficiary’s bank.
Paying bank
5.2 Means of Remittance
T/T 3、 Payment Order
FM: Remitting bank TO: Paying bank DATE: TEST: OUR REF NO. NO CHARGES FOR US PAY(AMT) VALUE (DATE) TO(BENEFICIARY) MESSAGE ORDER/BY ORDER OF (B/O) COVER
Chapter 5 Means of Int’l Settlement— Remittance
5.1 Definition
Remittance refers to the transfer of funds from one party to another among different countries ittance
5.2.1 M/T
1、 Definition The remitting bank transfers the funds by mailing.
5.2 Means of Remittance
5.2.1 Means of Remittance—M/T
Parties of Remittance
1、 Remitter/importer 2、 Payer or beneficiary/exporter 3、 Remitting bank 4、 Paying bank