For a long time, that the normal payment is done via wire transfer, konw as T/T (Telex Transfer). It’s a popular handling method in internation business, esp for the medium or larger amont of money. As the preverb says: “No one is perfect”, beside its advantage, it has several shortcoming as follows:
1) Long Time Period
The buyer send money via his bank, then the vendorsÂ wait for money to arrived at their bank. Generally, this period will last at least two or three days because the cross-countries and different banks. Sometimes even longer than 5 days or one weeks, depending upon whereever the countries and whatever the banks of buyer and vendor are. Time is the money, but under this case, no one can speed it up.
2) A Little Higher Bank Fee for Small Amount
For T/T, both parties have to pay the bank fee. When buyer do the transfer, whether it is large amount or small. he must pay the bank fee. Everyone know it. But at the same time, when the vendor receiving the money, maybe he also need to pay certain amout of the third part bank fee.
This bank fee is deducted by Intermediary Bank. Many buyers whom purchased initially from China do not know this is bank fee, but it is here. Because of exchange control, along with other elements, the money from purchaser will transfer through a Intermediary Bank untill it arrived at vendor’s bank account. Showed as follows:
Purchaser Bank – Intermediary Bank – Beneficiary Bank (Vendors)
(Buyer send USD 100 deducted USD 25.00 and only USD 75.00 arrived at Vendor)
The USD 25.00 is wasted!
Is there other method which can overcome these drawbak and take its place? Of course there is. Please view back next time, then we will release a new payment method for small amount.