The Telegraphic Transfer is standard bank transaction, placed either through your internet bank, or in a local bank branch. This payment method is accepted by all Chinese manufacturers with a bank account. Virtually all that is. Albeit common, it offers no protection by itself, unlike the Letter of Credit, which I'll get back to in abit.
T/T Payment process
1. Deposit payment (30%)
2. Production starts
3. Production completion
4. Quality Inspection/ Compliance testing
5. Buyer approves batch
6. Delivery to the Port of Loading (e.g. Shanghai)
7. Bill of Lading Scan Copy provided
8. Loading & Shipment
9. Balance payment (70%)
10. Seller sends original Bill of Lading and other freight documents (required to release cargo in Port of Destination)
a.Recommended division between deposit and balance payment: 30% Deposit (Before Production) / 70% Balance (After Production)
b. Never pay the deposit before you have a signed and stamped Sales Contract &Perform a invoice.
c. Never pay the balance before you have completed any Quality Inspections (in China) or received Product Test results (for example REACH, RoHS and CA Prop 65)
d. Never prepay 100% before production. By doing so, you remove the suppliers incentive to remake or repair defective or non-compliant items.
e. Most Trading Companies also require you to pay a deposit about 30 days before delivery to Port of Loading (in China). The reason is simply that most Trading companies in China don't have ready-made products in stock but is rather subcontracting your order to a local factory.