International Frequently Asked Questions

What is the difference between a wire transfer and a draft?
International wire transfers are typically sent out over an international communications system known as SWIFT, and settlement is arranged between individual banks.

A foreign draft is like a cashiers check in local currency drawn on an account maintained by TD Banknorth.

While sending a wire internationally is different than sending one within the U.S., it's much faster than purchasing a foreign draft. However, if you are unable to obtain the banking information of your recipient required to arrange a wire transfer, then a foreign draft is your best choice.

What is SWIFT?
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is an industry-owned co-operative providing secure, standardized messaging services and interface software to over 8,000 financial institutions in 207 countries and territories. The SWIFT community includes banks, broker-dealers and investment managers. The broader SWIFT community also encompasses corporations as well as market infrastructures in payments, securities, treasury and trade.

What is the fastest method for making a payment?
A wire transfer is more efficient than a foreign draft because funds are made available sooner. To complete a wire transfer, you must know the banking information of your recipient. It is also better to send your payment in the local currency, for example, Euros in France or Germany or Pounds Sterling for the United Kingdom.

Is sending U.S. dollars the best way to send a payment to an overseas vendor?
Generally, it is more cost effective to send foreign currency via TD Banknorth. U.S. Dollars sent to an account in a foreign currency will take longer and incur higher bank charges than if you send the local currency. Also, your overseas vendors may be adding those charges to the bills they are sending to you. Call our International Services representatives at 888-BNG-INTL (888-264-4685) to learn how we can efficiently help you send foreign payments.

What is an IBAN?
As Europe is moving to the Single Euro Payments Area (SEPA), the European Union (EU) – as well as Norway, Iceland, Liechtenstein and Switzerland – have made a series of regulatory changes designed to improve straight-through processing of payments and reduce costs.

A key element of this transition is the introduction of the International Bank Account Number, or IBAN – the new domestic account number standard for all retail and commercial banking accounts in the EU. IBANs are assigned by the European banks to their corporate customers and can be found on invoices and/or settlement instructions you receive from your counterparties.

The IBAN consists of up to 34 alphanumeric characters: two characters are used to identify the country in which the counterparty's account resides; two characters are used for check digit verification; and the rest identify the account holding bank and the counterparty's account number.

Why do I need to use the IBAN?
Your payments can still be made without an IBAN, but you should ask your European beneficiaries for it and supply it to us with the payment details. Your beneficiaries will be familiar with the request, and the whole process will go more smoothly.

If you do not supply the IBAN in your payment instructions, you are in effect, supplying an incorrect account number. Failure to provide the IBAN reduces the opportunity to process the payment straight-through (STP). This may subject you to additional repair charges, and could result in return of the payment.

While these STP requirements started out applying only to intra-EU Euro payments, they are now applied by many European banks to any payment which originates outside the EU regardless of currency.

How are international wire transfers different than domestic wire transfers?
While most banks in the U.S. utilize a payment system known as the Federal Reserve Wire, there is no single payment system for the rest of the world. International payments are settled on a bilateral basis between individual banks, but information about the payments is sent and received over the SWIFT system. This is often confusing because SWIFT is a communications system only, unlike the Federal Reserve Wire, which is a payment system. The international payment process is efficient and works within a reasonable timeframe. However, it is vital that you provide the most accurate routing information in order to receive or make a payment in a timely fashion. View our wire transfer forms for more information.

Who do I contact to arrange a wire transfer in a foreign currency or get a foreign draft?
Your local TD Banknorth branch can assist you with arranging a wire transfer in a foreign currency or obtaining a foreign draft.

How do I receive a payment from an overseas remitter? What banking and corporate information should I share with the overseas remitter?
Whether in U.S. Dollars or in foreign currency, TD Banknorth can receive international wire transfers on your behalf. You should provide your remitter with proper routing information. View our Global Incoming Instructions (20k, PDF) to get the information you need.

How are overseas checks cleared?
TD Banknorth can clear overseas checks in a variety of foreign currencies and U.S. Dollars. Some checks are eligible for immediate provisional credit – until it is finally settled by the issuing bank – and some items must be sent out on "collection" for final payment, which can take some time before payment is settled.

When I travel overseas, how would I make payments for purchases?
Before you leave the country, if you are a TD Banknorth customer, you may order foreign currency from your local TD Banknorth branch. While traveling, you can also use your credit card or your TD Banknorth Visa^® Debit Card to make purchases.

Payment in advance is the least risky for a seller in that you receive payment prior to shipping goods and assume no financing costs. However, many buyers won't want to pay in advance.

A letter of credit is one of the safest ways to get paid by overseas customers in that your bank is assuring payment, but, as a buyer, it is the equivalent of a loan for which you must apply.

With documentary collection, payment becomes due when your customer accepts ownership of your goods. Your bank acts as an agent for buyers and sellers, in that the bank maintains control of the title documents, but it does not contain an assurance of payment by the bank.

Open account is the same as in domestic trade in that a seller agrees to grant a buyer "credit" and the buyer agrees to make payment once the conditions of the sale are met. It has the highest risk of non-payment for a seller.

Deciding on which option to use can be complex and involve many different factors. Please contact a TD Banknorth International representative to find out which option is best for you.

How do I obtain a letter of credit (import/export/standby) from TD Banknorth?
Import and standby letters of credit are an extension of credit, like a loan. The bank must make a decision to grant you credit, just as they would for any commercial loan. For small businesses, you need to begin the process by talking to the banking and business development officer at your local TD Banknorth branch; larger corporations should speak with a commercial lending officer. The seller normally provides the specific details of the letter of credit, and you would use that information to complete our Commercial Letter of Credit Application. The completed application is processed by the TD Banknorth International Department once the lending authority at the bank has approved the extension of credit to you.

Can the importer complete the import letter of credit application online?
Yes. Customers, who regularly require letters of credit may utilize our online trade services system, TD Banknorth Trade. View our TD Banknorth Trade information online and/or call TD Banknorth International Services at 888-BNG-INTL (888-264-4685) for more details.

Can the exporter receive the advice of the letter of credit online?
TD Banknorth customers may receive the advice of a letter of credit online when they use our online trade services system, TD Banknorth Trade. Call TD Banknorth International Services at 888-BNG-INTL (888-264-4685) for more details.

Can the importer request the letter of credit be issued in the seller's local currency?
Yes. While many countries, such as China, Taiwan and South Korea prefer U.S. currency, others prefer local currency. TD Banknorth can easily issue a letter of credit in either the local currency or U.S. Dollars.

Can the exporter's letter of credit be made out to be in the local currency of the buyer?
Yes. This is a good way for the seller to remain competitive and to maintain control of the export sale.

If I am selling on a letter of credit basis, how do I get it routed to me?
View the Export Letter of Credit Routing Instructions (39k, PDF) for more information.

What is a standby letter of credit and how is it used?
A standby letter of credit is an obligation of the issuing bank to make payment to the designated beneficiary, contingent on whether the bank's customer fails to perform as called for under the terms of a contract.

The standby letter of credit is issued based on the creditworthiness of the borrower, with an evaluation of credit similar to that for a commercial loan. They are issued by banks for a variety of purposes, including standing behind monetary obligations, insuring the refund of advance payment, supporting performance and bid obligations and insuring the completion of a contract.

Are there any programs to help me obtain working capital to support my export sales activities?
If your working capital line of credit doesn't support your export activities as well as your domestic business, the Working Capital Guaranty program of the Export-Import Bank of the United States and the Export Revolving Line of Credit from the Small Business Administration may be the right solution for you. They support banks in the U.S. who make additional working capital available for exporters. These loans are based on having both exportable inventory and export accounts receivable, and are made to creditworthy borrowers. TD Banknorth brokers both programs.

Can I order foreign currency online?
At this time, we do not have online ordering capability for foreign currency. However, if you are a TD Banknorth customer, you may visit a local TD Banknorth branch or call Customer eCare to order it and you can pick it up at the branch.

Can I use my TD Banknorth Visa Debit Card at a bank overseas to obtain local currency?
Yes. You will need to use an ATM machine with a logo that matches the logo on the back of your card. Due to security risks, use of your ATM or Visa Debit Card may be restricted in certain countries.

Can I trade foreign currency online with TD Banknorth?
Yes. TD Banknorth offers TDFX, our online trading platform for corporations to buy and sell foreign currency spot, forward and for variable date forwards. Learn more about TDFX online, or call TD Banknorth International Services at 888-BNG-INTL (888-264-4685) for more details.

Does TD Banknorth offer deposit accounts in foreign currencies?
Yes. TD Banknorth offers foreign currency accounts in a number of currencies, primarily for commercial depositors. Please call an International Services representative at 888-BNG-INTL (888-264-4685) to learn more about this product.

Are there techniques that I can use to protect myself from the risk of currency fluctuations when buying or selling products overseas?
TD Banknorth's Corporate Foreign Exchange team offers a full complement of foreign exchange products and services and risk management tools, including forwards, options, swaps and blended products. Call TD Banknorth International Services at 888-BNG-INTL (888-264-4685) to find out how we can help you compete in the global marketplace.

How do we clear foreign currency checks through TD Banknorth?
Most customers deposit foreign currency checks directly into their accounts at TD Banknorth to be processed by our Foreign Check Collections team. However, if you have a unique situation or wish to discuss the product in more detail, please call International Services at 888-BNG-INTL (888-264-4685) to speak with our Foreign Exchange experts.