International Resource Center Frequently Asked Questions
Click the links below to view FAQs for each topic:
How do I make a payment to a recipient overseas?
There are two main methods: sending an international wire transfer or purchasing a foreign 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 Bank.
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 200 countries and territories. The SWIFT community includes banks, broker-dealers and investment managers.
What is the fastest method for making an international payment?
A wire transfer is more efficient than a foreign draft as funds are made available sooner. To complete a wire transfer, you must know the banking information of your recipient.
Is sending U.S. dollars the best way to send a payment to an overseas beneficiary?
Generally, it may be beneficial to send your payment in the local currency of the beneficiary (e.g., Pounds Sterling for the United Kingdom). 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.
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 wire 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.
Failure to provide the IBAN reduces the opportunity to process the payment straight-through (STP), which may subject you to additional repair charges, and could result in return of the payment.
Who do I contact to arrange a wire transfer in a foreign currency or get a foreign draft?
Your local TD Bank store can assist you with arranging a wire transfer in a foreign currency or obtaining a foreign draft.
What information should I provide to the originator of a foreign (non-U.S. Dollar) wire payment in order to get the money into my account at TD Bank?
Incoming Foreign Currency Wire Payment Instructions
- Correspondent Bank SWIFT Code: TDOMCATTTOR
- Correspondent Bank Name: The Toronto-Dominion Bank, Toronto, Ontario, Canada
- For Further credit to: TD Bank, Store Address: Street, City, State, Country
- In Favor of Beneficiary Account Number: Your TD Bank account number as it appears on your statement
- In favor of Beneficiary Full Name and Full Address: Your name and address as it appears on your TD Bank account statement
Will TD Bank continue to offer international wires? I heard there was a new regulation and that some banks will no longer offer international wire transfer services.
TD Bank will continue to offer international wires.
About the Dodd-Frank Remittance Transfer Regulation
The Consumer Financial Protection Bureau has issued new rules to protect consumers who send funds electronically to foreign countries. This rule, known as Dodd-Frank Remittance Transfer is effective as of October 28, 2013, and is intended to provide customers who send international wire transfers more complete information about fees and foreign exchange rates associated with the international wire transfer, as well as disclosure of the date when funds will be made available to the receiving party. The rule also addressed customers' rights in terms of investigation of international wire transfers who may have encountered an issue in the initiation or processing of the international wire transfer. TD Bank, NA, is prepared to comply with the requirements of this new regulation.
When I deposit a check drawn on a bank outside the U.S., how is it cleared?
TD Bank can clear overseas checks in a variety of foreign currencies and U.S. Dollars using TD Bank's network of correspondent banking relationships. Some checks are eligible for immediate provisional credit – until it is finally settled by the issuing bank – while some items must be sent out on "collection" for final payment. Collection items 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 Bank Customer, you may order foreign currency from your local TD Bank store. While traveling, you can also use your credit card or your TD Bank Visa® Debit Card to make purchases or to get cash at an ATM.
What are my payment options for doing business overseas?
There are four main options: payment in advance, letter of credit, documentary collection or open account.
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 Bank Global Trade Finance representative at 800-937-8226 to find out which option is best for you.
How do I obtain a letter of credit (import/standby) from TD Bank?
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 Bank store; 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 or standby letter of credit application. The completed application is processed by the TD Bank Global Trade Finance 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 Bank Trade. View our TD Bank Trade information online and/or call TD Bank Global Trade Finance at 800-937-8226 for more details.
Can the exporter receive the advice of the letter of credit online?
TD Bank Customers may receive the advice of a letter of credit online when they use our online trade services system, TD Bank Trade. Call TD Bank Global Trade Finance at 800-937-8226 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 Bank 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.
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.
How can I get foreign currency for a trip I am taking abroad?
If you are a TD Bank Customer, you may order foreign currency at any TD Bank store and pick up your order within two business days. We also maintain a large inventory of foreign currency at our Rockefeller Plaza, New York City store, so if you live in the vicinity you can pick it up immediately instead of ordering it ahead of time. View the list of currencies we offer
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 Bank Customer, you may visit a local TD Bank store to place an order and then pick up within two business days.
Can I use my TD Bank Visa Debit Card at a bank overseas to obtain local currency?
Yes. 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 Bank?
Yes. TD Bank 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 Bank International Services at 888-BNG-INTL (888-264-4685) for more details.
Does TD Bank offer deposit accounts in foreign currencies?
Yes. TD Bank 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 Bank'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 Bank International Services at 888-BNG-INTL (888-264-4685) to find out how we can help you compete in the global marketplace.