How to pay suppliers in Turkey: A Complete Guide

Planning to import products from manufacturers or wholesalers in Turkey? In this guide, we explain what European, Middle Eastern and American buyers must know about payment methods, currencies, and fraud prevention in relation to paying Turkish suppliers.

Which currencies do Turkish suppliers accept?

Suppliers in Turkey generally accept payments in both US dollars and Euros. It is standard practice that suppliers issue invoices in the buyer’s preferred currency on the invoice. Keep in mind that the bank account number can differ for their USD account compared to the EUR account.

Example

EUR: TR03 0000 0000 0000 0000 0000 00
USD: TR73 0000 0000 0000 0000 0000 00

Bank transfer

Most manufacturers in Turkey expect payment by bank transfer, which is also known as wire transfer or telegraphic transfer. Before doing so, you must obtain the bank account details from your supplier.

Example

• Beneficiary: TEKSTİL VE PLASTİK SAN. TİC. LTD. ŞTİ
• Account number: TR03 0000 0000 0000 0000 0000 00
• Bank: Türkiye Garanti Bankasi A.S
• Swift: TGBATRISXXX

The sending bank may also require the company address and the bank address

Transfer fees

Most suppliers in Turkey issue invoices based on the amount they expect to receive. If your proforma invoice is 50,000 euros, then that is the exact number they want to see on their bank account.

It is therefore expected that you as the sender cover both the sending and receiving bank transfer fees.

Payment scams

Make sure that the beneficiary name matches that of the supplier. For example, if the company name is Lio Kuyumculuk San. ve Tic. Ltd. Şti – then the beneficiary should match this company name.

I have noted that there can be minor differences though – for reasons I don’t know as I neither speak Turkish nor have ever opened a bank account there.

In any case, reject all payments to offshore accounts wherever they may be located – or those held by individuals or seemingly unrelated companies.

I cannot say that the risk of payment scams is higher in Turkey than elsewhere, but it’s always important to be aware of these principles.

What are the standard payment terms in Turkey?

If you have previously imported goods from China, then you are probably familiar with 30/70 payment terms. In other words, a 30% deposit is paid before production – and the rest is paid after quality inspection but before shipment.

The same payment terms normally apply when paying suppliers in Turkey as well. Some suppliers may require a 50% deposit payment.

In any case, you should never accept a 100% upfront payment as this gives you no recourse in case quality issues are found during the pre-shipment inspection.

Does your bank allow payments to Turkey?

Some of our European customers have had difficulties paying suppliers in Turkey in recent years. For reasons that are unknown to us, some banks consider Turkey to be a “high risk country” and therefore require companies to apply to their banks before they can make payments to suppliers in the country.

Make sure that you confirm with your bank if you are cleared to pay suppliers in Turkey well before you need to make your first payment. The application process can take weeks, or even months – assuming it is approved in the first place.

This situation is certainly not helping European companies looking for suppliers closer to home – especially when Turkey is (seemingly unfairly?) grouped together with Russian occupied Donetsk or Myanmar.

Can we pay via letter of credit?

Some suppliers in Turkey also accept letter of credit payment. Doing so means that your bank finances the order for you, and you pay them later.

In between, the payment is released based on a number of conditions that you and the supplier agree on. This could, for example, include the following:

• Airway bill issued by DHL
• Quality inspection report issued (and approved) by MARS Quality
• Lab test report issued (and passed) by TUV Rheinland

The more specific you are, the better.

That said, letter of credit payments are normally only accepted by Turkish suppliers if your order volumes reach at least 50k euros or US dollars. If anything less than that, a bank transfer is normally the only accepted payment method.

PayPal and Credit Card

Some suppliers in Turkey accept product sample payments made via PayPal or other card solutions. Some Turkish suppliers also operate as wholesalers, in particular in the jewelry industry, and may therefore offer payment by card.

That said, this is not the standard payment solution for most factories in the country.

FAQ

Can we expect credit from Turkish suppliers?

No, you should not expect that you can order now and pay later unless your company is on the list of Fortune 1000. Even a single failed payment could drive a factory to bankruptcy, and that is obviously a risk they cannot take.

Can we pay Turkish suppliers in EUR?

Yes, most export oriented manufacturers in Turkey accept payment in euros. Companies in the EU can therefore settle payments in their own currency – and receive invoices in euros as well.

Can we pay Turkish suppliers in USD?

Yes, USD is often accepted as an alternative currency to euros by Turkish suppliers. Keep in mind that the USD bank account number is normally different.

Can we pay Turkish suppliers in GBP?

I am personally not aware of any of our customers paying Turkish exporters in GBP, but this should technically be possible.