INTERNATIONAL PAYMENT METHODS

INTERNATIONAL PAYMENT METHODS

• The decision of which method of payment must be used depends on:

• The risk assumed by the parties.

• The cost of the transaction.

MOST USED METHODS• Open account

• Direct transfer

• Cheque

• Bank instruments (subject to documents)

• Letter of credit

• Collection

• Bill of exchange

CONDITIONS OF THE LETTER OF CREDIT

• Confirmed

• Notified

• Pay the bearer at sight

SECURITYLETTER OF CREDIT

COLLECTION

BILL OF EXCHANGE

PAYMENT ENGAGEMENT

CHEQUE

TRANSFER

0 25 50 75 100

Security of payment Risk of unpayment