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Banking. Basic forms of international payments (lecture notes)

Lecture notes, cheat sheets

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Main forms of international payments

The main forms of international settlements used by banks when conducting foreign trade operations by their clients include collection and letters of credit. With such forms of payment, the importer makes a payment, and the exporter receives the currency, provided that the goods are shipped in accordance with the terms of the concluded contract. A letter of credit and collection can be a form of payment for the sale of goods both for cash and on credit. Forms of collection and letters of credit are different (simple collection, documentary collection, revocable letter of credit, irrevocable letter of credit, which in turn are revocable and irrevocable, and irrevocable - confirmed and non-confirmed, etc.) and each of them is reflected in the applicable practice of international settlements . Letters of credit payments are governed by the Uniform Rules for Letters of Credit issued by the International Chamber of Commerce in 1993 (version No. 500), and for collection by the Uniform Rules for Collection issued in 1995 (No. 522).

In the foreign trade practice of the Russian Federation, such forms of payment as bank transfer, check, open account are used less frequently and are used more often for transactions of a non-commercial nature.

Author: Shevchuk D.A.

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