International payment

International payment

Coordinating and choosing the payment method agreed by the parties and implementing it is one of the basic steps of business, and the important point in this section is the sequence of money and goods transfer, in other words, does the buyer transfer the money first or does the seller transfer the goods? According to the embargo conditions of Iranian banks, foreign sellers mostly agree with Iranian merchants in the form of full payment before shipping the goods.

Choose letter of credit

A letter of credit is an obligation given by the buyer’s bank to the seller’s bank. In international trade, when a buyer from one country and a seller from another country make a transaction, a letter of credit becomes very important.

Choosing the type of payment: In the discussion of the exchange of goods with its money, the parties involved in the commercial process always seek to use the best and safest method. Choosing the best method for exchanging money with goods in international trade due to the problems and entanglements of money transfer. and goods become doubly important. Factors such as the distance between countries and diplomatic and political relations between countries, topics related to transportation, the difference in currency units and consequently the conversion of currency units and exchange rate fluctuations and the use of channels Money transfer has caused exporters and importers to pay more attention to this issue.

From a scientific point of view, payment methods are divided into the following four general categories according to the roles of the parties:
Bank transfers and money orders
Payment by bank checks
Collection of documents