With so many foreign trade payment methods, which one is the most suitable?

Payment and collection accounts are different:

1. Company account: T/T, L/C, D/P, D/A and D/A..

2. private accounts: western union, Paypal, MoneyPay, t/t.

telegraphic transfer

T/T (Telegraphic Transfer) Telegraphic transfer refers to the remittance method in which the remitter sends a charge telegram, telex or SWIFT to the branches or correspondent banks in other countries at the request of the remitter, instructing the remitter to pay a certain amount.

T/T payment is settled in foreign exchange cash, and your customer will remit the money to the foreign exchange bank account designated by your company. T/T belongs to commercial credit. After the goods are ready, if the customer pays the full amount, you can send the documents directly to the customer without going through the bank.

There are two types of telegraphic transfer, one is called pre-TT (pre-T/T).

In the international trade industry, the shipper pays 100% of the payment before delivery, which is called pre-T/T/t. This payment method is the safest trade method in international trade. Compared with the seller, because the seller does not need to bear any risks, he will deliver the goods as long as he receives the money, and will not deliver the goods if he does not receive the money.

Second: payment method after TT (postal telegraphic transfer).

Post-TT (post-T/T) payment method is defined in the industry as the buyer pays off the balance after the goods are delivered. Then what is the basis for the buyer to pay the balance? Generally speaking, after TT (after telegraphic transfer), the balance is paid according to the copy of the bill of lading.

letter of credit (L/C)

Letter of credit (L/C) refers to the written document that the bank (issuing bank) pays the third party (beneficiary) or its designated party according to the requirements and instructions (of the applicant) or on its own initiative under the conditions of meeting the terms of the letter of credit. That is, a letter of credit is a written document issued by a bank that promises conditional payment.

In international trade activities, buyers and sellers may distrust each other, and after the buyer is worried about the advance payment, the seller will not deliver the goods according to the contract requirements; The seller is also worried that the buyer will not pay after delivery or submission of shipping documents. Therefore, two banks are needed as guarantors of buyers and sellers, and commercial credit is replaced by bank credit (bank credit is higher than commercial credit). The instrument used by banks in this activity is the letter of credit.

It can be seen that letter of credit is a certificate that banks can guarantee payment conditionally, and it has become a commonly used settlement method in international trade activities.

According to the general provisions of this settlement method, the buyer will first deposit the payment in the bank, and the bank will open a letter of credit, and the bank in another place will inform the seller that the seller will deliver the goods according to the terms stipulated in the contract and the letter of credit, and the bank will pay for the buyer.

Documents against payment

D/P means that the collecting bank can only hand over the commercial (freight) documents to the importer after the importer has paid for the goods.

D/P at sight means that the exporter draws a draft at sight, and the collecting bank reminds the importer that the importer must pay after seeing the bill. After payment, the importer gets the shipping documents.

D/P after sight or date refers to the time draft drawn by the exporter and presented to the importer by the collecting bank. After being accepted by the importer, the importer pays the redemption bill on or before the maturity date of the bill.

Number (word)-module

D/A means that the exporter's presentation is conditional on the importer's acceptance of the draft. That is, the exporter issues a time draft after the goods are shipped, together with commercial documents, and presents it to the importer through the bank.

After the importer accepts the draft, the collecting bank will hand over the commercial documents to the importer; The payment obligation will not be fulfilled until the bill of exchange expires. Because D/A is the importer's acceptance of the draft before obtaining the commercial documents, so as to pick up the goods. Therefore, D/A is only applicable to the collection of time draft.

D/A is a common payment method in international trade. The exporter instructs the collecting bank through the collecting bank to issue ownership and other shipping documents to the importer after the importer accepts the draft. Exporters will face the risk that importers will not pay on time.

The so-called "acceptance" refers to the payer's (importer's) approval of the draft when the collecting bank presents it. The procedure of acceptance is that the payer signs the bill, indicating the word "acceptance" and the date, and returns the bill to the holder. No matter how many times the bill is transferred, the drawee should pay by the bill on the maturity date.

O/A

O/A (open account) bookkeeping, which can also be said to be credit sales, is generally called bookkeeping. It means that the seller sends the goods to the buyer under the condition that the buyer promises to pay the payment in one quarter, half a year or one year (usually 90 days or 180 days). It is one of the most important settlement methods in international trade.

Under the O/A settlement mode, some banks can provide financing for traders, pay the factory payment and let the insurance company guarantee, but this does not mean that O/A is completely reliable, because once the importer goes bankrupt or fails to pay or delays payment for other reasons, the insurance company cannot pay 100%. In addition, the insurance company's claims process will be very long, requiring a lot of manpower and time. Moreover, the financing provided by the bank has recourse. If the customer's payment is not received or not received in time, the bank has the right to recover all the payment or the difference between the insurance company's payment and the payment.

Western Union

Western Union, referred to as Western Union for short, is the world's leading express remittance company with a history of 150 years. It has the largest and most advanced electronic remittance financial network in the world, with agent outlets in nearly 200 countries and regions around the world.

Western Union is a subsidiary of First Data Corporation (FDC), one of the Fortune 500 companies in the United States. China Everbright Bank, China Postal Savings Bank, China Construction Bank, Zhejiang Chouzhou Commercial Bank, Jilin Bank, Harbin Bank, Fujian Strait Bank, Yantai Bank, Longjiang Bank, Wenzhou Bank, Shang Hui Bank and Shanghai Pudong Development Bank are all partners of Western Union in China.

For small private remittances, Western Union is the first choice. Just tell the customer your name and nationality, and the customer can pay. Remember the order of last name and first name:

Christian name is a name from China, which is also the first name.

China's surname is surname. Tell customers not to write backwards.

After the customer pays the fee, there will be a payment voucher, which is often called a water bill. There is an important message on it, the MTCN number, called the monitoring number. With this number, you can collect foreign exchange at the above-mentioned bank counter or online.

The handling fee for Western Union remittance is paid by the payer. So the cost of foreign exchange collection is zero.

Paypal

PayPal(PayPal Holdings, Inc, PayPal's brand in Chinese mainland) is a wholly-owned subsidiary of Yi Bei Company. 1998 12 was founded by peter thiel and Max Levchin and headquartered in San Jose, California, USA.

The traditional method of transferring funds between users who use e-mail to identify themselves and avoiding mailing checks or remittances. PayPal also cooperates with some e-commerce websites to become one of their payment methods; However, when transferring money through this payment method, PayPal charges a certain handling fee.