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.

Wire transfer can be divided into two types, one is called pre-TT (pre-T/T), and what is pre-TT (pre-T/T)? In the international trade industry, that is to say, before the shipper delivers the goods, it pays 100% of the payment, 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. Pre-TT (pre-T/T) can also be divided into many flexible ways, such as paying 20%~40% deposit first and 80%~60% before delivery. The specific proportion can be flexibly grasped according to different situations. 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. Post TT (post-T/T) mode is also more flexible. Generally speaking, the post-TT (post-T/T) payment method is popular in the world. The guest pays 30% deposit first, and the other 70% is paid by the copy of the bill of lading (BL, B/L). Of course, there is a deposit of 40%, and 60% is shown in the bill of lading.

Frequently asked questions about telegraphic transfer payment

1. Incorrect payee information leads to account loss. Many customers are careless and will write the payee's name wrong, such as typos, for example, the name is too long when remittance, and the filling space is limited. The remittance did reach the payee's account, but because the information was incorrect, there was no way to lend money. Processing result: On June 5438+05 (or according to the actual situation of each bank), if the general situation is not resolved, it will be returned in the original way. Solution, 1. Inform the customer to modify the information, and clearly tell the customer that we can't collect the money and the order can't be executed without modification. 2. If the company name is too long after the second cooperation, you can tell the customer to write down the name in the address bar, or you can collect the money smoothly.

2. After T/T customers defaulted on the final payment, some customers just dragged their feet and delayed payment. First of all, when signing the contract, clearly indicate the payment time of the final payment, such as paying the bill of lading within 3-5 working days to avoid the situation that the final payment cannot be recovered. Of course, to avoid this situation, it is necessary to analyze and study customers, and it is best to avoid risks beforehand.

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.

Three obvious characteristics of letter of credit

First of all, the letter of credit is a self-sufficient tool. The letter of credit is not attached to the sales contract, and the bank emphasizes the written authentication of the separation of the letter of credit and the basic trade when examining the documents;

Second, the letter of credit is a pure documentary transaction. A letter of credit is to pay cash against documents and is not restricted by goods. As long as the documents are consistent, the issuing bank should pay unconditionally; (Coincidence only, coincidence of documents)

Third, the issuing bank bears the main responsibility for payment. Letter of credit is a kind of bank credit, it is a kind of guarantee document of the bank, and the issuing bank is mainly responsible for payment.

Classification of letters of credit

There are many kinds of letters of credit, which can be roughly divided into the following categories:

A according to the documents of the letter of credit or the requirements of the letter of credit itself:

(1) It is divided into:

Documentary and clean letters of credit

(1) Documentary letter of credit is a letter of credit paid by documentary draft or only by documents. Documents here refer to documents representing the ownership of goods (such as ocean bills of lading, etc.) ), or documents proving that the goods have been delivered (such as railway waybill, air waybill, postal parcel receipt). Practice of UCP600 documentary letter of credit

(2) A clean letter of credit is a letter of credit that pays by clean bill without shipping documents. Banks pay by clean letter of credit, and may also require beneficiaries to attach some non-freight documents, such as invoices and advance orders.

In the payment and settlement of international trade, most of them use documentary letters of credit.

(2) According to the responsibility of the issuing bank, it can be divided into: ① Irrevocable letter of credit .. Once the letter of credit is issued, the issuing bank cannot unilaterally modify or cancel it without the consent of the beneficiary and the relevant parties within the validity period. As long as the documents provided by the beneficiary meet the requirements of the letter of credit, the issuing bank must fulfill its payment obligations. (2) Revocable letter of credit, the issuing bank has the right to cancel the letter of credit at any time without the consent of the beneficiary or the parties concerned, and should indicate the word "revocable" on the letter of credit. However, UCP500 stipulates that as long as the beneficiary has obtained the guarantee of negotiation, acceptance or deferred payment according to the terms of the letter of credit, the letter of credit cannot be revoked or amended. It also stipulates that if the letter of credit does not indicate whether it can be revoked, it is regarded as an irrevocable letter of credit.

The latest UCP600 stipulates that banks cannot open revocable letters of credit! (Note: Irrevocable letter of credit is usually used)

(3) According to whether there is another bank to guarantee payment, it can be divided into: ① Confirmed letter of credit, which refers to the letter of credit issued by the issuing bank, and another bank guarantees the payment obligation for the documents that meet the terms of the letter of credit. A bank that confirms a letter of credit is called a confirming bank.

② Unconfirmed letter of credit (unconfirmed letter of credit). The letter of credit issued by the issuing bank has not been confirmed by another bank.

(4) According to the different payment time, it can be divided into ① sight letter of credit, which refers to the letter of credit in which the issuing bank or the paying bank immediately performs the payment obligation after receiving the documentary draft or shipping documents that meet the terms of the letter of credit. A usance letter of credit refers to a letter of credit in which the issuing bank or the paying bank performs the payment obligation within the prescribed time limit when receiving the documents of the letter of credit.

③ False usance letter of credit payable at sight. The letter of credit stipulates that the beneficiary draws a time draft, which will be discounted by the paying bank, and all interest and expenses will be borne by the issuer. For the beneficiary, this letter of credit is actually payable at sight, and there is a clause of "usance letter of credit payable at sight" in it.

(5) According to whether the beneficiary's right to the letter of credit can be transferred, it can be divided into: ① Transferable letter of credit ... refers to the bank that the beneficiary of the letter of credit (the first beneficiary) can ask for authorization to pay, undertake the responsibility of deferred payment, accept or negotiate (collectively referred to as "transferring bank"), or when the letter of credit is freely negotiated, it can ask the transferring bank specially authorized in the letter of credit to transfer the letter of credit to one or more beneficiaries (the second beneficiary). The issuing bank should clearly indicate "transferable" in the letter of credit, and it can only be transferred once.

② Non-negotiable letter of credit. The beneficiary cannot transfer the right of the letter of credit to another person's letter of credit. Where the letter of credit does not indicate "negotiable", it is a non-negotiable letter of credit.

(6) Letter of credit with red clause. This letter of credit allows the issuing bank to advance some money to the seller after receiving the documents. This kind of letter of credit is often used in manufacturing.

According to the purpose of the letter of credit.

(1) revolving letter of credit

It means that after all or part of the letter of credit is used, its amount is restored to the original amount and can be used again until it reaches the specified number of times or the specified total amount. Usually used in the case of batch unified delivery. In the case of transferring the letter of credit according to the amount, the specific methods to restore the original amount are as follows: ① Automatic transfer. When a certain amount is used up in each period, it can be automatically restored to the original amount without waiting for the notice from the issuing bank. ② Non-automatic circulation. After a certain amount is used up in each period, the letter of credit can only be restored to the original amount after waiting for the notice from the issuing bank to arrive. ③ Semi-automatic circulation. That is, within a few days after a certain amount is used up each time, the issuing bank will automatically restore the original amount from the first day without issuing a notice to stop recycling.

(2) Reciprocal letter of credit.

Refers to two letters of credit opened by the applicant in favor of the other party. Two letters of credit are equal or approximately equal in amount and can be opened simultaneously or successively. Mostly used in barter trade or processing compensation trade.

(3) back-to-back letter of credit.

Also known as the letter of credit, it means that the beneficiary requires the advising bank or other banks of the original letter of credit to open a new letter of credit with similar contents on the basis of the original letter of credit, and the issuing bank of the letter of credit can only open it according to the irrevocable letter of credit. Back-to-back letters of credit are usually opened through a third party when middlemen resell other people's goods, or when the two countries cannot directly handle import and export trade. The amount (unit price) of the original letter of credit should be higher than that of the counter-letter of credit, and the shipment date of the counter-letter of credit should be earlier than the shipment date stipulated in the original letter of credit.

(4) Prepayment letter of credit/packing letter of credit.

It means that the issuing bank authorizes the paying bank (advising bank) to prepay all or part of the amount of the letter of credit to the beneficiary, and the issuing bank guarantees the repayment and bears the interest, that is, the issuing bank pays first and the beneficiary delivers the documents last, which is contrary to the forward letter of credit. The advance L/C is paid by the exporter's clean bill, and the beneficiary is also required to attach instructions to supplement the documents stipulated in the L/C. When the shipping documents are delivered, the paying bank will deduct the interest of the advance payment when paying the remaining amount.

(5) Standby letter of credit

Also known as commercial paper letter of credit and guarantee letter of credit. Refers to the certificate that the issuing bank undertakes the obligation to the promise issued by the beneficiary at the request of the applicant. That is, the issuing bank guarantees that when the applicant fails to fulfill his obligations, the beneficiary can get payment from the issuing bank only by presenting the provisions of the standby letter of credit and the issuing bank's default certificate. It is a kind of bank credit and a way for the beneficiary to get compensation when the issuer defaults.

Interpretation of common terms in letters of credit

Issuer: a person who applies to a bank to open a letter of credit, also known as an issuer in a letter of credit. Obligation: to open a letter of credit according to the contract; Pay a certain percentage of deposit to the bank; Timely payment of redemption orders. Right: View and return the redemption order; Inspection and return (all based on letter of credit)

Note: the application for opening an L/C consists of two parts, namely, the application for opening an L/C by the issuing bank and the statement and guarantee to the issuing bank (stating that the ownership of the goods belongs to the bank before the bill is paid; The issuing bank and its correspondent bank are only responsible for whether the documents are qualified on the surface; The issuing bank is not responsible for errors in document delivery; Force majeure is not responsible; Guaranteed payment redemption instruction; Guarantee to pay all expenses; The issuing bank has the right to add margin at any time; Have the right to decide on agent cargo insurance and improve the insurance level, and the expenses shall be borne by the insured.

Beneficiary: refers to the person named in the letter of credit who has the right to use the letter of credit, that is, the exporter or actual supplier. Obligation: After receiving the letter of credit, it should be checked with the contract in time. If not, the issuing bank shall be required to amend or refuse to accept the letter of credit as soon as possible or the applicant shall be required to instruct the issuing bank to amend the letter of credit; If accepted, deliver the goods and notify the consignee, prepare the documents and submit them to the negotiating bank for negotiation within the specified time; Be responsible for the correctness of the document. If there is any discrepancy, the issuing bank should change the documents and still deliver the documents within the time limit stipulated in the letter of credit.

Right: If it is rejected or modified, it is still inconsistent, and it has the right to unilaterally cancel the contract and reject the letter of credit after notifying the other party; After presenting the documents, if the issuing bank suspends business or refuses to pay without reason, it can directly ask the applicant to pay; Before the collection, if the applicant goes bankrupt, he can stop the delivery and handle it by himself; If the letter of credit has not been used when the issuing bank closes, the applicant may need to open another letter of credit. ..

Issuing bank: refers to the bank that accepts the letter of credit entrusted by the applicant and undertakes the responsibility of ensuring payment. Obligation: Open the letter of credit correctly and in time; Take the main responsibility for payment. Rights: charge handling fee and deposit; Reject documents that are inconsistent with the beneficiary or the negotiating bank; After payment, if the applicant is unable to pay the bill, he can handle the bill and goods; If the goods are insufficient, the balance can be recovered from the applicant.

Advising bank: refers to the bank entrusted by the issuing bank to forward the letter of credit to the exporter. Only prove the authenticity of the letter of credit, and do not undertake other obligations. It is the bank where the export place is located. Need to prove the authenticity of the letter of credit; Redistribution is only responsible for forwarding.

Negotiating bank: refers to the bank that is willing to buy the documentary draft handed over by the beneficiary. According to the payment guarantee of the issuing bank of the letter of credit and the request of the beneficiary, the bank that advances or discounts the documentary draft delivered by the beneficiary according to the provisions of the letter of credit and claims from the paying bank stipulated in the letter of credit (also known as the ticket purchasing bank, the negotiating bank and the discount bank; Generally, it is the advising bank; Limited consultation and free consultation). Obligation: Strictly review documents; Prepaid or discount documentary bills; Endorsed letter of credit; Rights: transferable or non-transferable; Documents can be processed after negotiation; After negotiation, the issuing bank closes or refuses to pay on the pretext that it can recover the advance payment from the beneficiary.

Paying bank: refers to the paying bank specified in the letter of credit. In most cases, the paying bank is the issuing bank. The bank (which can be the issuing bank or other banks entrusted by it) that pays the beneficiary the documents conforming to the letter of credit. Have the right to pay or not to pay; Once the payment is made, there is no right to recourse against the beneficiary or the holder.

Confirming bank: a bank entrusted by the issuing bank to guarantee the letter of credit in its own name. Add "guaranteed payment"; An irrevocable and firm commitment; Independently responsible for letters of credit and cash documents; After payment, you can only claim from the issuing bank; If the issuing bank refuses to pay or goes bankrupt, it has no right to recourse against the beneficiary and the negotiating bank.

Accepting bank: refers to the bank that accepts the draft submitted by the beneficiary and is also the paying bank.

Reimbursement bank: refers to the bank (also known as clearing bank) entrusted by the issuing bank in the letter of credit to pay off the advance payment to the negotiating bank or the paying bank on behalf of the issuing bank. Pay only and don't review documents; Regardless of the refund, just pay; If not, the issuing bank will pay.

Handling of letters of credit

(1) The applicant for opening the L/C shall fill in the application for opening the L/C, pay the deposit or provide other guarantees as stipulated in the contract, and ask the issuing bank to open the L/C. ..

(2) The issuing bank shall issue a letter of credit to the beneficiary according to the contents of the application and send it to the advising bank where the exporter is located.

(3) The advising bank shall deliver the letter of credit to the beneficiary after verifying that the seal is correct.

(4) After the beneficiary checks that the contents of the letter of credit are in conformity with the contract, he will ship the goods, prepare the documents and draw the draft according to the provisions of the letter of credit, and send it to the negotiating bank for negotiation within the validity period of the letter of credit.

(5) After examining the documents according to the terms of the letter of credit, the negotiating bank will advance the money to the beneficiary.

(6) The negotiating bank sends the draft and shipping documents to the issuing bank or its specific paying bank for claim.

(7) The issuing bank shall pay the negotiating bank after reviewing the documents.

(8) The issuing bank notifies the issuer to pay the redemption instruction.

Common countries where a letter of credit must pay a large sum of money: Bangladesh, Ethiopia, Algeria, Uzbekistan, etc.

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.

Existing risks

In D/P business, banks do not review the contents of documents, and they do not undertake payment obligations. Banks only provide services such as forwarding documents, handing in documents and collecting payment. In the D/P export business, exporters should pay attention to the following important issues:

At 1. In D/P business, the exporter's guarantee of payment is the importer's credit, so paying attention to the importer's payment ability and business reputation is an important prerequisite for obtaining payment.

2. After the goods are delivered, during the circulation of documents from the exporter to the importer, attention should be paid to controlling the goods through the control of documents, and the documents should be firmly controlled before the importer pays.

3. In practice, problems often occur in the transfer of documents, that is, the exporter to the bank, the seller's bank to the buyer's bank, and the buyer's bank to the importer. Therefore, to control these handover points well, the documents should be circulated according to the specifications.

4. Try to instruct the bill of lading. This can control the goods by controlling the bill of lading.

D/P Risk Although in both cases, the importing bank can only deliver the documents to the importer after the importer pays, so the legal risks in these two cases should be said to be the same. However, due to the different risks in business practice, it is more risky for exporters to present payment directly to the bank designated by the buyer. According to the Uniform Rules for Collection of the International Chamber of Commerce, the normal collection practice is that the export company entrusts its agent bank to handle the collection, and the collecting bank and the collecting bank entrusts the importer's agent bank or the bank designated by the importer to handle the presentation payment. However, in the collection business, the collecting bank has no obligation to accept the entrustment of the exporter. In other words, the bank has the right to refuse to handle the collection instruction after receiving it. The exporter handles the collection through its agent bank (collecting bank), and the collecting bank arranges the collecting bank (whether designated by the importer or not, whether it is the importer's agent bank) to handle the presentation and collection on its behalf. The collecting bank bears the risks to the exporter in the process of mailing the collection documents. Moreover, if there are any problems in the process of presenting payment, the collecting bank will make full and effective contact with the collecting bank.

Number (word)-module

D/A means that the exporter's presentation is conditional on the importer's acceptance of the draft. That is to say, the exporter issues a time draft together with commercial documents after the goods are shipped, 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, and the payment obligation will not be fulfilled until the draft 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.

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, MTCN number, called monitoring number. With this number, you can collect foreign exchange at the above-mentioned bank counter or online. Here, Shanghai Pudong Development Bank is recommended first, and downloading the APP on the mobile phone can be completed in one minute.

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.

Payment process

When the payer wants to pay a sum of money to the merchant or payee through PayPal, it can be divided into the following steps:

1. As long as there is an email address, the payer can log in and open a PayPal account, become its user through authentication, and provide credit card or related bank information to increase the account amount, and transfer a certain amount from the account registered at the time of opening the account (such as credit card) to the PayPal account.

2. When the payer starts the payment procedure with a third party, he must first enter the PayPal account, specify the specific remittance amount, and provide PayPal with the payee's email account number.

3. Then, PayPal sends an email to the merchant or payee to inform them that there are funds waiting to be collected or transferred.

4. If the merchant or payee is also a PayPal user, the money designated by the payer will be transferred to the payee after they decide to accept it.

5. If the merchant or the payee doesn't have a PayPal account, the payee can instruct the connecting station to enter the webpage to register and obtain a PayPal account according to the contents of the PayPal mail, and the payee can choose to convert the obtained money into a check and send it to the designated place, transfer it to his personal credit card account or transfer it to another bank account. As can be seen from the above process, if the payee is already a PayPal user, the money will be remitted to his PayPal account. If the payee does not have a PayPal account, the website will send a notification email to instruct the payee to register a new account on the PayPal website. PayPal is the handling fee paid by the payee, which consists of a certain percentage and a service fee. For details, please consult a special PayPal provider. The disadvantage is that if the customer pays by credit card, Paypal can still recover the money from you even if you receive it. Paypal has a high handling fee and can be arranged flexibly according to the actual situation of companies and individuals.

Money

Moneygram is a global fast remittance service between individuals, which can complete the remittance process from the sender to the payee within ten minutes, and has the characteristics of quickness and convenience. MoneyMoney is a remittance agency similar to Western Union.

The remitter does not need to choose a complicated remittance path, and the payee can transfer money without opening a bank account first. If US dollars are remitted to withdraw RMB, this business is foreign exchange settlement business. Whether domestic or overseas individuals settle down, each person can settle down with the equivalent of $50,000 (inclusive) per year with his/her valid identity document. That is, there is no longer a limit on the amount of single foreign exchange settlement, as long as it does not exceed the equivalent of 50 thousand dollars in the current year. So when your customer tells you that he sent you a bill, you just need to ask your customer for it.

(1) Reference number (remittance password) is eight digits.

(2) Name of the remitter (remitter's name)

(3) the remitter's surname (remitter's surname)

Then go to the local branch of the local cooperative bank, where there is a special money counter. They will give you a reminder, fill in the relevant information about the customer and yourself, and bring your own ID card to withdraw money.