D-1- Payment techniques


Payment processing is one of the main preoccupations of companies with international transactions. Doing business is important, but compensation is essential. Esandis offers you free training space dedicated to international transactions, and all the skills you need to become an export or import manager. Our objective is to provide you an understanding of the importance of the payment component of an international transaction.

We can therefore split the payment of an international transaction into two co-dependant components: "the payment techniques" and "payment tools."

1-1- Payment techniques : characteristics and definition

Payment techniques incorporate the payment regulations, as previously noted, permitting companies to secure their international transactions. Payment techniques are solutions to pay your transaction. They involve both the importer and the exporter banks. Indeed, these two banks guarantee that the transactions are conducted in accordance with the companies' interests by returning documents in exchange of payment. Therefore, more so than a just a simple payment, the payment techniques provide maximum security to the companies that use them.

Indeed, a lot of companies use only tools of payment, even for international transaction which makes their transactions, of course, more risky. These companies use that kind of payment because it's not expensive, especially if they did not take all the aspects of the risk into consideration.

1-2- Payment techniques : A financing tool

One of the great advantages when company use payment techniques to pay international transactions, is that some of these techniques can be used as financing tools, and this, using the delay of payment as a bank credit.