There is a variety of forms of cashless payments. They are developing rapidly. The most common are settlements using a letter of credit.
It is necessary
Bank account
Instructions
Step 1
A letter of credit is essentially a guarantee of the safety and legality of any transaction. The seller instructs the bank to transfer a certain amount of funds to the account of another person after he has fulfilled his obligations. The fulfillment of the terms of the contract must be documented.
Step 2
The use of this form of settlement allows you to reduce the risk of non-payments and non-fulfillment of contractual obligations.
Step 3
There are different types of letters of credit. The most commonly used are revocable, irrevocable, verified, unconfirmed, and renewable. The payer cannot change the conditions of the first one without agreement with the payee. The second can be changed unilaterally. In the third case, the bank is fully responsible for payments. Revolving is renewed with regular deliveries of goods.
Step 4
The opening procedure is the same for all types. First, the seller and the buyer agree that the transaction will be settled by letter of credit. Then the payer applies to the credit organization with two copies of the application for its registration. To do this, he must have his own account (card or deposit).
Step 5
Secondly, the bank clarifies all the details of the transaction, from issues of transportation of products and ending with checking the correctness of all documents. A special account "Letters of credit" is opened in the name of the seller, and the owner is notified of this. The bank will transfer funds to this account from the account of its client.
Step 6
The payer carefully examines the documents and concludes whether he is satisfied with the conditions and whether he can fulfill them. If in doubt, he can ask the buyer to change certain wording. After agreement and approval of all points, the letter of credit is signed and sent to the payer.
Step 7
After fulfilling the obligations, the seller sends supporting documents to the bank. They are verified by the buyer and confirmed in writing. After that, the money is transferred to the recipient's account.
