Content reviewed: 20.10.2026
Payment Methods
International trade payment methods are selected by considering the parties' relationship, documentation, payment timing and bank conditions together. Payment methods and delivery terms are separate matters.
Main payment methods
| Method | How it works |
|---|---|
| Advance payment | Payment is made before shipment. |
| Open account | Payment is made at the agreed time after the goods are shipped or delivered. |
| Documentary collection | Commercial documents are delivered to the buyer through banks under the agreed collection terms. |
| Documentary credit | The bank fulfils its undertaking upon presentation of documents complying with the credit terms. |
Document compliance under documentary credits
Documentary credits subject to UCP 600 are irrevocable. Applicable rules, expiry, place of presentation and document requirements should be clarified with the bank. Older descriptions of unilaterally cancellable credits should not be relied on within this framework.
Planning checklist
- Check the payment date and currency against the sales contract.
- Keep information consistent across invoices, packing lists and transport documents.
- Clarify bank charges and presentation deadlines in advance.
- Confirm customs declarations and payment details with your customs broker.
How it relates to storage planning
Document preparation and release schedules may affect storage duration. Plan operational dates with the parties responsible for payment and customs procedures.
Sources and official resources
This page provides general information. Confirm the conditions applicable to your operation with official sources, your customs broker and your bank where necessary.
Contact us about your operation
Share your product and shipment details so we can discuss a plan tailored to your needs.
Get in touch ↗