实用英语文函写作第二版课件 教学课件 ppt 作者 贾琰 程欣 主编U8.ppt

General Introduction  If you are working in international trade, you may need to be familiar with the different types of payment that exist. As you know, payment in international trade is complicated. After goods are sold, the seller will send an invoice or bill to the buyer for collection. The buyer can pay in different ways, such as payment by cash, check, postal money order, or by a bank transfer. The method of payment for each transaction is to be agreed upon between the two trading parties involved at the time of placing orders. However, remittance, collection, and letter of credit are the three basic modes of payment in international trade. The Modes of Payment in International Trade In international trade, remittance, collection, and letter of credit are the three basic modes of payment. Remittance When remittance is adopted in international trade, the buyer on his own initiative remits money to the seller through a bank according to the terms and time stipulated in the contract. The buyer can adopt three different ways of remittance when he sends the money. Mail Transfer (M/T) The buyer gives money to his local bank. The local bank issues a trust deed for payment, then sends it to a correspondent bank at the seller’s end by means of mail and entrusts him to put the money to the seller. Since the payment order is sent to paying bank by mail, M/T is cheap and slow. Telegraphic Transfer (T/T) At the request of the buyer, the local bank sends a trust deed for payment by cable directly to a correspondent bank at the seller’s end and entrusts him to pay money to the seller. This method is quicker than mail transfer. The seller can receive the money at an early date. But the buyer has to bear more expenses. Demand Draft (D/D) The buyer buys a bank draft from his local bank and sends it by mail to the seller. On the basis of the above bank draft, the seller or his appointed person takes the money from the relative bank in his place. Collection Collection is t