Accepting Global Payments
I have just started the seventh module of the International Credit & Risk Management (ICRM) course, which focuses on the fundamentals of global payment mechanisms. And boy, there are so many factors to consider accepting international payments!
Not only am I learning about various payment methods used in international payments, but elements of a payment agreement, the purpose of a bank payment obligation (BPO), requirements of a negotiable instrument and types of EFT transactions. I'm also learning about bank drafts, including the parties to a draft and the difference between types of drafts.
One of the things I found to be most interesting was the Bank Payment Obligation (BPO), where a bank must pay subject to the electronic presentation of compliant data. It offers assurance of payment, risk mitigation for all parties and possible use as collateral for finance. If I were a creditor working in international trade credit, I would use BPO as frequently as possible.
Until next time,
Jamilex Gotay, editorial associate