What are International Payments?

The types of international payments are typically cash or credit. Here are 3 types of international payments:

• Prepayments or cash in advance – The buyer makes international B2B payments in full using wire transfers or bank drafts before goods are shipped or delivered.
• Letters of credit – The buyer’s bank guarantees to the seller that payment will be made as long as specified conditions are met, usually after the seller delivers goods or services.
• Buy now pay later – The seller extends credit to the buyer and payment is deferred.
• Net Terms – Large merchant sellers may allow deferred payment from buyers. For example,  the term “Net 60” means payment is due 60 days from the date of the invoice.