International support systems – International payment methods
We have already looked at advance payments and letters of credit but there are other payment methods that can also be used:
Payment methods
Open accounts
An open account is a way to extend credit to a buyer. The goods are shipped without the supplier receiving payment and the buyer then pays within a certain period (30, 60 or 90 days)
Customers like to be able to pay after receiving the goods
It can cause cash flow problems for the seller
Consignment
The seller owns the goods until they are sold by the distributor
The distributor or agent takes care of the goods so a high level of trust is required
International credit cards
Credit cards that can be used for different currencies
Credit cards such as Visa and Mastercard can be used worldwide
They are not accepted everywhere. There are fees.
International bank transfer
Transferring money from bank to bank
It is a safe way to pay
Sometimes a fee needs to be paid for doing this
Commercial payment systems
There is an extra level of protection e.g. 'touch ID' or facial recognition
The phone needs to be available and working in order to use mobile phone systems