What Is an International Money Order?
International drafts are referred to as drafts. It is a written proof that the exporter orders the importer and exporter to pay a certain amount at a specified time. Drafts can be spot drafts or regular drafts. A sight draft is a bill that the payer instructs the payer to pay immediately after seeing the bill. If the payer (that is, the importer) fails to pay the required amount immediately after seeing the ticket, it is a breach of contract and these breaches will be corrected by a letter of credit. A time draft is a bill that the payer pays after a period of time after seeing it. A money order can be a "credit" money order or a "documentary" money order. Credit drafts are not accompanied by various relevant documents; documentary drafts are accompanied by various relevant documents, and these documents are to be handed to the importer along with the draft. Credit drafts are usually used in non-trade situations where the drawer requires payment only. Most money orders are documentary money orders. [1]
International money order
Right!
- Chinese name
- International money order
- Also known as
- Foreign currency bill
- Features
- Bill of Exchange Issuance and Payments Occurred Abroad
- Application
- Use a foreign money order as a payment method
- International drafts are referred to as drafts. It is a written proof that the exporter orders the importer and exporter to pay a certain amount at a specified time. Drafts can be spot drafts or regular drafts. A sight draft is a bill that the payer instructs the payer to pay immediately after seeing the bill. If the payer (that is, the importer) fails to pay the required amount immediately after seeing the ticket, it is a breach of contract and these breaches will be corrected by a letter of credit. A time draft is a bill that the payer pays after a period of time after seeing it. A money order can be a "credit" money order or a "documentary" money order. Credit drafts are not accompanied by various relevant documents; documentary drafts are accompanied by various relevant documents, and these documents are to be handed to the importer along with the draft. Credit drafts are usually used in non-trade situations where the drawer requires payment only. Most money orders are documentary money orders. [1]
- Application of International Money Order
- In trade, foreign bills of exchange are generally used as payment methods. The buyer will not get the goods without payment. On the other hand, if the seller does not send the goods (whether it is carried by ship or by air), he will not receive cash. International bills of exchange connect shipping and payment, so that both buyers and sellers are protected. It is a convenient and trustworthy method, and everyone is happy to use it. The delivery is handled by the airline or shipping company, the payment is handled by the bank, and international bills of exchange have the function of connecting the two aspects.
- International bills of exchange are used in the form of letter of credit (L / C; letter of credit) to guarantee payment; there are also forms of letter of credit that are not used, such as D / P; Documents against payment Only after receiving the shipping documents; the other is D / A; Documents against acceptance, as long as the buyer accepts the bill of exchange, he can get the shipping documents. Obviously, the latter conditions are more favorable to the buyer.
- Regarding the check date, there are differences between payment upon sight (AS = at sight; OD = on demand), and payment within 30 days after sight (at 30d / s = at 30 days after sight).