Trade Finance Forum › Forums › Trade Finance › Basics › What is the most reliable method of payment in international trade? › Reply To: What is the most reliable method of payment in international trade?
The five basic payment methods are:
4.Cash in Advance
5.Letter of Credit (LC)
Out of the five, cash in advance is considered the safest payment method for international trade. Cash in advance eliminates the risk of non-payment and credits as the seller is paid the total amount beforehand. Bank wire transfers or credit card payments are the frequently used payment modes when using the cash-in-advance option.