FOREIGN PAYMENT

Foreign Payments are specialists in all areas of foreign exchange. Not only do we provide commission free currency and travellers cheques, we can also transfer funds overseas by bank transfer. Our currency and travellers cheque rates are better than the major high street banks and we charge no commission or delivery fee. We also offer tiered rates which means the larger the order, the better the rate. Foreign Payments offer Corporate Foreign Exchange Services to companies and organisations with regular overseas travel requirements. We can offer top rates, same/next day delivery, transfer and draft services and commission free currency for all your staff (for their personal travel needs).. If you work in the West End and City of London area, Foreign Payments can offer free next day delivery. Our very own couriers will deliver your order to your workplace at a time to suit you. We offer morning and afternoon delivery (10.00-12.00 & 14.0016.00). For clients needing to send funds overseas, Foreign Payments offer a Foreign Transfer Service. There is no commission on transfers over 5,000

Across all borders International business success relies on efficient, reliable and transparent processing of payments beyond bank and national borders. Whether you process your payment transactions with electronic banking software, via SWIFT (Society for Worldwide Interbank Financial Telecommunication) or using Commerzbank's Corporate Banking Portal, we have all the solutions you need and also ensure your compliance with German foreign trade reporting regulations to the German Bundesbank (AWV-Meldung). You also benefit from Commerzbank's international presence and our network of more than 5,000 correspondent banks. For a direct line to banks throughout the world, Commerzbank can also provide you with access to the SWIFT network. Our specialists will be happy to discuss whether this is advisable in your particular case and, if so, will help you to implement your "Corporate Access to SWIFT".

FOREIGN PAYMENT TRANSACTION

METHODS OF FOREIGN PAYMENT

A number of methods or instruments are used to faciliate foreign payments. Important among them are discussed below: 1. Bill of Exchange: The bill of exchange is a commonly used instrument in international payments. It is an order from the drawer (creditor) to the drawee (debtor) to pay the specified sum of money on demand or on some specified future date. The following example makes the mechanism of foreign payment through bill of exchange clear: Suppose trader in Bombay imports machinery from trader B in London. Similarly, another trader C in London imports tea from trader D in Bombay. 2. Bank Draft: Bank draft is an order of a bank to its branch or some other bank to pay the bearer the specified amount. The debtor (importer) in foreign transaction gets a bank draft from the bank and sends it to his creditor (exporter) who in turn, collects the specified amount from the bank in his own country.

3 Letter of Credit: A letter of credit is an assurance from the writer of the letter (a commercial bank) to the creditor on behalf of the debtor that the former will receive payment. In the international transaction, for example, an importer may arrange a letter of credit from his commercial bank according to which the exporter may draw bill on the bank rather than on the importer. The letter of credit provides an assurance to the exporter that the bill will be paid by the bank. Thus, the issuance of letter of credit gives double assurance of payment because the exporter can now rely on the standing and integrity of the bank rather than on the standing and integrity of the importer alone.
4. Cable Transfers: A cable transfer is a telegraphic order sent by a bank to its correspondent bank abroad to pay the specified amount to certain person from its deposit account. For example, an American importer who wants to make payment abroad can arrange for a cable transfer from his American bank. The American bank will direct its correspondent bank abroad to transfer the specified sum from

5. Other Instruments: Other means of foreign payments are: traveler's cheques, personal cheques, international money orders, home currency, gold, etc.