As international trade over the Internet increases, Internet-related fraud is also becoming more common. At CN-POP, we are doing our utmost to minimize the financial losses sustained in such cases. For small order or first order,we accept payment as T/T usually.L/C is considerable sometimes,to minimize the potential for fraud,we only accept the L/C which is issued by famous bank,with the applicant has good credit there.
instruction of T/T & L/C:
T/T is the easiest payment from and is typically used when samples or small quantity shipments are transported by air.
T/T is also used between buyers and sellers who have already established a mutual trust, as this negates the risks associated with this, the fastest and cheapest form of payment.
Documents like air waybills, commercial invoices and packing lists will be sent to you along with the shipment in the same aircraft.
As soon as the shipment arrives, you, with documentation, can clear the customs and pick up the goods. Shipping happens only after money is safely in seller's bank account.
It usually takes 3-4 days for such a wire transfer anywhere in the world.
A Letter of Credit is the preferred payment method. However, there is some possibility of fraud due to incorrect or forged shipping documents.
The L/C is a guarantee, given by the buyer's bank, that they will pay for the goods exported, provided that the exporter can provide a given set of documents in accordance with clauses specified in the L/C and in a timely manner.
The technical term for letter of credit is "Documentary Credit."
Letters of credit deal in documents, not goods. Thus, the process works both in favor of both the buyer and the seller.
Simply put, a letter of credit is a letter written by the importer's bank to the exporter. It verifies that the payment will be guaranteed when the bank is presented with concrete documents (bills of lading and freight documents).
Most letters of credit are "irrevocable" once the importer has had them sent, which means it cannot be changed unless both the buyer and seller agree.
