INTERNATIONAL PAYMENT IN LOGISTICS 2025

International Payment in Logistics plays a crucial role in closing trade transactions and protecting the interests of both buyers and sellers. Understanding international payment systems and popular payment methods can help businesses – especially SMEs – avoid major financial risks.

International Payment in Logistics 2025 refers to the process of transferring financial value between different countries. This enables smooth business and financial transactions among companies, banks, and individuals worldwide.
These payments are usually made through commercial banks or international financial institutions, ensuring security and transparency.
Objectives of International Payment:
– Ensure exporters receive full payment after delivery.
– Ensure importers only pay when goods meet agreed conditions.
– Build trust and commercial credibility between international partners.
Role in the Supply Chain:
International payment is not just the final step of a deal; it also affects:
– The company’s cash flow and liquidity.
– The relationship between buyer and seller.
– The credit reputation with banks and global markets.

Before any transaction, both parties must agree on key international payment conditions:
Payment Currency
– Define the currency to be used and how to manage exchange rate fluctuations.
– Common currencies: USD, EUR, CNY, or VND.
Payment Timing
– Advance Payment: Importer pays before goods are shipped.
– Deferred Payment: Payment is made after goods are received within an agreed period.
– Immediate Payment: Importer pays as soon as goods are delivered or received.
Payment Location
Specify where the exporter will receive payment — in the importing country, exporting country, or a third country.
Payment Method
Select the most suitable and secure method agreed upon by both parties.

In 2025, there are four main international payment methods commonly used in logistics and export-import activities. Each has distinct advantages and disadvantages depending on trust levels and transaction size.

T/T (Telegraphic Transfer) is a direct payment method between importer and exporter via the international banking system (SWIFT).
Process:
1. The importer requests a bank transfer.
2. The importer’s bank transfers funds to the exporter’s bank.
3. The exporter receives payment and ships goods (depending on the agreement).
Pros:
– Fast, flexible, low-cost.
– Easy to execute via online banking.
Cons:
– High risk for the payer if goods haven’t been received.
– Requires high trust between both parties.
Best for small transactions or long-term partners.

L/C (Letter of Credit) is one of the most secure and popular methods for international payment in logistics. The bank acts as a guarantor, ensuring both sides are protected.
Process:
1. Importers open an L/C at their bank.
2. The bank sends the L/C to the exporter’s bank.
3. Exporters ship goods and submit compliant documents.
4. The bank releases payment upon verification.
Pros:
– Highly secure with bank guarantee.
– Protects both buyer and seller.
Cons:
– High opening costs.
– Complicated document procedures; minor errors can cause delays.
Best for high-value or new transactions.

Under this method, the exporter ships goods first, and the importer pays later based on a pre-agreed timeline (monthly, quarterly, etc.).
Pros:
– Simple and cost-effective.
– Encourages buyer convenience and market expansion.
Cons:
– High risk for exporters if buyers delay or default.
– No bank guarantee.
Best for trusted, long-term partners.

In this method, the exporter authorizes their bank to collect payment from the importer after shipment. There are two types: Clean Collection and Documentary Collection.
Pros:
– Lower cost than L/C.
– Safer than T/T or Open Account.
Cons:
– The bank acts only as an intermediary, not a guarantor.
– Risk if the importer refuses payment.
– Possible delays due to intermediary banks.
Best for medium-value transactions with moderate trust.

When selecting an international payment method in logistics, businesses should consider:
– The level of trust and relationship between partners.
– Contract value and transaction frequency.
– Company’s financial strength.
– Trade regulations of each country.
– Bank fees, document costs, and processing time.
Recommendations:
– For new partners → choose L/C for maximum security.
– For long-term partners → use T/T or Open Account to save costs.

In today’s expanding global trade landscape, understanding International Payment in Logistics 2025 and its key methods is essential for Vietnamese enterprises aiming for sustainable growth.
Choosing the right payment method helps:
– Reduce financial risks.
– Maintain healthy cash flow.
– Strengthen credibility with global partners.

For comprehensive logistics solutions and expert consultation, contact:
SAS LOGISTICS JSC
Tel: 028 38 48 8575
Website: https://saslogistics.vn
ZALO OA: https://zalo.me/227135675784858581?src=qr
Address: 5th Fl., 28 Truong Son Building, 28 Truong Son, Tan Son Hoa, Ho Chi Minh City, Vietnam.