Letters of Credit. Methods of Payment (Course, Master)

EENI Business School & HA University


Syllabus of the Online Course (Subject): International Payment Methods. Letters of Credit. Documentary credits UCP 600.

  1. Introduction to International Payment Methods
  2. Countries and payment terms
  3. Bills of Exchange
  4. Bank Draft
  5. Bank Transfer
  6. Clean collection
  7. Documentary Collections
  8. Letters of Credit (L/C)
    1. Types and modalities
    2. Terminology
    3. Opening a letter of credit
    4. Availability
    5. Contents of the letter of credit
    6. Documents
    7. UCP 600
  9. Electronic L/C (e-UCP)
  10. Analysis of Documentary Credits
  11. Import letters of credit
The eLearning Course (Subject) “Methods of payment / Letters of Credit” is part of the following Online Higher Education Programs taught by EENI Business School & HA University:
  1. Payment Methods Course
  2. Masters: International Business, Foreign Trade and Marketing
  3. Doctorate in International Trade
  4. Diploma in International Trade
  5. Bachelor in International Trade

African Student, Master International Business

Learning materials in Master in International Business in English or Study, Master in International Business in French Crédits Documentaires Study Master Doctorate Business in Spanish Créditos documentarios Masters Foreign Trade in Portuguese Crédito Documentário ar

Credits of the Online Course / Subject “Methods of payment/Letters of Credit”: 4 ECTS.

Area of Knowledge: Foreign trade.

The course (subject) “Methods of payment/Letters of Credit” aims at:

  1. Analysing various methods of payment used in international trade and outlining their differences, advantages, and disadvantages both for the importer and exporter
  2. Understanding what documentary collections are and how they work. Export and import collections will be analysed
  3. Understanding the following:
    1. Importance of Documentary credits and letter of credit in international trade
    2. How Documentary Credit works
    3. The obligations of the parties involved
    4. To understand how import documentary credits operate

In this course:

  1. We will examine how to receive and effect payment for international contracts of sale
  2. The student will become familiar with the parties, obligations, and key terminology used in documentary credit operations
  3. As well as, the student learns about the key checklists to take into account when preparing documents for presentation under documentary credit.

The focus will be on export methods of payment. The information presented here is also applicable to import transactions.

The selection of the most suitable method of payment is a key factor of a successful export sale.

Documentary Collection

  1. Documentary collection
  2. Clean Collection
  3. Bill of Exchange
  4. Managing collections
  5. Documentary Collection Simulation


  1. To learn the differences between clean and documentary collections and analyse the advantages and disadvantages for the importer and  exporter
  2. To find out how to complete a Bank Documentary Collection order and how to manage export collections at the Bank
  3. To understand the difference between documents against acceptance and documents against payment

Examples of the Course (Subject) - Methods of payment/Letters of Credit:
Documentary credits

Letter credit

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Description of the Course / Subject (Methods of payment/Letters of Credit):

A documentary credit is an agreement under which a Bank is acting at the request and on instructions of the importer makes an undertaking to effect payment to the exporter against presentation of the required documents within the specified period, provided that the documents strictly comply with the terms and conditions stipulated in the documentary credit.

The Letters of Credit are more favourable for exporters rather than importers, as they are aimed at protecting the exporter.

This is a short but crucial subject. The ability of the trade practitioner and their bankers to issue documentary credits, which are complete and precise, is essential. This subject will familiarise the student with the role of the Issuing Bank, how to complete the documentary credit application form and most importantly how to analyse the credit as issued.

Letters of Credit

Documentary Collection

It is a method of payment whereby the exporter initiates, through the banking system, the collection of money due to him from the importer.

  1. Payment will be made against a Bill of Exchange and documents of title.
  2. Documents can be released against acceptance of the Bill of Exchange or payment at sight.

This subject will give the student a practical understanding of this popular method of payment.

The Uniform Rules for Collections (International Chamber of Commerce Publication), shall apply to all collections where such rules are incorporated into the text of the “collection instruction.”

In this subject; we will provide practical examples of the application of URC 522. All serious International Trade specialists should obtain a copy of this International Chamber of Commerce Publication.

Related information:

  1. Single Euro Payments Area
  2. Russian payment system
  3. Asian Clearing Union (ACU)
  4. Latin American Integration Association (ALADI)

European Central Bank (ECB)

(c) EENI Business School & HA University