Home About Contact  
Export Assistance
Guides to Exporting
Finding Export Finance
Export Consultants
Export Documentation
Register as an exporter
Proforma Invoice
Commercial Invoice
Letters of credit
Packing Lists
Exchange Control Forms
Insurance Forms
Customs Documents
Document Completion Guide
Export Training
Training providers
Training calendar
Export Guide
Export Marketing
What is involved in export Marketing?
Export Marketing Channels
Using Export Agents
Finding Export Agents
The Role of Trade Fairs
Preparing to participate in a Trade Fair
Finding Trade Fairs
Inward Bound Missions
Outward Bound Missions
The Internet and Exporting
Website internationalisation
Export portals
Overseas Trade Missions
Embassies and Consulates
Financial Assistance for Export Marketing
ETO Systems
Dealing with Export Environments
Trade Agreements
Export Tools
Export Readiness Checker
Export Checklists
Export Business Planner
Export SWOT Analyser
Country Risk Evaluator
Product map
Translation Resources
Currency Converter
Export Documentation
Document Completion Guide
SA and Foreign Tariff Databases
Export Software & Technology solutions
Tracking tools
Exporting & the internet
Export e-Newsletter
Export Law
Laws affecting Exports
Maritime Insurance
Exchange Control
SA Export Regulations
Trade/Maritime Lawyers
ITC Services

Step 19: Getting paid

You are here:Step 19: Getting paid > Payment terms > Remitting cash payments



Remitting cash payments


Making cash payments is the remittance basis of two methods of payment; namely, payment in advance and open account. Cash can be transferred in the following ways:

  • Importer's own cheque

    The importer (the payer or debtor) may choose to pay you, the exporter, using a cheque issued by them. This is not common in exporting especially between countries that have little common ground in as far as their banking systems are concerned. Your risk is that the cheque may 'bounce' (go unpaid) and it is a cumbersome means of payment because when you attempt to deposit the cheque, your bank will almost certainly want to send the cheque back through the banking channels to the importer's bank to request them to transfer the funds to your bank, only after which they will pay you (unless they have an existing relationship with the overseas bank). This will take time and cost you money (assuming that no administative problems raise their head). This method of cash payment is to be discouraged.

  • Banker's demand draft (D/D)

    This is a better form of cash payment than an importer's cheque and involves the importer's bank arranging a demand draft (a special written bank instruction) which is issued to the importer for him/her to send by post or courier or to deliver personally to the exporter. It is the importer's responsibility to ensure that the demand draft gets to the exporter. When the exporter receives the demand draft, he/she will approach the importer's bank's correspondent bank in South Africa for payment (or ask their own local bank to make the approach to the correspondent bank for payment). As the demand draft may be posted or delivered by hand, it may get lost or damaged in the process. A banker's draft cannot be stopped and a new draft will only be issued with a guarantee of indemnity from the importer/exporter.

  • Mail transfer (M/T)

    In the case of a mail transfer payment, the importer will request his/her bank to instruct their correspondent bank in South Africa to pay you a given amount. The instruction is sent to the correspondent bank through the post office or courier company. This is low cost form of payment, but is also very slow.

  • Telgraphic transfer (T/T)

    This remittance method works the same way as with a mail transfer, except that the message is transmitted by cable or telex instead of airmail.

  • SWIFT transfers

    SWIFT, which stands for Society for Worldwide Interbank Financial Telecommunication, is a computerised system which replaces both the telex and mail for bank to bank transfer. Very common today in our computerised world, most larger (and urgent) amounts are transferred using SWIFT. It is (relaively) quick, secure and convenient.

  • Credit card

    Credit cards are often used to make payments for smaller amounts. There is a well-established payment system for credit card transactions and it is a very easy and relatively safe method of payment.

  • International Money Orders

    These are similar to postal orders and are pre-printed. They are therefore cheaper to obtain than a Banker's Draft but, again, run the risk of loss in transit. Perhaps one of the most well-known companies dealing in international money orders, is Western Union.


Top of page


Step 19: more information

Step 19: Getting paid
      Payment methods
      Payment terms
            .Credit terms       

Click where you want to go

© Interactive Reality

More information on Step 19
Learning to export...
The export process in 21 easy steps
Step 1: Considering exporting
Step 2:Current business viability
Step 3:Export readiness
Step 4:Broad mission statement and initial budget
Step 5:Confirming management's commitment to exports
Step 6: Undertaking an initial SWOT analysis of the firm
Step 7:Selecting and researching potential countries abroad
Step 8: Preparing and implementing your export plan
Step 9: Obtaining financing for your exports
Step 10: Managing your export risk
Step 11: Promoting the firm and its products abroad
Step 12: Negotiating and quoting in exports
Step 13: Revising your export costings and price
Step 14: Obtaining the export order
Step 15: Producing the goods
Step 16: Handling the export logistics
Step 17: Export documentation
Step 18: Providing follow-up support
Step 19: Getting paid
Step 20: Reviewing and improving the export process
Step 21: Export Management
Export Reference
HS Codes
SIC Codes
Country Codes
Airline Codes
Airport Codes
Port Codes
Telephone Codes
Industry specific export control
Electricity Voltages
Transportation Types
Container Types
Hazardous Cargo Symbols
International Trade Agreements
Country Info
Export Documentation
Trading cycle
Export Articles
Export Glossary
Export Acronyms
Export Opportunities
Export portals
Export calendar
Inward Bound Missions
Outward Bound Missions
Trade Fairs SA
International Trade Fairs
Country Info
Country Help
SA Missions Abroad
Missions in SA
SA Representatives
Bilateral Chambers
Export Network
SA Economic Representatives
SA Missions Abroad
Missions in SA
Export Councils
Export Consultants
Export Trainers
Export Agents
Customs Clearing Agents
Trading Companies
Export Financiers
Bilateral Chambers
Government Departments
Trade Associations
Freight Forwarders
Airline Companies
Shipping Lines
Road Haulers
Courier companies
Trade/Maritime Lawyers
World Trade Point Federation
South African Translators
Universities with international Expertise
International Trade Statistics
Import and Export Statistics
Main Trading Partners
Main Export Products
Economic Statistics
SA Statistics
SA Reserve Bank
Data Mapper®
UNCTAD Statistics


     Our sister sites:

Indexing the World


Trade Training





     Other useful links:

Freight & Logistics Gateway

Freight quotes