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TERMS OF PAYMENT Payment in foreign trade may be made in cash and on credit. There are different methods of cash payment: 1. By cheque (but it is not practicable as a cheque is payable in the country of origin and its' use is time-wasting to say the least. That's why cheques are mostly used for payment in home trade.) 2. By telegraphic or telex transfers or post (mail) remittance which is made from theBuyers' bank account to the Sellers' in accordance with the Buyers' letter of instruction. Actually this method of cash payment may sometimes take several months, which is naturally very disadvantageous to the Sellers. The transfer is carried out at current rates of exchange. 3. By letter of credit (or just by credit) - L/C. The following types of letters of credit are usually used: irrevocable, confirmed and revolving.