Payment

Methods
for International Trade
UF1 – SIMPLE PAYMENT METHODS

Teachers: Josemi Castelló & Raquel Lendines

UF 1 - PART 2
- Area in Europe where citizens and companies send and receive payments in Euros with the
same conditions and formats.
- The use of common communication systems makes international transactions faster, more
agile and cheaper for all countries from the Area.

- 27 Countries from EU.

- Also Islàndia, Liechtenstein, Mònaco, Noruega, Suïssa
- From 2019 , also, Andorra i El Vaticà.
- From January 2021 , UK left the EU but they still belong to SEPA
 SWIFT SYSTEM
The Society for Worldwide Interbank Financial Telecommunication (SWIFT),
legally S.W.I.F.T. SC, is a Belgian cooperative society providing services related to the
execution of financial transactions and payments between banks worldwide.

Its main function is to serve as the main messaging network through which international
payments are initiated

It is headquartered in Belgium, it is controlled by USA Companies.

Read: Russia out from SWIFT System

https://www.eldiario.es/internacional/theguardian/swift-supondria-rusia-fuera-
sistema_1_8780928.html
 SWIFT SYSTEM (2)
Structure of a BIC/SWIFT Code:
- Entity Code AAAA (4 characters)

- Country Code BB (2 characters)

- City code CC (2 characters )

- Branch Code XXX (3 characters) Mostly not used and substituted by X character

https://www.iban.es/codigos-bic.html

BSABESBB BANCO DE SABADELL

BSCHESMM BANCO SANTANDER

CAIXESBB CAIXABANK
 SWIFT SYSTEM (3)
Important fields on an SWIFT Message:

• Field 20: Sender Bank reference number

• Field 23: Transaction Bank Code (CRED: regular transfer)
• Field 32A: Date, Currency Code and Amount
• Field 33B: Amount
• Field 50: Sender (Of the payment, payer)
• Field 57A: Beneficiary’s bank data
• Field 59: Beneficiary (Name,Account number, address, etc)
• Field 70: Details of payment (Explanation of why the payment is done)
• Field 71: Costs (3 options: SHA (Shared), OUR(sender pays costs) i BEN(beneficiary
pays costs)
SWIFT SYSTEM (4)
 Remittances (Remeses)
Simple Documentary
- When a Company needs to collect a number - The same than simple remitances but in this
of documents of payment as Promissory case we must attach a number of documents
Notes or Bills of Exchange they can go to a as the Invoice, Packing List, Bill of Lading,
Bank for the collecting management. etc… to our bank for the management of the
- Also if the payment date is in the future and collecting remittance
we don’t want or can’t wait, or need the money
in the present day, companies can ask their
Bank a cash advance. Paying comissions and
fees.

Physical Electronic
- The payment documents that are sent to our - In order to gain time and avoiding costs, it is
Bank are physical documents as Promissory posible to send remittances in electronic format.
Note or Bill of Exchange
Promissory Note (PAGARÉ)
Payment
Methods
for International Trade
UF1 – SIMPLE PAYMENT METHODS
(part 2)

Teachers: Josemi Castelló & Raquel Lendines