Philippine customer payment method Filipino businessmen rarely use letters of credit to pay unless the goods have no customs duties. Due to the high tariffs and loose foreign exchange management system in the Philippines, Filipino businessmen generally use payment methods such as down payment or partial payment in advance to avoid tariffs. To this end, Filipino businessmen mostly use D/P or T/T when importing.
1, D/P payment document. Generally speaking, bills of lading and other documents are sent to the bank after shipment. After the importer pays the payment, the bank will hand over the bill of lading and other documents to the importer for customs clearance and delivery. Because the bill of lading is a valuable document, in layman's terms, it means cash on delivery. It should be noted that exporters have certain risks.
2. Wire transfer. Generally, 30% T/T is paid in advance, that is, after the order is confirmed, the buyer will wire 30% of the payment to the seller. After the goods are shipped, the seller will fax it to the buyer to prove that the goods have been shipped away, and then the buyer will wire it.
3. Western Union remittance. Compared with bank remittance, the outlets of Western Union remittance are dense. However, there is a limit on the amount of Western Union remittance, and the operation is a bit troublesome, so you need to fill out the remittance slip. But the exchange rate offered by Western Union is much worse than that offered by banks.