What Is The Exchange? What Are The Characteristics Of The Exchange Settlement?

Remittance is a way of settlement by which remittance units entrust banks to remit funds to different places.

According to the different ways of pferring money and the way of delivery, the exchange of foreign exchange can be divided into two types: Mail Transfer and telegraphic pfer.

Mail remittance is a remittance settlement method that the remittance holder applies to the bank and pays a certain amount and fee, sending the letter of remittance to the remittance bank by mail, and authorizing the remittance bank to settle a certain amount of money to the payee.

Telegraphic pfer is a way of remittance into a remittance bank where a certain amount of money is paid to the remittance bank. The remittance bank sends a telegram or telex to the destination's branch or agency (remittance), instructing the remitting bank to pay a certain amount of remittance to the payee.

In these two exchange settlement methods, the cost of mail pfer is relatively low, but the rate is relatively slow, and the remittance rate has the advantage of fast speed, but the remittor has to pay higher telegraphic and telex costs, which is usually applied only in case of emergency or when the amount is large.

In addition, in order to ensure the authenticity of the telegram, the remittance password is added to the telegram.

Exchange settlement has wide application scope, simple and convenient procedures, flexible and convenient. Therefore, it is a widely used method of settlement.

First, exchange settlement, whether it is mail pfer or telegraphic pfer, does not have the limit of starting point, and it can be used no matter how much money is available.

Second, exchange settlement is a settlement method that remittances pay to different places voluntarily.

It is very convenient for adjusting funds, clearing old debts and settling accounts between different units.

The exchange settlement method is also widely used for paction settlement after remittance.

If the sales unit does not have a clear understanding of the creditworthiness of the purchasing unit or the commodity is relatively tight, the purchase unit can make the remittance first, and then deliver the goods after receiving the payment, so as not to return the goods.

Of course, when purchasing units adopt the mode of paction after remittance, they should have a thorough understanding of the unit's credit standing and supply capacity, so as not to blindly remit funds but not receive the goods.

If there is a lack of understanding of the status and supply capacity of the sales unit, the funds can be remitted to the purchasing place, and temporary depositors shall be opened at the place of purchase, and the people shall be supervised and paid.

Third, exchange settlement not only applies to the allocation of funds between units, but also can be used for individual payments of units in different places, such as retirement wages, medical expenses, various labor costs, remuneration, etc., and it can also be applied to personal payments to other units, such as mail order goods, books and periodicals.

Fourth, exchange settlement procedures are simple and easy, and units or individuals are easy to handle.