Letters of Credit
What is electronic letter of credit?
Electronic letter of credit is a letter of credit transaction which is carried
by electronic means of communication and issued according to the rules such as
eUCP allowing electronic presentations.
The matching process between letters of credit (LCs) and corresponding documents, such as bills of lading and insurance cover notes can be carried out faster with
v-Eyeballing (online) reducing the processing time and cost.
The new technology is able to perform about 95 to 98 per cent of the matching, the rest being subjective contents for manual viewing.
A normal LC transaction fee can cost up-to US$80, but with
"Electronic Letters of Credit" the cost are as low as between US$8 to US$20 per transaction.
Usually, it takes between
one and four hours to compare original documents, but with
"Electronic Letters of Credit" technology, it can process and tracked in
"Real Time" that allows logistics and insurance agency to submit documents electronically.
Using online LCs can mean shortening the length from sales negotiation to arrival of goods due to lesser paper processing and documents delivery time.
Electronic Letters of Credit facilities are available
with most major international banks.