If you want to purchase something in another country, which needs other currency, you need to find a more safe way to pay it. Letters of credit may a good choice. Commercial letters of credit have been used for centuries to enhance payment in international trade. It is a contractual agreement between banks, known as the issuing bank, on behalf of one of its customers, authorizing another bank, known as the advising or confirming bank, to make payment to the beneficiary.

The beneficiary is entitled to payment as long as he can provide the documentary evidence required by the letter of credit. The issuing bank is not liable for the performance of the underlying contract between the customers and beneficiary. The issuing bank's obligation to the buyers is to examine all documents to insure that they meet all the terms and conditions of the credit. Upon requesting demand for payment the beneficiary warrants that all conditions of the agreement have been complied with. If the seller conforms to the letter of credit, the seller must be paid by the bank.