credit card(Letter of Credit, L / C) is a payment method commonly used in international trade, is a way for the bank to guarantee the buyer and the seller on behalf of the buyer and the seller, in order to safeguard the rights and interests of the parties to the transaction, through the opening of the credit card.

In international trade, the seller often needs to first apply to the bank to open the credit card, then the bank after verifying the content of the credit card sends a notification to the buyer, the buyer can safely pay the seller after receiving the notification, and the seller can deliver to the buyer in accordance with the requirements of the credit card, thus avoiding the risk of trust between the two sides.

Credit card typically includes the following elements: issuer, beneficiary, payment line, payment period, amount, description of goods, document requirements, etc. issuer is the bank that issued the credit card, the beneficiary is the seller of the receipt, the payment line is responsible for the bank of the payment amount. payment period refers to when the buyer needs to pay to the payment line, the amount refers to the total amount of the goods paid, the description of the goods is the specific description of the goods purchased, the document requirement is the detailed requirements of the various documents needed for payment, such as shipment, invoices, invoices, etc.

The credit card has a wide range of applications in international trade, it can help both buyers and sellers reduce risk and improve transaction efficiency, but also plays an important driving role in the development of credit and international trade in banks.