Cross-Border Payment Terms, Explained
Plain-English definitions for the payment terms every import/export business should know.
Digital Dollar
A US dollar that exists in digital form — always worth exactly $1.00, moving across borders in minutes with no banks in the middle.
SWIFT Transfer
A bank-to-bank international wire that routes through the SWIFT network — typically taking 3–5 business days and costing 3–7% in combined fees.
Correspondent Bank
An intermediary bank that processes international wires on behalf of banks without a direct relationship — adding delays and fees at each hop.
Payment Settlement
The final step in a transaction — when money actually moves from the sender's account to the recipient's account (separate from authorization).
International Invoice
A formal payment request sent by an exporter to an importer in another country, documenting the goods sold, currency, amount, and payment terms.