{"id":1772,"date":"2026-04-10T11:00:22","date_gmt":"2026-04-10T11:00:22","guid":{"rendered":"https:\/\/hplog.webcanhcam.vn\/thu-tin-dung-l-c-la-gi-quy-trinh-va-luu-y-khi-thanh-toan-quoc-te\/"},"modified":"2026-05-16T04:03:03","modified_gmt":"2026-05-16T04:03:03","slug":"thu-tin-dung-l-c-la-gi-quy-trinh-va-luu-y-khi-thanh-toan-quoc-te","status":"publish","type":"post","link":"https:\/\/hplog.com.vn\/en\/news\/what-is-a-letter-of-credit-l\/c-process-and-key-notes-in-international-payment\/","title":{"rendered":"What Is a Letter of Credit (L\/C)? Process and Key Notes in International Payment"},"content":{"rendered":"<p dir=\"LTR\" style=\"text-align: justify;\">In international trade, a Letter of Credit (L\/C) is one of the safest and most widely used payment methods, especially when the buyer and seller do not yet have an established transaction history.<\/p>\n<p dir=\"LTR\" style=\"text-align: justify;\"><strong>What is a Letter of Credit (L\/C)?<\/strong><\/p>\n<p style=\"text-align: justify;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-237 size-full\" src=\"https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-2.jpg\" alt=\"\" width=\"1162\" height=\"600\" srcset=\"https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-2.jpg 1162w, https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-2-300x155.jpg 300w, https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-2-1024x529.jpg 1024w, https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-2-768x397.jpg 768w\" sizes=\"auto, (max-width: 1162px) 100vw, 1162px\" \/><\/p>\n<p style=\"text-align: justify;\">A Letter of Credit (L\/C) is a conditional payment commitment issued by a bank at the request of the buyer (importer), guaranteeing payment to the seller (exporter) once the seller presents documents that comply with the terms and conditions specified in the L\/C.<\/p>\n<p style=\"text-align: justify;\">Simply put, the bank acts as a payment guarantor, but payment will only be made when the documents are complete and fully compliant.<\/p>\n<p style=\"text-align: justify;\"><strong>Characteristics of a Letter of Credit (L\/C)<\/strong><\/p>\n<p style=\"text-align: justify;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-238 size-full\" src=\"https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-3.jpg\" alt=\"\" width=\"743\" height=\"414\" srcset=\"https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-3.jpg 743w, https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-3-300x167.jpg 300w\" sizes=\"auto, (max-width: 743px) 100vw, 743px\" \/><\/p>\n<p style=\"text-align: justify;\"><strong>Key Characteristics of a Letter of Credit (L\/C)<\/strong><\/p>\n<ul>\n<li style=\"text-align: justify;\">Independent from the sales contract: The bank deals only with documents and does not intervene in disputes related to the goods.<\/li>\n<li style=\"text-align: justify;\">Document-based payment: \u201cPayment against documents\u201d \u2013 payment is made only when the documents comply with the L\/C requirements.<\/li>\n<li style=\"text-align: justify;\">Conditional commitment: Even a small discrepancy in the documents may lead to payment refusal.<\/li>\n<li style=\"text-align: justify;\">Governed by UCP 600 rules issued by the International Chamber of Commerce (ICC).<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\">Common Types of Letter of Credit (L\/C)<\/h3>\n<table style=\"border-collapse: collapse; width: 100%; height: 216px;\">\n<tbody>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px;\"><strong>Type of Letter of Credit<\/strong><\/td>\n<td style=\"width: 33.3333%; height: 24px;\"><strong>Key Characteristics<\/strong><\/td>\n<td style=\"width: 33.3333%; height: 24px;\"><strong>Notes \/ Application Examples<\/strong><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px;\"><strong>Revocable Letter of Credit<\/strong><\/td>\n<td style=\"width: 33.3333%; height: 24px;\">Can be amended or canceled without prior notice to the seller.<\/td>\n<td style=\"width: 33.3333%; height: 24px;\">Rarely used today due to high risk.<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px;\"><strong>Irrevocable Letter of Credit<\/strong><\/td>\n<td style=\"width: 33.3333%; height: 24px;\">Cannot be changed without the consent of all parties involved.<\/td>\n<td style=\"width: 33.3333%; height: 24px;\">Most commonly used, protects the seller\u2019s interests.<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px;\"><strong>Confirmed Letter of Credit<\/strong><\/td>\n<td style=\"width: 33.3333%; height: 24px;\">A bank in the seller\u2019s country adds its confirmation to guarantee payment.<\/td>\n<td style=\"width: 33.3333%; height: 24px;\">Increases security, especially when the buyer is in a high-risk country.<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px;\"><strong>Transferable Letter of Credit<\/strong><\/td>\n<td style=\"width: 33.3333%; height: 24px;\">Allows the beneficiary to transfer the right to receive payment to a second party.<\/td>\n<td style=\"width: 33.3333%; height: 24px;\">Often used in intermediary trading.<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px;\"><strong>Back-to-Back Letter of Credit<\/strong><\/td>\n<td style=\"width: 33.3333%; height: 24px;\">A new L\/C is issued based on an existing L\/C.<\/td>\n<td style=\"width: 33.3333%; height: 24px;\">Used when an intermediary does not have sufficient capital.<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px;\"><strong>Revolving Letter of Credit<\/strong><\/td>\n<td style=\"width: 33.3333%; height: 24px;\">Automatically reused for recurring orders.<\/td>\n<td style=\"width: 33.3333%; height: 24px;\">Suitable for long-term supply contracts.<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px;\"><strong>Standby Letter of Credit<\/strong><\/td>\n<td style=\"width: 33.3333%; height: 24px;\">Acts as a payment guarantee if the buyer fails to fulfill obligations.<\/td>\n<td style=\"width: 33.3333%; height: 24px;\">Similar to a bank guarantee.<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 33.3333%; height: 24px;\"><strong>Documentary Letter of Credit<\/strong><\/td>\n<td style=\"width: 33.3333%; height: 24px;\">Payment is made based on the presentation of commercial documents.<\/td>\n<td style=\"width: 33.3333%; height: 24px;\">The most basic and widely used type of L\/C.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\">According to international practice, <strong>if an L\/C does not explicitly state that it is \u201crevocable,\u201d it is automatically considered \u201cirrevocable.\u201d<\/strong> (non-revocable).<\/p>\n<ul style=\"text-align: justify;\">\n<li><strong>For the Exporter:<\/strong><\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li>The bank <strong>guarantees payment<\/strong> if the documents comply with the L\/C terms.<\/li>\n<li><strong>Reduces the risk of non-payment<\/strong> from the buyer.<\/li>\n<li>The L\/C can be <strong>discounted to obtain working capital financing<\/strong>.<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li><strong>For the Importer:<\/strong><\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li>Payment is made only when the seller presents the required documents.<\/li>\n<li>Better control over delivery terms and conditions.<\/li>\n<li>Enhances credibility with international partners.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>Risks and Important Considerations<\/strong><\/p>\n<ul style=\"text-align: justify;\">\n<li>Goods may not match reality: Banks only examine documents, not the actual goods.<\/li>\n<li>High costs and deposit requirements: Importers may need to deposit 10\u2013100% of the contract value.<\/li>\n<li>Document discrepancies: Even small errors in documents can lead to payment refusal by the bank.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Businesses should carefully review the L\/C terms and prepare the document set with absolute accuracy.<\/p>\n<p style=\"text-align: justify;\"><strong>Basic Contents of a Letter of Credit (L\/C)<\/strong><\/p>\n<p style=\"text-align: justify;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-239 size-full\" src=\"https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-4.jpg\" alt=\"\" width=\"771\" height=\"439\" srcset=\"https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-4.jpg 771w, https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-4-300x171.jpg 300w, https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-4-768x437.jpg 768w\" sizes=\"auto, (max-width: 771px) 100vw, 771px\" \/><\/p>\n<ul style=\"text-align: justify;\">\n<li>L\/C number, date of issuance, and place of issuance.<\/li>\n<li>Type of Letter of Credit: (Irrevocable, Confirmed, Revolving, Transferable, etc.).<\/li>\n<li>Information of the parties involved: Applicant (buyer), Beneficiary (seller), Issuing Bank, Advising Bank, etc.<\/li>\n<li>Payment value and currency.<\/li>\n<li>Validity period and document presentation deadline.<\/li>\n<li>Delivery conditions: (Incoterms, port of loading \u2013 port of discharge, mode of transport).<\/li>\n<li>Goods details: product name, quantity, weight, specifications.<\/li>\n<li>Required document list: commercial invoice, bill of lading (B\/L), certificate of origin (CO), insurance documents, packing list, etc.<\/li>\n<li>Payment commitment of the issuing bank.<\/li>\n<li>Bank charges, dispute settlement clauses, and transferability provisions.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>L\/C Payment Process (6 Basic Steps)<\/strong><\/p>\n<ol style=\"text-align: justify;\">\n<li>The buyer requests the bank to issue a Letter of Credit (L\/C).<\/li>\n<li>The issuing bank sends the L\/C to the advising bank.<\/li>\n<li>The advising bank forwards the L\/C to the seller (beneficiary).<\/li>\n<li>The seller ships the goods and submits the required documents.<\/li>\n<li>The bank examines the documents.<\/li>\n<li>If the documents comply \u2192 payment is made; if discrepancies occur \u2192 they are handled according to agreement.<\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><strong>The Role of Logistics Companies in L\/C Payments<\/strong><\/p>\n<p style=\"text-align: justify;\">In practice, most L\/C discrepancies arise from transport documents, such as the bill of lading, cargo description, vessel departure date, and ports of loading and discharge.<\/p>\n<p style=\"text-align: justify;\">Therefore, choosing an experienced logistics provider is a crucial factor in minimizing payment risks under an L\/C transaction.<\/p>\n<p style=\"text-align: justify;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-236 size-full\" src=\"https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-1.jpg\" alt=\"\" width=\"1166\" height=\"645\" srcset=\"https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-1.jpg 1166w, https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-1-300x166.jpg 300w, https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-1-1024x566.jpg 1024w, https:\/\/hplog.com.vn\/wp-content\/uploads\/2026\/03\/Thu-Tin-Dung-LC-La-Gi-Quy-Trinh-Va-Luu-Y-Khi-Thanh-Toan-Quoc-Te-1-768x425.jpg 768w\" sizes=\"auto, (max-width: 1166px) 100vw, 1166px\" \/><\/p>\n<p style=\"text-align: justify;\"><strong>Supporting Businesses<\/strong><\/p>\n<p style=\"text-align: justify;\">At <strong>HP Log<\/strong>, we provide support in:<\/p>\n<ul>\n<li style=\"text-align: justify;\">Checking transport documents to ensure full compliance with L\/C requirements<\/li>\n<li style=\"text-align: justify;\">Monitoring bookings and document presentation deadlines<\/li>\n<li style=\"text-align: justify;\">Coordinating with banks and international partners<\/li>\n<li style=\"text-align: justify;\">Ensuring shipments and payments are completed on schedule<\/li>\n<li style=\"text-align: justify;\">Understanding L\/C correctly not only helps businesses ensure secure payments, but also strengthens risk management in import\u2013export operations.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Hi\u1ec3u \u0111\u00fang L\/C kh\u00f4ng ch\u1ec9 gi\u00fap doanh nghi\u1ec7p an to\u00e0n trong thanh to\u00e1n, m\u00e0 c\u00f2n n\u00e2ng cao n\u0103ng l\u1ef1c qu\u1ea3n tr\u1ecb r\u1ee7i ro trong xu\u1ea5t nh\u1eadp kh\u1ea9u.<\/p>\n<p style=\"text-align: justify;\">If your company is conducting international transactions using L\/C payment methods and needs a reliable logistics partner, please contact <strong>HP Log<\/strong> via <strong>hotline <a href=\"tel:0913472492\">0913472492 <\/a><\/strong>or <strong>email <a href=\"mailto:hplog2025@gmail.com\">info@hplog.com.vn<\/a><\/strong> for detailed support.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In international trade, a Letter of Credit (L\/C) is one of the safest and most widely used payment methods, especially when the buyer and seller do not yet have an established transaction history. What is a Letter of Credit (L\/C)? A Letter of Credit (L\/C) is a conditional payment commitment issued by a bank at [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1283,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"rank_math_lock_modified_date":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-1772","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/hplog.com.vn\/en\/wp-json\/wp\/v2\/posts\/1772","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hplog.com.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hplog.com.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hplog.com.vn\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hplog.com.vn\/en\/wp-json\/wp\/v2\/comments?post=1772"}],"version-history":[{"count":6,"href":"https:\/\/hplog.com.vn\/en\/wp-json\/wp\/v2\/posts\/1772\/revisions"}],"predecessor-version":[{"id":2181,"href":"https:\/\/hplog.com.vn\/en\/wp-json\/wp\/v2\/posts\/1772\/revisions\/2181"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hplog.com.vn\/en\/wp-json\/wp\/v2\/media\/1283"}],"wp:attachment":[{"href":"https:\/\/hplog.com.vn\/en\/wp-json\/wp\/v2\/media?parent=1772"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hplog.com.vn\/en\/wp-json\/wp\/v2\/categories?post=1772"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hplog.com.vn\/en\/wp-json\/wp\/v2\/tags?post=1772"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}