Payment terms should name the currency of sale, separate payment-related charges from the quoted price, and identify any proposed deduction instead of using an unexplained net adjustment. The U.S. International Trade Administration includes “currency of sale” among quotation details and says letters of credit can entail bank fees. The cited items do not establish a universal fee amount, allocation rule, or deduction formula.
How to check the written terms
| Item | Practical check |
|---|---|
| Currency | Each quoted and payable amount should have an explicit currency label. If the currencies differ, the conversion arrangement and any related cost should be stated separately. |
| Charges | Bank fees and other payment-related charges should be identified as either included in the price or payable separately, with responsibility for payment made clear. |
| Deductions | Each deduction should have a specific description, basis, and point at which it is applied. For comparison purposes, a general reference to “deductions” is not sufficient. |
What the cited guidance confirms
The currency of sale belongs among the details of a quotation. That makes the currency label a basic item to check whenever written quotes are compared.
A letter of credit requires a separate cost check. The cited guidance says that this payment method can involve bank fees, but it does not say that every letter of credit carries the same charge. It also does not specify whether a particular fee is included in the quoted price, paid separately, or allocated between the parties.
Neither cited item provides a rule for creating, calculating, or reversing a deduction. No particular deduction should therefore be inferred from the payment method or from the use of a net figure.
What the buyer must still confirm
Before relying on the payment terms, the buyer should obtain direct written answers to these points:
- Which currency applies to the sale and which currency will actually be paid?
- If the currencies differ, how is the conversion handled and who bears its cost?
- Which charges or bank fees apply, and are they included or additional to the quoted price?
- Who is responsible for each charge, and when is it payable?
- Is any deduction proposed? What is its description, basis, and timing?
- How would cancellation, reversal, or refund affect the charges or deductions?
The cited guidance does not answer these deal-specific questions, so none should be treated as settled unless it is stated clearly in the written terms.