International banking payment method of letter of credit?s problems and suggestions for solutions

Letter of credit payment method is the most commonly used payment method in international banking.Letter of credits methods of other payment methods, preferred method of payment is the major cause of the provision of the contract and the rights of the bank and through the importer and exporter contain responsibilities at the same time functioning distributies payment method that allows equally risks.The aim of the study, titled the letter of credit payment problems and solutions, is demonstrate various aspects of the letter of credit and to identify the problems that exporters and importers faced when using this method and also try to find solutions for them.On the exercise of this study,interview has been carried out with the experts on letter of credit transactions.Interview has been made to 95 survey firms of importer and receive detailed answers.At the last part of this research, the answers from the importer firms about the problems they face during execution of Letter of Credit transactions and solutions proposals have been studied in detail.Key Words: International banking, letter of credits, terms of payments in international banks, letter of credit transactions.