The importer will seek to purchase from an exporter, generally in another country. The exporter wants assurance of payment but the importer also wants assurance that the seller can deliver. A banker’s acceptance is a form of payment backed by a bank that eliminates transaction-related risks for...
representing a guaranteed future payment by the bank. Upon acceptance from the bank, the liability transfers from the issuer of the banker’s acceptance and becomes an obligation of the bank. As such, the credit rating of
and the potential for alternative payments displacing cards is real. Amazon’s recent decision to move away from Venmo acceptance brings into question merchant adoption of alternative
representing a guaranteed future payment by the bank. Upon acceptance from the bank, the liability transfers from the issuer of the banker’s acceptance and becomes an obligation of the bank. As such, the credit rating of