Trade Payment Calculator

A Letter of Credit typically costs 0.5%–1.5% of the transaction value, plus fixed issuance and amendment fees ($50–$200 per document). For a $100,000 LC, expect $500–$1,500 in total fees. Costs vary by bank, country, and LC complexity.

Bank transfer is cheaper (typically 0.3%–0.7% plus a fixed wire fee), but offers less protection. A Letter of Credit costs more (0.5%–1.5% plus fixed fees) but provides bank-guaranteed payment on presentation of compliant documents — critical for high-value or new relationships.

Documentary collection is a payment method where the seller's bank sends shipping documents to the buyer's bank, and the buyer's bank releases them only after payment (D/P) or acceptance (D/A). It costs less than an LC (typically 0.5%–1%) but offers less protection — the buyer is not obligated by a bank.

Yes, the IMEXLOG Trade Payment Calculator is completely free with no sign-up required. If you need a professional report with a full comparison and reference number, you can optionally purchase one for $4.99.

The Professional Payment Comparison Report includes the transaction amount, fee assumptions per method, fee amount and percentage, net received for each method, ranked recommendations, and a unique reference number. It is saved to your IMEXLOG account.

Paying in the seller's currency avoids additional FX conversion fees for the seller — who often passes those fees back to the buyer. But paying in your own currency gives you more control over the exchange rate. Discuss with your counterparty before deciding.

The calculator uses indicative fee assumptions (0.3%–2.9% + fixed fees, depending on method). Actual costs vary widely by bank, country, transaction size, and relationship. Always confirm your bank or provider's actual pricing before relying on the comparison.

Yes. Enter the amount in whatever currency your transaction is denominated in. The percentages apply to any currency. For multi-currency conversions, use the IMEXLOG Currency Calculator first.