Generally, reports on international trade and payment methods tend to highlight one important aspect in relation to payments: both the buyer and seller are subjected to a certain degree of financial risk - particularly when engaging in a first-time international transaction via an emarketplace. The degree of risk that your company is willing to be responsible for is determined when you negotiate your preferred payment method with a prospective trading partner.

This report will focus firstly by analyzing some of the more traditional payment methods available to small and medium-sized enterprise (SME) exporters and importers before looking at some of the contemporary e-payment methods as used by emarketplaces such as credit cards and online escrow services.

The paper will also look at the risk involved within these various payment methods as each method carries a varying degree of risk for both the buyer and seller.