International Payments
- Credits: 5
- Ending: Examination
- Range: 2P + 2C
- Semester: winter
- Year: 1
- Faculty of Commerce
Teachers
Included in study programs
Teaching results
Students will possess following abilities:
- basic knowledge of the current system of international payments, payments in the SEPA area in EUR as well as the implementation of payments in foreign currencies,
- knowledge of documentary payment instruments, the use of bills of exchange and checks in international trade, including knowledge of the relevant legislation and international rules for their use,
- knowledge of the functions, requisites and use of payment and non-payment bank guarantees in contracts with an international element of risks associated with the issuance and enforcement of claims of beneficiaries arising therefrom.
Students will obtain following skills:
- the ability to competently assess the benefits of a particular payment term and propose a specific solution,
- the ability to identify the credit and payment risks incurred in trading with foreign partners and to eliminate them through banking and insurance instruments (especially bank guarantees) as well as to design and defend relevant hedging instruments,
- ability to communicate key questions and arguments in written and oral form at a professional level,
- the ability to demonstrate creativity and individual curiosity in the application and synthesis of knowledge as well as problem solving in new and diverse situations,
- work effectively as an individual and in a team.
Students will gain following competences:
- the ability of the independent concept of payment terms in domestic and international trade contracts in accordance with the observance of the principles of prudent business in order to eliminate the risks incurred,
- the ability to communicate independently with domestic and foreign financial institutions in connection with the implementation of payment or other financial operations in relation to the corporate environment,
- the ability to independently and responsibly make decisions in business activities and to bear the consequences for their activities, which relate to the financial consequences of contracts in supplier-customer relations and relations with banks, insurance companies and other financial institutions,
- based on knowledge of the possibilities to propose effective solutions for the needs arising in international trade in the phase of preparation, implementation as well as recovery of related receivables or settlement of liabilities.
Indicative content
Use of payment systems in international payments. Legislation in the field of international payments. SEPA instruments for the execution of payments in euro. Selection of payment and security instruments in international trade. Non - documentary payments in international trade. Bills of exchange and their use in international trade. Checks in international trade. Documentary collections in international contracts. Documentary letters of credit in domestic and international contracts. Payment bank guarantees in contracts with an international element. Non - payable bank guarantees for contracts with an international element. Tools to eliminate fraud in the use of international payments. Consumer protection in the field of international payments and financial services.
Support literature
1. RUŽEKOVÁ, Viera – PAVELKA, Ľuboš (2023). Manuál exportéra. Bratislava: EKONÓM.
2. BENSON, Carol (2020). Global Payments: And the Fintech Innovations Changing the Industry Paperback, San Mateo, California, Glenbrook Publishing.
3. PAVELKA, Ľuboš - RUŽEKOVÁ, Viera - ZUBAĽOVÁ, Ľubica. (2021). Inštitucionálna podpora financovania exportu a zahraničných investícií vo vybraných krajinách EÚ.1. vydanie. Praha: Leges, 196 s.
4. SANG, MAN KING (2021). Payment Methods and Finance for International Trade 1st ed., Berlin: Springer Publisher Edition.
Syllabus
1. Use of payment systems in international payments (MPS): the importance of correspondent banking in the field of MPS. 2. Legislation in the field of international payments: Rights and obligations of participants in transactions with an international element arising from Slovak and international legislation and the Uniform Customs and Rules of the International Chamber of Commerce Paris. 3. SEPA instruments in the execution of payments in euro: execution of payments and other payment instruments in the conditions in the SEPA area. 4. Selection of payment and security instruments in international trade: The strategy of choosing the optimal instruments from the point of view of the exporter and importer and their impact on receivables and payables in contracts with an international element. 5. Non-documentary payments in international trade: Execution of payments in foreign currency from the point of view of companies and participating banks, including tools for digitization of financial services in the field of corporate banking. 6. Bills of exchange and their use in international trade: Issuance and use of bills of exchange in international and domestic trade and elimination of risks associated with them and hedging bills of exchange in trade and credit relations. 7. Checks in international trade and their use in the field of corporate banking. 8. Documentary collections in international contracts: Implementation of international contracts using documentary collections and elimination of related risks. 9. Documentary letters of credit in domestic and international contracts: blockchain letters of credit from the point of view of corporate clients and their banks. 10. Payment bank guarantees in contracts with an international element: Use of abstracts and special payment guarantees in international and domestic trade and credit operations, special types of bank guarantees as a form of institutional support for small and medium-sized enterprises. 11. Non-payment of bank guarantees in contracts with an international element: Bank guarantees for non-payment obligations arising from international contracts and special types of bank guarantees. 12. Tools to eliminate fraud in the use of international payments: Ways of eliminating risks and fraud associated with the submission of counterfeit banking instruments and checking the creditworthiness of banking entities. 13. Consumer protection in the field of international payments and financial services: Resolution of disputes in the business relations of companies with banks and financial consumers
Requirements to complete the course
10% participation in seminars
30% semester project
60% final exam
Student workload
Total: study load 5 credits x 26 h = 130 hours
Separate study load for individual educational activities:
Attendance at lectures: 26 hours
Attendance at seminars: 26 hours
Preparation for the final exam: 13 hours
Semester work processing: 22 hours
Preparation for the final exam: 43 hours
Language whose command is required to complete the course
Slovak, English
Date of approval: 06.03.2024
Date of the latest change: 29.10.2024