Bank payment obligation

Cash management and trade finance.

(BPO).

A bank payment obligation is an instrument that automates the payment of trade transactions.

It is an irrevocable undertaking of a buyer's bank to pay a specified amount to the seller's bank, when it receives notification of a data match from an independent data matching service.

The buyer's bank is the 'obligor bank' under the BPO.

The seller's bank is the 'recipient bank'.

See also

• Cash management
• Letter of credit
• Data matching
• Obligor bank
• Recipient bank
• Trade finance
• Transaction matching application
• URBPO

Other resource

• International Chamber of Commerce Uniform Rules for Bank payment Obligation (URBPO)