Bank payment obligation

(BPO).

A bank payment obligation is a payment instrument that automates the payment of trade transactions. It is an irrevocable undertaking of the importer’s bank to pay a specified amount to the exporter’s bank when it receives notification of a data match from an independent data matching service.

See also

• Letter of credit

Other links

• Payment Pledge, The Treasurer, July 2013

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