The need for international settlements is caused by the presence of financial obligations of various nature arising in the process of implementing numerous forms of foreign economic relations, as well as foreign trade transactions between foreign partners. The conduct of financial transactions and the procedure for their execution is largely determined and depends on international practice.
The history of the development of economic systems is an endless chain of attempts to simplify, facilitate and accelerate payments and settlements between participants in economic turnover.
Calculations are an exchange of information between a payer and the recipient of money, as well as financial intermediaries (banks) on the procedure and methods for paying off obligations.
Payment is an irrevocable and unconditional transfer of money by the payer to the recipient, completing the settlement process.
The final payment, therefore, consists in the transfer of money, i.e. the type of financial assets recognized in this company, accepted by all participants in the turnover in payment for goods and services and in repayment of debts.
Payment, i.e. the final settlement of contractual obligations between economic agents is made by money transfer – transfer of money by the payer to the recipient.
This transfer can be made using a number of financial instruments:
claims against the government in the form of coins and small bills; claims to the central bank in the form of banknotes and funds held in accounts with central banks; claims to commercial banks in the form of deposit balances.
Debet transfer settlement tools include:
checks, including travel and euro checks; bank spending; postal transfers; direct debit write-offs through automated clearing houses.
Credit transfer-based calculations include:
loan orders in automated payment chambers; transfers in the SWIFT payment system; standing orders.
A special classification is made up of plastic cards: credit and debit.
They also distinguish forms of settlements where the payment is preceded by the submission of documents of title.
Thus, the international settlement system is a system for the implementation and regulation of payments on mutual monetary requirements and obligations of legal entities, individuals, other organizations, and the state in the field of international economic relations.