Payment Routing

Payment Routing refers to the complete chain through which the buyer transfers the payment from their own account to the seller's account in international trade, including nodes such as the remitting bank, intermediary bank, receiving bank, and settlement systems (e.g., SWIFT, CHIPS, Fedwire). It is commonly used in settlement methods such as letters of credit, telegraphic transfer (T/T), and documentary collections, especially when cross-border and multi-currency transactions are involved, where the choice of route directly affects arrival time, fees, and exchange rate costs. Precautions: It is necessary to clearly instruct the correspondent bank information (e.g., SWIFT Code, ABA number) to avoid returned payments or delays caused by unclear routing; countries with high sanctions risk require compliance review of intermediary banks in the route. Difference from 'payment method': payment method refers to settlement instruments such as letters of credit and T/T, while payment routing focuses on the physical channel of fund flow. It is similar in meaning to 'remittance route,' but places more emphasis on interbank agreements and system selection. In practice, optimizing the route can save 1-3 business days and intermediary bank deductions.