Product Detail

A Bank Payment Obligation (BPO) is an irrevocable agreement to pay issued by your customer's bank (the Obligor Bank) to your bank (the Recipient Bank, i.e., SCB) upon verification that your trade data meets your customer's conditions as specified in the BPO.  

                •           The trade data that you provide confirms your performance meeting your customer's conditions. This typically includes commercial, transport, insurance or certification information, which you must present to SCB to check against the conditions specified in the BPO.

 

A BPO is similar to a Letter of Credit (L/C) because the party obligated to pay is your customer's bank, which must pay after confirming your company has complied with all the pre-set conditions. Unlike an L/C. however, a BPO relies on an electronic platform (aTransaction Matching Application, or TMA) to verify the information, as opposed to physical checking of L/C documents by bank personnel. A BPO supports the sending and receipt of information electronically rather than sending original physical documents.

Highlights

• When SCB acts as your Recipient Bank under a BPO, we can also provide payment Confirmation service in any instance where your company is not confident that it will receive payment because of uncertainty about your customer's Obligor Bank or country

If the Obligor Bank is unable to make payment, or if the country of the Obligor Bank restricts such payment, SCB will pay your company if the TMA check shows your trade data is correct
Benefits

  • Provides payment confirmation under BPOs issued by Obligor Banks around the world
  • Easily submit application for service online or at any of SCB's International Trade Service Centers located nationwide

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