Among many modes of payment in international trade, there are three basic ones which are commonly used: remittance, collection and letter of credit. Remittance means that the importer remits the amount of money to the exporter through banks according to the terms and time stipulated in the contract. There are three kinds of remittance: Mail Transfer (M/T), Telegraphic Transfer (T/T) and Demand draft (D/D). Remittance is often used in payment in advance, cash with order and open account. It is usually used between companies which are trustworthy to each other in former transaction. When the exporter is expanding his market, remittance can be used as a kind of preferential treatment offered to the importers.