Payment on open account involves an agreement between the exporter and the buyer whereby the exporter sends the goods to the buyer together with the shipping documents / and the buyer agrees to pay for the goods at a predetermined date. In the meantime / the buyer can dispose of the goods as he pleases which is / of course / normal business practice when goods are bought on credit. In contrast to payments in advance open account business offers the least security to the exporter / and it requires considerable trust in the buyer to pay as agreed. Like payments in advance / settlement under - an open account transaction might be made simply by check or banker's draft. It might also be made by Mail transfer / or by telegraphic transfer