'Letter of Credit' as payment tool?

An alternative to online tool.

[algari]

Are not commercial banks in position to open a 'Letter of Credit' to cover a domain name (which is certainly a virtual merchandise/asset) transaction? If they do then why can't a 'Letter of Credit' by a reputed bank be considered to finalize a domain sale deal? Many problems of payment security are solved in L/C because 'Terms & Conditions’ and their compliance are well described/defined here. Generally international export businesses are using this tool extensively. Only difference can be of 'material' and 'virtual' nature; and it may involve some more time & work.

[Green_Grass]

Having worked with LC's extensively for export of goods, I may say that you need a 'negotiable' transport document' to be able to establish a LC. The 'negotiable transport document' gives physical access to the goods and hence can be 'traded' This is the document that links the 'goods' with the 'documents'.

How can you create such a document for a domain sale?

The banks hold this 'document' as a security while the financial part of the proocess is completed.

This negotiable transport document is normally the Bill of Lading or the Air Way Bill.

[Webwork]

Brilliant Green_Grass. Thanks for sharing your special knowledge about this issue.

[algari]

True. In domain dealing there would not be any instrument to 'hold' to ensure financial security of either party.