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Which payment method is safe in Iran?
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TRACKING NO. 20260130 / GLOBAL Zhongshen Trade · 23+ Years of Expert Trade Agency
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Our company wants to expand into the Iranian market, but we've heard that the banking sanctions against Iran are very strict, and many payment methods are not secure. Could you please tell us which payment method is the safest for doing business with Iran now? Are there any reliable payment channels?
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
The primary concern regarding payment security in trade with Iran is the risk of sanctions compliance. The OFAC sanctions imposed by the U.S. on Iran have led to the refusal of most international banks (including Chinese banks) to handle U.S. dollar settlements involving Iran，even through third countries，as this still carries secondary sanction risks. Currently，a relatively compliant approach is RMB settlement，where payments are received through the corporate accounts of Kunlun Bank or local banks in certain border provinces，provided that documents such as contracts，invoices，and bills of lading are strictly consistent and the goods are not on the embargoed list. It is essential to clearly stipulate in the contract the RMB pricing，payment deadlines，and sanctions exemption clauses. It is important to note that any attempt to split payment receipts through underground money lenders or private accounts will face severe penalties from the State Administration of Foreign Exchange and criminal liability. It is recommended to entrust professional law firms to screen against sanctions lists before conducting transactions and obtain compliance confirmation letters from banks.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
From a logistics operational perspective, the security of Iran's payment methods is closely tied to cargo transportation control. For EXW or FCA terms, it is recommended to adopt 100% prepayment or at least 30% down payment + 70% payment before shipment to avoid loss of ownership of the goods. If the customer insists on cash on delivery (CAD), it is necessary to control the original bill of lading through an Iranian freight forwarder with Chinese background and purchase short-term export credit insurance from China Export & Credit Insurance Corporation (Sinosure). Letters of credit (LC) are still available in Iran, but they must be RMB-denominated LCs issued by Iranian banks and guaranteed by Kunlun Bank. The document review period can last up to 30-45 days, and funding occupancy costs must be reserved. For high-value orders, consider transiting through Dubai or Oman, signing contracts and receiving payments under the name of third-country companies, but this will increase logistics and tax costs by 8-12%. The key is that the consignor and consignee information on the bill of lading, packing list, and invoice must fully match the payment path, otherwise the goods will be detained by Iranian customs during clearance.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
In the Iranian market, the choice of payment methods essentially involves a trade-off between trust and risk. For new clients, it is essential to insist on a 50% prepayment and 50% payment upon receipt of the bill of lading copy for the first order—this is the bottom line. Flexible clauses can be included in the contract, such as: "Given the international sanctions environment, both parties agree to prioritize RMB settlement. If the bank refuses payment due to force majeure, the seller reserves the right to require the buyer to complete payment through Kunlun Bank within 7 working days. Otherwise, the seller reserves the right to resell the goods and not refund the deposit." For long-term cooperative clients, a 30% deposit and 70% payment upon delivery can be gradually implemented, but only on the condition that they purchase China Export & Credit Insurance Corporation (Sinosure) insurance policies and transfer the compensation rights to the seller. During negotiations, the key argument should not be "we cannot accept USD," but rather "RMB settlement allows you to avoid exchange rate risks and enjoy a 3% price discount." At the same time, prepare alternative solutions: recommend clients establish branches in Hong Kong or Dubai and make payments through offshore accounts, which is both compliant and efficient. Remember, never disclose that your bank refuses to accept Iranian payments, but instead emphasize "we use safer official channels."