Electronic Letters of Credits: Challenges and Solutions

Abstract Today, paper-based letter of credits are common, despite the expansion of modern technology and communication. By considering the latest achievements in communication technology, and to slow down the decreasing popularity of documentary credits, the International Chamber of Commerce (ICC) ratified the Uniform Customs and Practices for Electronic Documentary Credits (e-UCP) to encourage traders and bankers to employ electronic letters of credits (e-LCs). However, the current technical and legal problems of e-UCP have made the e-LCs useless in international trade. The current study presents a comparative analyses of e-LCs, in order to find the barriers of e-LCs expansion in international trade by using cloud computing. Today, paper-based letter of credits are common, despite the expansion of modern technology and communication. By considering the latest achievements in communication technology, and to slow down the decreasing popularity of documentary credits, the International Chamber of Commerce (ICC) ratified the Uniform Customs and Practices for Electronic Documentary Credits (e-UCP) to encourage traders and bankers to employ electronic letters of credits (e-LCs). However, the current technical and legal problems of e-UCP have made the e-LCs useless in international trade. The current study presents a comparative analyses of e-LCs, in order to find the barriers of e-LCs expansion in international trade by using cloud computing.