Presentation Presentation – What is a Letter of Credit? Understanding the main characteristics and usage of a letter of credit. By Ozgur Eker (CDCS) - 27 January 2019 0 9556 FacebookTwitterPinterestWhatsApp BackNext2. Understanding the Letter of CreditLetter of credit is a payment method in international trade.Other payment methods in international trade are Cash in Advance, Documentary Collections, Open Account and Bank Payment Obligation. BackNext