Algeria - Methods of PaymentAlgeria - Methods of Payment
U.S. firms have encountered relatively few payment problems or disputes with Algerian companies or government bodies. Due to a 2009 Algerian government measure, Algerian companies importing more than USD 40,000 worth of goods per year must pay foreign suppliers by letter of credit. In 2010, the Algerian government also limited the terms of letters of credit to 60 days or less. This has created significant headaches for Algerian importers and has reportedly resulted in many smaller importers closing operations. The measure benefits large U.S. exporters and suppliers by expediting and guaranteeing payments by Algerian firms.
U.S. business people should note that Algeria is largely a cash economy, and the use of credit cards is extremely limited. Most common payment terms are used in Algeria, with the exception of payment in advance. Payments for goods are subject to producing an invoice with a bank domiciliation and customs clearance documents.