Discusses the most common methods of payment, such as open account, letter of credit, cash in advance, documentary collections, factoring, etc. Includes credit-rating and collection agencies in this country. Includes primary credit or charge cards used in this country
Last Published: 7/1/2019

As in other markets, payment methods and terms vary depending upon the U.S. company’s business model and relationship with its trading partners.  For companies that are new to this market, requesting advance payment for goods and services from a Kazakhstani customer may be prudent until both parties establish a positive record of payment.  Exporters should also keep in mind that Kazakhstani firms may experience difficult gaining access to credit from local banks due to a weak domestic banking sector and high interest rates that. 

The safest method to receive payment for a U.S. export is through an irrevocable letter of credit (L/C) confirmed by a major Western bank.  In general, importers must deposit enough funds to cover the payment before applying for a letter of credit.  Local companies may apply at any of several major local commercial banks to obtain an L/C, which, according to Kazakhstani banking legislation, must usually be confirmed by a reputable Western bank.  U.S. companies are strongly advised to reconfirm payment arrangements with the importer prior to shipping goods.  A number of U.S. banks accept letters of credit from some of the largest Kazakhstani banks, especially those that have been approved by the U.S. Export-Import Bank.  Once a U.S. firm has established a strong relationship with a local trading partner, it may wish to consider extending short- and eventually longer-term credit as a way to bolster sales volume.  This should be done with caution and only after careful evaluation and the establishment of successful payments.

Kazakhstan made the use of International Bank Account Numbers (IBANs) and Bank Identification Codes (BICs) mandatory in June 2010. If a U.S. company is paying a beneficiary in Kazakhstan or initiating a payment from an account in Kazakhstan, you must provide the beneficiary's IBAN and the beneficiary bank's SWIFT BIC in the payment instructions. Failure to provide an IBAN may result in that payment being rejected, delayed or incurring additional charges.

As of May 2019, the National Bank’s refinancing rate is 9%.  Current inflation rate as of May 2019 is 4.9%.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.