Payment advice (aviso)

An advice, or aviso (from the Italian avviso: “notice”), informs one party that the other has carried out a transaction: transferred money, credited it, debited it or opened a letter of credit. It is not the basis for a payment but confirmation that the payment has taken place.

Where it is used

Correspondent banks exchange advices when they carry out transactions on each other’s accounts. In international settlements, such notices are sent as messages via SWIFT or other systems.

In documentary settlements there is an advising bank. It informs the seller that a letter of credit has been opened in its favor and passes on the terms.

In foreign trade, the term is often used for the payment confirmation that the buyer forwards to the supplier. The money passes through several banks, and the confirmation lets the supplier plan the shipment before the funds are credited.

How it differs from other documents

A payment order starts a transfer. An invoice requests payment. A statement shows all transactions on an account for a period. An advice reports on a specific transaction.

What to watch for

The amount, currency, date and details in the confirmation must match the invoice. If the supplier does not see the money, the data in the confirmation makes it easier to trace the payment along the chain of banks. So send the document to the supplier right away and keep it with the contract.

In a deal through a broker, the payment confirmation is part of the document package. The client receives it together with the agent’s report and completion certificate and can forward it to the supplier right away.