Payment agent

In Russian law, the term “payment agent” is defined in Federal Law No. 103-FZ: it refers to organizations that accept payments from individuals, for example through payment terminals. In foreign trade, the word is used in a different sense. A payment agent transfers money to a foreign supplier under an agency agreement, in its own name but at the client’s expense. The relationship between the parties is governed by Chapter 52 of the Russian Civil Code.

How the model works

1. The client and the agent sign an agency agreement.
2. For each payment, the client issues a payment order: beneficiary, amount, currency, rate, fee.
3. The client transfers roubles from its account at a Russian bank.
4. The agent sends the currency to the supplier and provides a payment confirmation.
5. The agent reports: the agent’s report and completion certificate are needed for accounting and currency control.

Why an agent is needed

The supplier’s bank may not accept payments from Russia, and the buyer’s bank does not always send the right currency to the right country. The agent has its own accounts and routes that payments go through.

How to choose

• whether the route to the supplier’s country is working right now;
• the full cost: the fee, the FX markup, fixed charges;
• the execution period and the consequences of missing it, as set in the agreement;
• where your money is until execution;
• which documents you will receive.

Agent vs. broker

A single agent is fine as long as its channel works. If the route closes, the payment waits. A broker keeps its own network of agents and, for each payment, selects the one whose route is working right now. Tell us your rate, and we’ll look for a lower one; if we can’t find it, we’ll say so. The client pays the agent’s fee stated in the payment order and does not pay VEDmost separately. More details: Broker, agent or bank.