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Trade Exchange

General description

A trade exchange is a generic currency type for business-to-business (B2B) transactions that take place digitally in a mutual credit system. This currency system facilitates the exchange of goods or services between trading partners with the use of a currency recognised and accepted exclusively between trading partners themselves.

A trade exchange is an organization serving as a third party to coordinate the transactions between trading partners via an electronic clearing house, and acts as a bank to keep track of the value and volume of the transactions. Trade exchanges are usually local or regional, and they have websites which list products or services for sale and requested . If you buy products or services from exchange members, your trade account is debited; if you sell products or services to other members, your account is credited 1.

References

  1. http://biztaxlaw.about.com/od/glossaryb/g/barterexchange.htm
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