For successful business with foreign countries, it is necessary to develop a functional system of foreign payment transactions. Through international payment transactions, goods, services and money are exchanged between residents of different countries and it is regulated by uniform regulations. The goal of international payment transactions is to facilitate international payments as well. The system can be successful only if its participants understand the way it works and when using the payment system follow the regulations related to it. The Croatian National Bank is in charge of organizing and conducting international payment transactions in the Republic of Croatia, and international payment transactions take place through payment instruments. One of the most important decisions to make in doing business abroad is which payment instrument to use. Instruments in international payment transactions are: international documentary letter of credit, bank transfer, documentary collection - goods collection, commercial credit letter, bill of exchange and check. Each of the foreign payment instruments, thanks to its characteristics, carries certain advantages and disadvantages for persons who use them in foreign business. To choose the instruments that will bring the greatest benefit to participants in international payment transactions, it is necessary to educate and understand the advantages and disadvantages of each payment instrument and to be transparent when using them in business.