What is Reciprocal Trade?

Reciprocal Trade is also known as barter trade, or
commercial barter trade or corporate trade. For
centuries, barter has been an effective way for
businesses to work together. It used to be “direct
trade” when people swapped one thing for another.
However, since not all direct trades are done of
equal value (not to mention the challenge of finding
someone who has what you need and wants what
you have), modern day barter has evolved
considerably to become a proven method of
increasing sales, conserving cash, moving inventory,
and making use of excess production capacity for
businesses around the world. All of this can be
done through a commercial trade exchange or
corporate barter company.

Businesses that decide to participate in barter become members of a trade
exchange or corporate barter company. In so doing, they earn trade credits
(instead of cash) that are deposited into their account. They then have the
ability to purchase goods and services from other members utilizing their trade
credits. The exchange plays an important role because they provide the
record-keeping, they maintain transaction records and broker services to
each member.

Since IRTA Members adhere to the IRTA Code of Ethics, businesses that
want to barter are assured that their trade credits are earned and spent within
a network that is committed to a high standard of business conduct.
Certified IRTA Members hold themselves to an even higher standard by
meeting requirements that prove the strength and sustainability of their
exchange networks.

It is important to note that there are other forms of reciprocal trade that are
not classified as barter. Some of these include complementary (or local)
currency organizations, LETS (Local Exchange Trading Systems) and many
other forms of alternative monetary systems to help local and regional economies.