answersLogoWhite

0


Best Answer

Documents against payment (DP): The documents get registered with a bank and you get prompted to pay them to release the documents to free the goods.

Documents against acceptance (DA): You are asked to sign an agreement that states after 30 or 45 days the bank is allowed to deduct the amount from your bank account. You will receive the documents immediately after the agreement is signed.

The main difference is in order to receive the documents in a DP you have to pay immediately, for DA a written confirmation that you will allow the bank to deduct the money will release the documents.

DP's are more secure since the money is immediately deducted, DA's bear a certain risk, if at the time of deduction the amount is not on the bank account and the account can not go into minus, the process will be delayed and the bank will try to recover the necessary funds from the bank account owner.

User Avatar

Wiki User

14y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Difference between documents against acceptance and documents against payment?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Differnce between documents against acceptance and documents against payment?

DOP will mean that the instructions by an exporter to a bank that the documents attached to the draft for collection are deliverable only after his or her payment of the draft. DOA will mean that the instructions by an exporter to a bank that the documents attached to the draft for collection are deliverable after his or her acceptance of the goods.


What is the difference between an offer and acceptance?

difference between offer and acceptance?


What is the difference between offer and acceptance?

difference between offer and acceptance?


What is the difference between LC and DA?

DA mean documents against acceptance, where company give acceptance to pay their liabilities on due date, but he can pay remit the DA before its due date , but in case of Letter of Credit, UCP are not allowed to pay the LC liabilities before its due date. Thanks Anup Das


What is the difference between jews and Christians?

The acceptance, or non-acceptance, of Jesus as savior.


Difference between banker's acceptance and letter of credit?

differecences between banker's acceptance and letter of credit


What the difference between tolerance and acceptance?

tell me


What is the difference between tolerance and acceptance?

tell me


What is the main difference between Christians and Jews?

The acceptance, or non-acceptance, of Jesus as savior.


What is the difference between CAD payment and DP?

CAD means CASH AGAINST DOCUMENTS & DP means Documents Against Payment CAD can be , CAD AT SIGHT, CAD 30 DAYS, CAD 60 DAYS BUT DP IS ONLY DP AT SIGHT. THE IMPORTER HAS TO PAY THE AMOUNT TO GET THE DOCUMENTS WITHOUT ANY TERMS IN DP


What is the difference between schedule and annexure?

Annexure provides a list of documents and is a part of schedule and schedule provides the reference and description of the documents


What is the difference between database management and documents management systems?

differences between document management and database technology