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Difference between documents against acceptance and documents against payment?
Wiki User
∙ 13y ago
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.
Wiki User
∙ 13y ago
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