kind of payment for products that the related documents of the transferring title to the products won’t be accessible for the customer until he/she pays the price of the exchange or draft issued against him.

An agreement under which an exporter directs the presenting bank to hand over shipping and title documents (see the document of title ) to the importer only as long as the importer completely pays the corresponding bill of exchange or draft. It is also called cash against documents.

After the products are shipped, the exporter sends the sight draft to the clearing bank, along with documents necessary for the importer/buyer to take the products from customs. The purchaser has to settle the payment with the bank before the documents are published and he can take delivery of the merchandise. If the customer fails or refuses to cover the exporter has the right to recover the products and resell them.

Documents against payment (D/P) is a payment method in which the seller releases the documents required for the delivery of goods or services only after the buyer has made payment. D/P is often used in international trade as a way to protect the seller’s interests and ensure that payment is received before the goods or services are delivered.

In the context of Amazon, D/P may be used in a variety of situations, such as when a buyer is making a purchase from a third-party seller on the Amazon marketplace or when a buyer is purchasing goods or services directly from Amazon. In either case, the seller may choose to use D/P as a way to protect their interests and ensure that payment is received before the goods or services are delivered.

There are a few key advantages to using D/P as a payment method. One of the main advantages is that it provides a level of security and protection for the seller. By requiring payment before releasing the documents required for delivery, the seller can ensure that they will receive payment for the goods or services being purchased. This can help to reduce the risk of nonpayment or fraud.

Another advantage of D/P is that it can help to facilitate international trade by providing a guarantee to the seller that payment will be received. This can be especially important in situations where the buyer and seller are located in different countries and may not have a long-standing relationship. By using D/P, sellers can protect their interests and minimize the risk of nonpayment or fraud.

There are also a few potential drawbacks to using D/P as a payment method. One of the main drawbacks is that it may require the use of a third party, such as a bank or financial institution, which can add additional costs and complexity to the transaction. Additionally, if the terms of the agreement are not fulfilled, the seller may need to go through a dispute resolution process to resolve the issue, which can be time-consuming and costly.

In summary, documents against payment (D/P) is a payment method in which the seller releases the documents required for the delivery of goods or services only after the buyer has made payment. D/P is often used in international trade as a way to protect the seller’s interests and ensure that payment is received before the goods or services are delivered. In the context of Amazon, D/P may be used in a variety of situations, such as when a buyer is making a purchase from a third-party seller on the Amazon marketplace or when a buyer is purchasing goods or services directly from Amazon. There are a few key advantages to using D/P as a payment method, including the ability to provide security and protection for the seller and the ability to facilitate international trade by providing a guarantee to the seller that payment will be received. However, there are also some potential drawbacks to using D/P, such as the added costs and complexity of using a third party and the potential for disputes if the terms of the agreement are not fulfilled.