Contract
Buyer and seller agree documentary collection and whether documents release against payment (D/P) or acceptance (D/A).
Procedures · Lifecycle guide
Documentary Collection Procedure
A typical D/P or D/A transaction from shipment to payment or acceptance.
Shipment
Seller ships the goods and prepares commercial/transport documents.
Collection instruction
Seller/principal gives documents and clear instructions to its remitting bank.
Remitting bank sends collection
The bank forwards the collection to a collecting/presenting bank in the buyer’s country.
Presentation to drawee
The presenting bank notifies/presents to the buyer/drawee according to instructions.
D/P or D/A action
D/P: payment is required before release under the instruction. D/A: acceptance of a future-due draft may allow release.
Documents released
The bank releases documents only according to the collection instruction and applicable rules.
Funds remitted / maturity tracked
D/P funds are remitted through the banks. For D/A, payment remains due later and buyer credit risk continues.
If buyer refuses
Banks follow instructions for non-payment/non-acceptance; the seller may face storage, return, resale, protest or legal decisions.
What can change from bank to bank?
The commercial objective may be similar while the bank’s internal route differs. Credit approval, collateral, compliance review, legal wording, message choice, fees and cut-off times can all vary. Always distinguish those bank-specific steps from the incorporated rules and the purpose of the SWIFT message.
Reviewed: September 2026Standards and bank policy can change.How MyGreed classifies proceduresOfficial-source directory
What kind of requirement is this?
Do not call every step “standard.”
Sets a common collection framework; it does not make banks guarantors.
Banks can refuse transactions, documents or countries they cannot handle.
The buyer can refuse payment/acceptance; seller must plan for the goods.
Electronic presentation requires appropriate rule, bank and technology capability.
Procedure check0 / 1 answered · 0 correct
Check 1
Under ordinary D/A, who normally carries the buyer’s future-payment risk after documents are released?