Documents Against Payment

Documents Against Payment (D/P) in International Trade

Meaning of Documents Against Payment (d/p), according to the Dictionary of International Trade (Global Negotiator): Collection terms of payment that require the drawee to pay a draft prior to receiving the accompanying documents. Typically, such collections include a document that restricts possession or ownership, thereby forcing the drawee to honour the draft in order to obtain the relevant goods. While it is possible to protest for non-payment of sight drafts, the benefit is questionable, as the drawee will not have received the contract goods.