International Payments

How many third parties are involved in a documents against payment collection?

A documents against payment collection transaction involves one or more third parties in the payment process (the collecting bank in the seller's country and the collecting or presenting bank in the buyer's country). The banks' involvement in a documents against payment collection transaction is limited to presenting the seller's draft to the buyer, withholding the title documents for the goods shipped to the buyer until the buyer has paid the seller's draft, and transferring the buyer's payment to the seller. The banks do not in any way guarantee the performance of the buyer unless separate arrangements have been made in this regard.

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