Documents against payment

With D/P the seller ships first, then sends the documents through its bank to your bank, which hands them over only against payment. Unlike a letter of credit, no bank promises to pay: if you refuse, the seller still controls the goods, but they are sitting at your port. That is why Chinese suppliers rarely offer D/P to new buyers.

D/P is cheaper and simpler than an L/C. Do not confuse it with D/A (documents against acceptance), where documents are released once you accept a time draft and payment follows later. See how to pay Chinese suppliers.