Documentary collection, documents against acceptance (D/A)
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The importer gets the shipping documents by signing a promise to pay on a set later date.
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01 · In plain words
Your buyer signs a promise to pay later, and only then gets the papers for the goods
In a , the exporter's bank sends the shipping documents to the importer's bank, with instructions on when to hand them over and how to collect payment (US International Trade Administration).
Under , or D/A, the importer gets those documents by signing a promise to pay on a set future date. That promise is written on a , a payment order that falls due later. Signing it is called . Some call D/A "cash against acceptance" (US ITA).
So the exporter gives the importer time to pay. In return, the exporter holds a signed draft (US ITA). The banks pass the documents along and collect the money. They check that the documents appear as listed. They do not verify them, and they take no risk on the importer (US ITA; ICC, URC 522).
Who is involved
- The exporter, called the , hands the collection to its bank. The exporter also signs the draft as the .
- The exporter's bank, the , sends the documents abroad.
- A bank in the importer's country, the , receives them.
- The collecting bank that shows the documents to the importer is called the .
- The importer, called the , signs the draft and later pays it.
- If the exporter wishes, a representative, called a , can act for the exporter if the importer does not sign or pay.
02 · How it works
Ten steps take the deal from shipment to the exporter's bank account
Figure 1 · Interactive
A D/A collection, step by step
Read down the steps. The importer gets the goods at step 6 and pays at step 8.
Sources: US International Trade Administration, Trade Finance Guide, July 2022 (seven-step illustration, split here at acceptance and at maturity); ICC, URC 522 on the banks' duties; UK Bills of Exchange Act 1882, section 17 on acceptance.
03 · What it means for you
The exporter gives the buyer time and holds a signed promise, and the importer gets the goods before paying
Figure 2 · Interactive
What a D/A collection means for each side
Choose your side of the trade.
04 · Worked example
On a $1 million D/A draft at 90 days, holding the draft to its due date costs the exporter $15,383.33 in this example
This example uses round, made-up numbers. The exporter sells $1,000,000 of goods on D/A. The draft is payable 90 days after the importer sees it, and the documents take 15 days to reach the importer. Bank and courier fees total $800. Money costs the exporter 5.00% a year while it waits. Interest is counted on a 360-day year, the US money market convention (Federal Reserve).
The exporter has two choices. Wait 105 days for payment. Or, once the importer accepts, sell the signed draft to a bank to get cash early. The bank keeps a of 6.00% a year for the 90 days.
Figure 3 · Illustrative
Two ways to handle a $1,000,000 D/A draft at 90 days
Illustrative inputs. The cost of waiting is highlighted.
Made-up rates, worked out by our checking script. Real fees and rates vary by bank, country and deal.
05 · When to use it
D/A suits trusted buyers in stable markets, when goods go by sea
Good fit when
- You and your buyer have a well-established relationship, in a stable market (US ITA).
- Open account feels too risky for you, and your buyer will not accept a letter of credit (US ITA).
- You are willing to give your buyer time to pay, in return for a signed draft.
- The goods go by sea, and the documents control who can collect them (US ITA).
Another tool may suit better when
- You want to be paid before your buyer gets the documents. Look at a documentary collection, documents against payment (D/P).
- You cannot carry the risk on your buyer until the due date. Look at a usance letter of credit, where a bank promises to pay at the later date.
- The goods go by air or over land. Then the importer can receive the goods without paying (US ITA). Look at cash in advance or a sight letter of credit.
06 · Rules and a real case
A collection follows URC 522 when its instruction says so, and a court limited a bank's duty to what was agreed
When the collection instruction says so, the ICC's rules apply. They are the Uniform Rules for Collections, 1995 Revision (ICC). For a draft payable later, the instruction should say whether the documents are released against acceptance (D/A) or against payment, called (D/P) (ICC, URC 522).
The , Version 1.1, covers documents sent electronically (ICC).
The signed draft itself falls under the law on bills of exchange, for example the UK Bills of Exchange Act 1882 (section 17, section 54). See Bill of exchange and promissory note.
A real case. In M.D. Sivakumara v. People's Bank, an exporter sold Indian white refined crystal sugar to Golden Key Trading Company Ltd on D/A terms. The first shipment was due 45 days from the bill of lading date, and the second 20 days from it. The invoices were US$52,000 and US$97,637.50. Bank of India (New York) was the collecting bank, and People's Bank was the presenting bank. On both due dates, the buyer's account did not hold enough money to pay. The exporter went to court against the presenting bank. The court recorded that URC 522 applied, and held: "The obligation of the Presenting Bank is limited to what the parties have agreed." The Supreme Court of Sri Lanka dismissed the appeal with costs on March 26, 2026 (Supreme Court judgment).
Summary
D/A gives the buyer time to pay, backed only by the buyer's signed promise
The importer gets the documents, and the goods, by signing a draft that promises payment on a set date. The exporter is paid at maturity, if the importer pays. The banks move the papers and the money, but the risk on the buyer stays with the exporter. Use D/A with buyers you know, for goods shipped by sea.
Related guides: Documentary collections; The payment terms spectrum; Bills of exchange and promissory notes. Related cards: Documentary collection, documents against payment (D/P); Bill of exchange and promissory note; Letter of credit (usance, acceptance, deferred payment). Every term is in the Trade Finance Glossary.
Sources
- US International Trade Administration, Trade Finance Guide: A Quick Reference for US Exporters (2022 edition), documentary collections, July 2022. Supports: definition, the step flow, risks for each side, when collections fit, cost compared with letters of credit, air and overland shipments
- International Chamber of Commerce, URC 522 rules text, ICC Digital Library, 1995. Supports: the parties, presentation for acceptance, the banks' duties and advices, protest, case-of-need
- International Chamber of Commerce, URC 522, Uniform Rules for Collections, Including eURC Version 1.1, 1995. Supports: the rules a collection can follow
- International Chamber of Commerce, URC 522: ICC Uniform Rules for Collections, Supplement for Electronic Presentation (eURC), June 29, 2023. Supports: electronic presentation
- legislation.gov.uk (The National Archives), Bills of Exchange Act 1882, section 17, 1882. Supports: what acceptance is and how it is given
- legislation.gov.uk (The National Archives), Bills of Exchange Act 1882, section 54, 1882. Supports: the acceptor's promise to pay
- Board of Governors of the Federal Reserve System, Selected Interest Rates (Daily), H.15, September 29, 2026. Supports: the 360-day year in the worked example
- Supreme Court of Sri Lanka, M.D. Sivakumara v. People's Bank, SC/CHC/APPEAL/102/2018, March 26, 2026. Supports: the real case
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