yes i agree normally hey are the terminology used under URR but in praticle sense clients do refer DP for sight document and DA for usance document
These terms refer to documentary collections that are normally subject to the Uniform Rules for Collections URR522. They are not documents processed under letters of credit.
DP means documents against payment (a sight payment) . In this case the documents are sent to the buyers bank who holds the documents until payment is receieved by that bank. Once payment is received, the bank releases the documents to the buyer.
DA means documents against acceptance. This is NOT a banker's acceptance and it is NOT a deferred payment undertaking by the bank. In this case, the documents are sent to the buyers bank who releases only the draft to be accepted by the buyer. Once the draft is accepted with a stated maturity date and returned to the buyers bank, the bank will release the documents to the buyer. The buyer has the obligation to make payment at maturity, but if they do not pay, the bank will NOT make payment to the seller.
I hope this helps you out.
It helped me much indeed, Thanks ever so much Sam.