Payment Inspection is a risk control step in foreign trade practice, referring to the seller's verification of payment amount, currency, remittance route, remitter name, remarks, and other elements after receiving payment from the buyer, to confirm whether the funds are consistent with the contract/proforma invoice/letter of credit terms. Use cases include: after T/T advance payment or balance payment is received, before document presentation under L/C, and after buyer payment under D/P or D/A. Precautions: verify whether the amount is sufficient (it may be short after deducting bank charges), whether the currency matches, whether the remitter is consistent with the contract buyer (to prevent compliance issues caused by third-party payment), and whether the remarks indicate the invoice number or contract number; if discrepancies are found, notify the buyer promptly and keep written records. Unlike Payment Advice, which is a payment notice sent by the buyer, Payment Inspection is actively verified by the seller; unlike Payment Confirmation, which focuses on bank confirmation that funds have been credited, Payment Inspection is more comprehensive, including review of payment compliance and contract consistency.
📝 Examples
1. The finance department has completed the order payment inspection and confirmed that the 30% advance payment paid by your company has been received in full, and the remitter name is consistent with the contract buyer. We will arrange production within three working days. (Note: After receiving the advance payment, the seller verifies the amount and remitter information, and starts production after confirmation.)
2. Under the letter of credit, we conducted an order payment inspection before document presentation and found that the amount paid by the issuing bank was USD 50 less than the invoice amount. Upon investigation, it was due to a deduction of cable charges, and we have contacted the buyer to make up the difference. (Note: The seller verifies the L/C payment amount before document presentation, discovers the short payment and seeks recovery, avoiding discrepancies or losses after presentation.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner