Payment Right

"Payment Right" is not a standard term in international trade (such as those defined in Incoterms or UCP600). It generally refers to the legal or contractual right of a party (e.g., seller, exporter, or factor) to demand payment for an order from the buyer under a specific transaction arrangement. It is commonly seen in supply chain finance, factoring, forfaiting, or letter of credit transactions. For example, after the seller assigns receivables to a bank, the bank obtains the right to payment from the buyer. Usage scenarios include: in export factoring, the bank, after buying out the receivables, asserts payment from the importer; or when buyer and seller agree on "cash on delivery," the seller has the right to demand payment after delivery. Note: This right may be limited by contract terms (e.g., quality objections, acceptance conditions), and it should be distinguished from "payment obligation" (buyer's responsibility) and "right to receive payment" (usually referring to the seller). Unlike "Documents against Payment" (D/P), which is a bank's condition for releasing documents, payment right focuses more on the legal claim. Trade practitioners should clarify the specific wording of this right in the contract to avoid confusion with payment methods.