Payment Review

Payment Review is a systematic verification step in foreign trade transactions where the seller (or bank, risk control department) checks the buyer's payment terms, payment capacity, and payment records after receiving the buyer's order and before formally arranging production or shipment. Its core purpose is to assess the risk of foreign exchange collection and ensure the safety of payment. Use cases include: first order from a new customer, large orders, and transactions using open account (O/A) or documentary collection (D/P, D/A) rather than letters of credit. Precautions: it should be judged comprehensively in light of the buyer's country risk, bank creditworthiness, and historical payment performance; if abnormalities are found, advance payment, a letter of credit, or export credit insurance may be required. Unlike Order Review, which focuses on trade terms such as product specifications, price, and delivery time, Payment Review focuses specifically on payment security; compared with Credit Check, Payment Review focuses more on the payment path and terms of a specific order rather than the buyer's overall credit rating. Foreign trade practitioners should make Payment Review a mandatory checkpoint before order confirmation to avoid bad debts caused by blindly accepting orders.