Payment Confirmation

Payment Confirmation refers to a notice or document issued by the buyer or its bank to the seller, confirming that a certain payment has been made or arranged. In foreign trade, it is commonly used in settlement methods such as letters of credit (L/C), telegraphic transfer (T/T), and documentary collections. Usage scenarios include: after remitting funds, the buyer sends a payment confirmation so that the seller can prepare goods or release documents; under an L/C, the bank issues a payment confirmation indicating acceptance or payment. Note: Payment confirmation does not equal actual receipt of funds; the seller should verify the bank slip or account balance and avoid shipping goods based solely on the buyer's verbal or email confirmation. In L/C transactions, payment confirmation may refer to the issuing bank's payment undertaking for complying documents and should be distinguished from 'Payment Advice'. Compared with 'Payment Advice', Payment Confirmation emphasizes verification and acknowledgment of a payment that has occurred or been promised; compared with a 'bank remittance slip', Payment Confirmation can be issued by the bank or the buyer, whereas a remittance slip is a bank-issued proof of remittance.