Letter of Credit Discrepancy Charges: When Banks Apply Fees
Why banks charge discrepancy fees under a Letter of Credit, who pays them and published examples.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
A discrepancy charge is a fee a bank deducts when documents presented under a Letter of Credit contain discrepancies. It is usually set in the credit (often field 47A or 71D) and charged to the beneficiary from the payment. Published bank tariffs show fees of roughly US$75–100 per discrepant presentation, plus delays and extra handling costs.
| Usually paid by | Beneficiary (deducted from proceeds) |
|---|---|
| Where stated | Field 47A or 71D |
| Published examples | US$75–US$100 per discrepant set (bank tariffs) |
Published examples
Charges vary by bank, currency and transaction; check the current tariff of the banks in your credit.
- BNP Paribas Malaysia: US$100 per discrepant document set.
- MauBank, Mauritius: US$75.
- OCBC Indonesia: US$75.
- UOB Singapore: S$100.
The real cost is time
Beyond the fee, a discrepancy can delay payment while the applicant decides on a waiver, and may weaken the protection of the credit.
Sources
- ICC — UCP 600 (Uniform Customs and Practice for Documentary Credits)
- ICC Academy — avoiding Letter of Credit discrepancies
General guidance, not legal advice. Your bank examines documents independently.
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