Who Is the Beneficiary of a Letter of Credit?
Who the beneficiary of a Letter of Credit is, what they are entitled to, and what they must do to be paid.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
The beneficiary is the party in whose favour the Letter of Credit is issued — usually the seller or exporter (UCP 600 Art. 2). It is entitled to payment when it makes a complying presentation, and is responsible for shipping and preparing documents that meet the credit's terms. Its name appears in MT700 field 59.
| Usually | Seller / exporter |
|---|---|
| MT700 | Field 59 |
| Paid when | Complying presentation |
Responsibilities
- Check the credit and request amendments.
- Ship on time.
- Prepare and present compliant documents.
- Accept or reject amendments (Art. 10).
Rights
- Payment on a complying presentation.
- Refusal notice that meets Art. 16.
- Not bound by amendments it has not accepted.
Sources
- ICC — UCP 600 (Uniform Customs and Practice for Documentary Credits)
- Swift — MT700 Issue of a Documentary Credit (category 7 standards)
General guidance, not legal advice. Your bank examines documents independently.
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