Letter of Credit Cost Calculator: Estimate Bank Fees and Commissions
Enter your amount, dates and bank fee assumptions to see an illustrative breakdown of Letter of Credit charges and who usually pays each one.
Estimated charges
| Charge | How | Usually paid by | Amount |
|---|---|---|---|
| Issuance commission | 1% p.a. × 1 quarter(s), min 100 | Applicant (usually) | USD 250.00 |
| Advising fee | Flat | As agreed (71D) | USD 100.00 |
| Amendment fees | 1 × 75 | As agreed (71D) | USD 75.00 |
| Courier, SWIFT and handling | Flat | As agreed (71D) | USD 60.00 |
| Total (0.49% of the LC amount) | USD 485.00 | ||
Commissions are calculated per started 90-day period over validity plus usance. Who actually pays each charge depends on field 71D and your contract.
Discrepancy fees and amendments are the costs you can avoid.
Review your Letter of Credit before shipping, and check documents before presenting.
Upload your LCWhat drives Letter of Credit costs
The issuing bank charges the applicant a commission for its payment promise, usually a percentage per period with a minimum. A confirming bank charges the beneficiary for adding its own promise, priced on the issuing bank's and country's risk. Flat fees cover advising, amendments, discrepant presentations, courier and SWIFT messages. Under a usance credit, a seller who wants cash early pays discount interest.
Read letter of credit costs, who pays LC charges and LC payment terms.
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