Most documentary discrepancies that occur in a letter of credit transaction are:

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Documentary discrepancies in a letter of credit transaction are most commonly a result of incomplete or inconsistent information provided by the beneficiary or the issuing bank. These discrepancies can lead to delays in payment or rejection of the documents, but they are typically unintentional and can be resolved through negotiation and correction. While fraud and misrepresentation can occur in any financial transaction, they are not the most common cause of documentary discrepancies in letters of credit. Profit-motivated discrepancies are also rare, as the strict requirements of the letter of credit process make it difficult to manipulate for monetary gain. Banking errors are possible, but they are also uncommon and typically quickly resolved through the bank's internal processes.

Most Documentary Discrepancies That Occur in a Letter of Credit