Atlas Claims InsightsPublished 14 October 2026 · Reviewed 14 October 2026 · 5 min readKey takeaways
- Banks examine only the documents, which must comply with the credit terms on their face.
- Most rejections arise from small inconsistencies between documents.
- Under UCP 600, banks generally have up to five banking days after presentation to examine documents.
- A discrepancy does not end the deal: waivers, corrections and negotiation are often possible.
Letters of credit are meant to make payment certain. In practice, a large proportion of first presentations are found discrepant, and payment is delayed or refused.
How banks examine documents
Most credits are subject to the ICC’s Uniform Customs and Practice for Documentary Credits (UCP 600). Banks examine the documents alone, not the goods, and decide whether they comply on their face with the terms of the credit. Under UCP 600, a bank has a maximum of five banking days following the day of presentation to decide.
Common discrepancies
- Late shipment or late presentation.
- Inconsistent descriptions of the goods between documents.
- Missing signatures, endorsements or documents.
- Bills of lading that are claused or do not show shipment on board as required.
What to do if documents are rejected
- Check that the bank’s refusal notice was given in time and lists every discrepancy.
- Correct and re-present documents where time allows.
- Ask the buyer to waive the discrepancies; many will, if the goods are wanted.
- Negotiate directly with the buyer if the bank will not pay.
Prevention
Review the credit terms as soon as they are received, and ask for amendments to terms you cannot meet. A pre-presentation document check is far cheaper than a rejected presentation.
Quick answers
How long does a bank have to check L/C documents?
Under UCP 600, a maximum of five banking days following the day of presentation.
What happens if documents are discrepant?
The bank may refuse to honour, but the applicant can waive discrepancies, documents can sometimes be corrected, and the parties can negotiate.
Need help with a specific matter? Send us the documents for a free, confidential review, or message us on WhatsApp at any hour on +44 7429 535705. Start a case review.
This guide is general information about the law of England and Wales as at October 2026. It is not legal advice and may not cover your situation. Atlas Claims is not a law firm; for advice on your legal rights or on litigation, consult a qualified solicitor.
