Managing letter of credit discrepancies in export - import transactions

Nowadays many people used Letter of Credit as their payment guarantee when they do export or import transactions. While using L/C as payment guarantee, the documents are not always complied with the requirements which may cause late payment. Discrepancies often happen in export import transaction using L/C because of human error and less knowledge about the rules using Letter of Credit as payment guarantee. By understanding the rules using Letter of Credit it will give a benefit to exporter and importer in lowering cost because every discrepancy will charge discrepancy fee. There are some case studies about L/C?s discrepancies that may happen because of human error and less knowledge about L/C. The use of Letter of Credit is very helpful for international transactions. As the time goes by, there will be more people use L/C for their transactions. Therefore it is better to learn how to manage discrepancies that may occur during transactions because discrepancies can delay the transactions which caused financial loss.