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International Trade vocabulary · Payment Methods and Letters of Credit

Discrepancy

Meaning in international trade, with examples

/dɪˈskrepənsi/nounCommon term

In international trade, discrepancy means: A difference between the documents presented and the terms of a letter of credit, or between the documents themselves, that gives the bank a reason to refuse payment.

In Turkish: rezerv, uyumsuzluk, tutarsızlık

How it is used

Banks find, raise or cite discrepancies; the seller may correct them, or the buyer may waive them. Typical examples are a late shipment date, a different goods description or a missing signature. Documents with discrepancies are called 'discrepant documents'.

Example sentences

  1. The bank found two discrepancies: the invoice amount and the port of loading.

  2. The buyer accepted the discrepancy, so the bank released the payment.

Common collocations

  • discrepancy fee
  • waive a discrepancy
  • notice of discrepancy
  • discrepant documents
  • letter of creditA bank's written promise to pay the seller a set amount, provided the seller presents documents that meet the exact conditions of the credit within the stated time.
  • issuing bankThe buyer's bank that opens a letter of credit and gives its own promise to pay if the seller presents complying documents.
  • UCP 600Uniform Customs and Practice for Documentary Credits: the ICC rules, in force since 2007, that most banks use for issuing and handling letters of credit.
  • beneficiaryThe person or company that will receive the money under a letter of credit, guarantee or bank transfer; in trade it is usually the exporter.

More terms: Payment Methods and Letters of Credit

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