Discrepancy

Any respect in which presented documents fail to comply with the terms of a letter of credit. A misspelling, a date out of sequence, a description that differs from the credit’s wording.

Banks deal in documents, not goods, so a discrepancy entitles the issuing bank to refuse payment even where the shipment is perfect. A large share of first presentations are discrepant, which is why the credit’s wording should be checked when it is received rather than when documents are ready.