Articles Mr Old Man Payment Q&A PARTIAL PAYMENT ON DISCREPANT DOCUMENTS By Mr Old Man Posted on 2 weeks ago 2 min read 0 0 19 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Dear Mr. Old Man, The presenting bank submitted documents under a documentary credit to the issuing bank for payment. However, the documents were found to be discrepant, and the issuing bank rightfully refused them and notified the applicant. The applicant later informed the issuing bank that he was willing to pay only 50% of the claimed amount. In this case, does the issuing bank need to obtain the beneficiary’s consent before making the partial payment? Thank you, T.⸻ ANSWER Hi, When documents are discrepant, the issuing bank has the right to refuse them—even if the applicant is willing to accept the discrepancies. However, should the issuing bank decide to accept the applicant’s waiver and proceed with payment, it must honour the full amount claimed under the presentation. The issuing bank cannot unilaterally make a partial payment based solely on the applicant’s instructions. Any partial settlement must be agreed to by the beneficiary. Therefore, if the issuing bank intends to make a partial payment, it must first obtain the beneficiary’s consent—ideally through an authenticated SWIFT message from the presenting bank acting on the beneficiary’s behalf. Best regards, Mr. Old Man ⸻