Revocable letter of credit(redirected from Revocable Letters of Credit)
Revocable letter of credit
Revocable Letter of Credit
A letter of credit that the granting bank or the letter holder (who is the buyer of some good) may cancel under some or any circumstances. This does not provide the seller with any extra assurance that he/she will be paid on time and in the correct amount. As a result they carry higher risk than irrevocable letters of credit.