If the beneficiary of the credit has some doubt about the ability of the DC opening bank to arrange reimbursement, he may request the opener to arrange for the DC to be “confirmed” by the advising bank.

If the opener agrees, the opening bank will ask the advising bank to add its “confirmation” to the DC.

Confirmation of a DC constitutes a definite undertaking by the advising bank to assume the obligations and liabilities of the opening bank under the credit.

All negotiations should be restricted to the confirming bank. If negotiations are effected through another bank the beneficiary will lose the rights and benefits of having a confirmed DC.

In return, the confirming bank receives a confirmation commission. This is collected from the beneficiary or is claimed from the issuing bank if so directed.

Confirmed DCs provide double protection to beneficiaries. A DC can sometimes be confirmed by a bank other than the advising bank. Despite this, the issuing bank must still use the advising bank for advising any amendments. (UCP 500 Art 11 (b)).