are back to back letters of credit irrevocable 
typically both letters of credit are irrevocable letters of credit each letter can t be canceled or modified without all participants explicit agreement amendments can be complicated with a back to back letter of credit situation as the second letter depends on the first 3the bottom linethe term back to back letter of credit describes a transaction involving two separate letters of credit issued by banks on behalf of clients these are often used to finance international transactions by companies that want to avoid the risk of doing business with an unknown trading partner relying on this process while engaged in international trade can offer benefits and disadvantages particularly if the letters are not structured well consult with a financial professional or your banker to discuss the potential risks and rewards of a back to back letter of credit 