In the case of pre-payment of LC whether in discounting or negotiation the banker can add a clause called with recourse or without recourse.
With recourse means if the drawee doesn't pay the banker can recoup the amount paid from the beneficiary. the charges will be less for with recourse payment
where as in the case of without recourse, the banks assume all responsibility and cannot claim the money that is paid to the beneficiary even if the drawee doesn't pay. Hence the charges will be high
As per UCP 600, only a nominated bank can pay with recourse. Both confirming & negotiating banks payment obligations are without recourse.