If you regularly make international payments, you’ve likely encountered the term MT103. You may have seen it on your financial institution’s payment platform, or perhaps you sent money to a supplier, and they requested an MT103. In this article, we’ll explain everything you need to know about MT103s, including examples and a breakdown of what’s included in an MT103 SWIFT message.
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What is an MT103?
An MT103 is a message used to make a single payment to a specific person or company on the SWIFT network. It’s a standard messaging format that banks use to process these payments. While it is primarily used for international wire transfers, it can also be used for domestic transfers.
The message is created by a financial institution when payments are initiated on the SWIFT network and is formatted so that SWIFT member institutions can quickly understand and process the payments.
MT: Stands for Message Type. SWIFT messages are categorised into different types based on their purpose. "MT" is the prefix used for all SWIFT messages, indicating that it’s a specific type of message format.
103: The number "103" refers to the specific type of message within the broader "MT" category. In this case, "103" denotes a single customer credit transfer. This is a message used for transferring funds from one customer to another, typically between different banks, and it involves a straightforward, single payment to a single beneficiary.
How To Get an MT103 Copy?
If you need a copy of the MT103 message for a transaction dispatched via the SWIFT network, your financial institution can provide it. For Rutland FX customers, you can log into your account, search for the payment reference number, and click through to view the payment details. The MT103 message will be displayed, and you can copy it to provide to your payee. This ensures transparency and allows the payee to verify the transaction with their receiving bank. An example of this is in the image found at the top of this page.
Detailed Structure of an MT103 Message
An MT103 message typically includes around 12 or more fields, each containing specific information relating to the transaction. These fields enhance transparency and efficiency in international payments by organising data in a structured format. Here is a breakdown of the key fields in an MT103 message and what they signify:
This unique number is generated by the financial institution to identify the transaction.
Indicates the type of operation, such as “CRED” for a credit transfer with no specific SWIFT service level.
This field is divided into three subfields: the value date (YYMMDD), the currency code (e.g., “USD” for US Dollars), and the interbank settled amount.
10,000 US Dollars were sent with a value date of May 3, 2024.
Represents the original amount of currency dispatched before any intermediary bank fees are deducted.
Contains details about the person or company’s name and address who is initiating the payment.
The SWIFT code of the sender’s bank.
Details about the bank that acts on behalf of the sender’s bank.
Information about the bank that acts on behalf of the receiving bank.
Details about the intermediary bank that processes the transaction.
The SWIFT code of the beneficiary’s bank.
The account number of the beneficiary receiving the payment.
A reference selected by the sender, such as an invoice number.
Specifies how the charges are handled: “BEN” (beneficiary), “OUR” (sender), or “SHA” (shared).
Any additional information or instructions from the sender to the receiver.
Tracing Delayed Payments With an MT103
The MT103 message can be used as proof of payment and as a tool to trace payments within the SWIFT network. Sometimes, payments can be delayed within the SWIFT network, and the MT103 can help quickly identify where the payment is and why it is delayed. Delays can occur for many reasons, such as compliance checks, misspelled account names, or incorrect bank details. By providing your bank with the MT103, they can locate the funds and either apply them to your account more quickly or explain why the payment is delayed. For SWIFT gpi-enabled payments, a UETR number can also be used for tracking.
In summary, MT103 messages are generated for international payments on the SWIFT network, making payment processing fast, transparent, and traceable. They also serve as proof of payment, allowing you to provide your recipient with a reliable record of the transaction. Understanding how to access and use an MT103 can help you manage your international payments more effectively, ensuring that your funds reach their destination without issues.
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