An MT103 (Message Type 103) is a payment message used on the SWIFT (Society for Worldwide Interbank Financial Telecommunication) payment network. It acts as a proof of payment document which can be provided by any bank or payments institution sending money through the SWIFT network.
If you make cross border payments for personal or business purposes, you may have been asked by a beneficiary to provide an MT103 as proof of payment.
An MT103 includes all payment details such as date, currency, amount, charges and sender and recipient information. Each bank and financial institution that makes payments via SWIFT will have an MT103 for every payment.
When do I need an MT103?
You may be required to produce an MT103 as proof of payment in the event of a dispute over a transfer. Because they show the route of the money transfer between banks, MT103 is also great for tracing cross-border payments which are missing or delayed in the international banking system.
MT103 documents are normally not provided automatically by banks each time one makes an international transfer. They can, however, be produced when requested but note that banks can often charge a fee for the effort.
What are MT103 fields and what do they refer to?
Below are the fields of an MT103 message. Each field corresponds to a detail about the particular payment i.e the value date and currency.
|:20||Transaction Reference Number|
|:23B||Bank Operation code|
|:32A||Value Date/Currency/Interbank Settled|
|:33B||Currency/Original Ordered Amount|
|:50A, F & K||Ordering Customer (Payer)|
|:52A or D||Ordering Institution (Payers Bank)|
|:53A, B or D||Senders Correspondent (Bank)|
|:54A, C or D||Receiver’s Correspondent (Bank)|
|:56A, C or D||Intermediary (Bank)|
|:57A, B, C, or D||Account with Institution (Recipient’s Bank)|
|:59 or 59A||Beneficiary|
|:70||Remittance Information (Payment Reference)|
|:71A||Details of Charges (BEN/OUR/SHA)|
|:72||Sender to Receiver Information|
What are the benefits of using an MT103?
Payment confirmations are necessary to facilitate the smooth flow of funds around the world.
The relationship between a buyer and seller can be strained when there is a problem with a payment. Confirmation that a payment has arrived is vital for a business in maintaining a strong supply chain. Without this, a delay in service or goods delivery can negatively impact trade.
In a nutshell, An MT103 gives greater transparency and control of a payment
- It gives you confirmation that your payment has been sent to the beneficiary
- Your vendors or suppliers have proof that the payment was sent for their own reconciliation purposes.
- It gives complete visibility to the status of payment. This is especially important if there is a delay at a particular stage in the payment journey i.e., held up in an intermediary bank.
How do I request an MT103?
After you have made an international payment you can request your bank or payments company to provide an MT103 for you.
The process may vary by institution, but it could take days for banks to provide the documentation. As previously stated, they may also charge a fee, so please check before ordering your documentation.
As a Fexco customer, you will not be charged any fees for an MT103. Our payment specialist will also provide the documentation within hours when required.
Making an International Payment with Fexco
Fexco offers better-than-bank rates on international payments for business & personal money transfers, giving you access to live quotes and dedicated account managers.
With no hidden fees and 100% transparency, you’ll know how much your payment will cost to process, and how much your beneficiary will receive.
Fexco’s validation tool also ensures bank details are correct before entering the international banking system, making sure payments are delivered on time, every time.
If you require an MT103, our payments specialist will provide the necessary documentation free of charge and without delay. You can either contact your relationship manager directly or email our support team at firstname.lastname@example.org
Sign up today or talk to our payments team on 0800 840 2887