After going through the four key strategies to understand how cross border payments work, we can now take a closer look at the SWIFT MT messages. We will start with a basic SWIFT MT103 message. It is a message used in the case where sender and receiver have a direct account relationship. Only mandatory fields are provided as you can see that in the detailed specifications of the SWIFT MT103 message.
The picture below shows the main actors and how the messages flows from sender to receiver.
The table below contains information that is highlighted in the examples provided in the SWIFT Message Reference Guide. An additional column (comments) provides further explanation on the fields to make the things easy to understand.
I refer you to this page on the Field formatting rules and Character sets of SWIFT MT Messages. It is helpful to understand what 16x, 4!c and the format of the fields options mean.
Narratives and notes on the Basic SWIFT MT103 Message
There is more in this message than meets the eye. 🙂 The following narrative and notes allow to get a deeper understanding of the message content.
Narrative and note 1
With this SWIFT MT103 message, sender (CRESCHZZ80A) is asking receiver (BNPAFRPP) to debit sender’s account and credit beneficiary account. Note that the sender’s account is not specified in the message. So there are two possibilities :
- Sender has opened one single account with receiver in EUR currency or
- The preferred account should be used in case the sender has open many accounts with the receiver.
Narrative and note 2
There is no ordering institution (Tag 52a) in the SWIFT MT103 message. That means implicitly that the ordering customer is customer of the Sender.
Narrative and note 3
No correspondent is used neither on sender side (Tag 53A) nor on receiver side (Tag 54A) and No reimbursement party (Tags 56a and 57a) is indicated in the SWIFT MT103 message. It means
- there is a direct account relationship, in the currency of the transfer, between the Sender and the Receiver. Money will be taken from sender’s account and credited to the beneficiary.
- Beneficiary customer account (:59:/FR7630004008180001236749327) is hold by the receiver.
You may wonder: what does the guy mean? This part is really not easy to understand when you start. You will get a better understanding with the next examples. I promise!. So just come back to the blog and check the new articles.
Narrative and note 4
Details of charges (Tag 71A) is SHA. That means charges are shared between Ordering and beneficiary customer. Sender pays charges to ordering bank. Beneficiary pays to the receiving bank.
If you are interested in the sample SWIFT MT103 messages sent to SWIFT by the Sender (Credit Suisse) and received from SWIFT by the receiver (BNP PARIBAS), fill in the form below and submit. You will then receive a mail in your mailbox with the link to download the two sample files and get regular updates when new posts or videos are published.