What Is an MT103? A Complete Guide to SWIFT Transactions

You have paid your overseas suppliers, but they claim they haven’t received the payment. Meanwhile, your bank confirms that the transaction was processed. Now, you’re left wondering: How do I prove to the suppliers that the payment has already been made?

This is where MT103 comes in. It’s a detailed record of your SWIFT payment, showing exactly when and where the funds were sent. Whether you need to confirm a transfer, track delays, or resolve a dispute, an MT103 provides the proof you need.

In this article, we will explain what the MT103 is, how it works, what information it provides, how to read its fields, and where to find it.

An MT103 (Message Type 103) is a standard international message used to complete a SWIFT international transfer between one account to another, typically when sending money to a foreign account. This type of transfer is also known as a Single Customer Credit Transfer. [1]

An MT103 includes a detailed record of all the standardised information required for international transactions, can be used as proof of payment, and is recognised by institutions worldwide.

It can also provide the recipient with all transaction details, including applicable fees and currency exchange rates.

How Does an MT103 Work?

When you initiate a transaction, such as a telegraphic transfer or wire transfer, your bank will prepare an MT103 document that includes all necessary payment details.

These details include but are not limited to:

• Your name
• Your recipient’s name
• Address
• Amount
• Currency, and
• SWIFT/BIC code.

Your bank securely sends this document through the SWIFT network, a dedicated messaging platform for financial institutions.

The beneficiary's bank receives the MT103, verifies the information, and upon confirmation, credits the recipient’s account with the transferred funds, deducting fees as applicable.

Why Is MT103s Important?

The MT103 is important because of the following reasons.

• It ensures clear payment records: The MT103 provides a structured record of an international transfer, ensuring that all payment details are clearly documented. This reduces the risk of errors and disputes.
• It serves as proof of payment: The MT103 serves as a formal confirmation of a financial transaction, similar to a receipt. It provides clear documentation that funds have been sent, which can be used for dispute resolution or auditing.
• It helps trace payments: MT103 comes with a unique reference number, which banks can use to track and verify a payment's progress if delays or discrepancies occur.

MT103 vs MT202: What’s the Difference

MT103 and MT202 are both SWIFT message formats used in international payments, but they serve different purposes.

• MT103 is used for customer transactions, such as sending or receiving international payments.
• MT202 is used to transfer funds between banks and does not involve individual customers.

As a customer, you will primarily be dealing with MT103 messages when sending or receiving international payments. MT202 messages are used internally by banks to transfer funds among themselves, so they do not concern individual customers.

The table below summarises the differences between MT103 and MT202.

How Long Does It Take To Get an MT103 Document?

Once a SWIFT payment is initiated, an MT103 is generated. However, banks may take a few business days to retrieve and provide this document to customers.

Some non-bank alternatives, such as neobanks or fintech companies, may offer quicker access to the MT103—sometimes providing it within a day or even a few hours, depending on their operational policies.

For Statrys clients, the MT103 document can be downloaded directly from our platform once your payment has been processed. There is no need to submit a request or wait. 

If you are transferring funds using SWIFT payments, here are common scenarios where you would need an MT103:

• Proof of Payment or Refund for Suppliers or Clients: The MT103 serves as official proof when you send money internationally. This is particularly important for businesses that need to provide evidence of payments made to suppliers or refunds issued to clients. Your vendors may also require this for reconciliation purposes.
• Verification of Incoming Payments or Refunds: If you are expecting a payment from a client or a refund from a supplier, you can request an MT103. This document confirms that the transfer has been initiated and provides details about the transaction.
• Dispute Resolution: In cases of payment issues, such as a delayed transfer or discrepancies in amounts, the MT103 can assist you in investigating and resolving these problems. A common issue is when the amount received differs from the amount sent, often due to fees deducted by banks during the transaction. The MT103 can help you track this discrepancy.

The MT103 adheres to a standardised format that includes specific information to ensure the validity of the document.

This information includes the sender and recipient's information, the payment amount, and any additional information or instructions. It's important that the message is accurate and complete to ensure the payment processes correctly.

Here is the common information included in an MT103:

• Payment reference, which is a unique identifier for the transaction.
• Name, address, and account details of the individual or company sending the money. The sender may be called the remitter or the ordering customer.
• Name, address, and account details of the individual or company receiving the money. The receiver is called the beneficiary.
• The sending bank’s code 
• The receiving bank’s code
• Settlement date
• The amount of money being sent
• The currency in which the money is being sent
• The date the transfer was initiated
• The payment route between the banks
• Intermediary banks (if applicable).
• Details of fees 
• Who pays the fee, which can be the sender, the receiver, or a shared arrangement between both.

Example of MT103

The appearance of an MT103 that the customer gets after the request can vary by bank, but it must include a SWIFT payment message that provides tracking information for the payment destination.

Here's an example of what an MT103 might look like.

The format of MT103 documents can differ from one bank to another. You might find some MT103 documents straightforward to read, while others use predominantly banking abbreviations.

To help you understand them better, here is a simplified breakdown of the references and abbreviations you may find on MT103 documents. [2]

MT103 Mandatory Tags

Tags 50 and 59 may use account numbers in BBAN format for domestic payments or IBAN format for international payments.

MT103 Optional Tags

Optional tags are fields that the sender can choose to add. They offer extra information, but not including them does not hinder the processing of the transaction.

Processing & Instruction Codes

• 13C – Time Indication: Specifies processing times. Example: /SNDTIME/ (debit time at the sender’s bank) or /RNCTIME/ (credit time at the recipient’s bank).
• 23E – Instruction Code: Specifies special processing instructions, such as /CHQB/ (pay by cheque), /CORT/ (corporate trade payment), or /SDVA/ (same-day processing).

Currency & Exchange Details

• 26T – Transaction Type Code: Indicates the purpose (e.g., salary, pension, dividend).
• 33B – Instructed Amount: If included, shows the amount requested by the customer before any conversion or deductions.
• 36 – Exchange Rate: The currency conversion rate applied.

Bank & Intermediary Details

• 51A – Sending Institution: Identifies the sender’s bank.
• 52A – Ordering Institution: If different from the sender’s bank.
• 53A – Sender's Correspondent: The bank where the sender reimburses the receiver.
• 54A – Receiver's Correspondent: The bank where the recipient can access funds.
• 55A – Additional Reimbursement Institution: Additional bank involved in processing the transfer.
• 56A – Intermediary Institution: A middle bank that helps process the payment.
• 57A – Account With Institution: The final bank managing the recipient’s account.

Payment & Fee Breakdown

• 70 – Remittance Information: Notes or reference details for the recipient.
• 71F – Sender’s Charges: Fees deducted by the sender’s bank.
• 71G – Receiver’s Charges: Fees deducted by the recipient’s bank.
• 72 – Sender to Receiver Information: Additional messages between banks.
• 77B – Regulatory Reporting: Compliance codes for banking authorities.

Tags 50, 52, 53, 54, 55, 56, and 57 primarily use BICs (Business Identifier Codes) to identify the involved banks.

You can request an MT103 document from your bank or financial institution. Some banks allow requests through online banking, while others require contacting customer support.

Below is an example of what a request form for an MT103 might look like. Please note that this can vary from bank to bank.

Do You Need to Pay for MT103?

It depends on your financial institution. Some banks may charge a fee for MT103’s (typically USD 20-50). In contrast, fintech companies, such as international money transfer apps and other non-bank alternatives, often provide the document for free upon request.

With Statrys, you don't have to wait for your MT103.

Once your payment is completed, simply log into your account and download the 'Transfer Confirmation' or 'MT103 Document' for free, whenever you need it.

Quick, easy, and completely free!