What is an MT103? Examples, Elements, And Where to Find It

An MT103 is a comprehensive document issued after you make a SWIFT international transfer through your bank. It serves as proof of payment from your bank and provides the recipient with all transaction details, including applicable fees, and any currency exchange rates.

To explain this, let’s say that you initiated a transaction, such as a telegraphic transfer or wire transfer, your bank will prepare an MT103 document that includes all necessary details about this transaction. 

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.

In essence, an MT103 includes a detailed record of all the standardized information required for international transactions, can be used as confirmation of payment, and is recognized by institutions worldwide.

With the MT103, there is a standard 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
• 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
• Details of fees 
• Who pays the fee

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 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. 

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

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

The MT103 is important because it serves as proof of payment, much like a transaction receipt. Once a recipient bank receives the MT103, instructions are given to credit the relevant accounts with the appropriate funds, ensuring secure and reliable international telegraphic transfers. 

In addition, the MT103 provides comprehensive and transparent information that can reduce delays and frustrations, particularly with international transfers. It also simplifies payment tracking and offers visibility to all parties involved.

Although an MT103 is always generated for SWIFT transfers, banks do not automatically provide this document to customers. Customers need to request the MT103 from their bank if they require it.

Banks often charge a fee for this document, whereas alternatives to banks, like fintech companies, often offer this document for free upon request. 

The time it takes to receive the MT103 document also varies. Banks may take a few business days or more to retrieve and deliver the MT103 because it's not immediately formatted for customer viewing, so they need to process it first before making it available.

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

The MT103 is used for SWIFT payments. If your bank can't provide this document, it could be because the transaction isn't processed via the SWIFT network.