Key Takeaway
An MT103 is a standard SWIFT message used to make international transfers, and it is recognized by international banks around the world. All banks can provide an MT103 after an international transfer is made. Furthermore, once payment is made using the instructions contained in an MT103, it is irrevocable.
Details included in an MT103 are payment instructions, the sender's and recipient's information, the amount transferred, and the fees.
What Is an MT103?
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.
Tip: Learn the difference between a telegraphic transfer and a wire transfer.
What Information Is on an MT103?
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
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.
How to Read the MT103
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.
Tip: Within the document, you will find details organized in specific fields called “tags”.
MT103 Mandatory Tags
Tag | Description | Explanation |
20 | Sender's reference | Unique identifier to reference the transaction. |
23B | Bank operation code | Indicates the general type of banking operation being performed. This includes:
|
32A | Value date/currency/interbank settled amount | Shown as date-currency-amount. For example, 250624USD2000 represents a payment made on June 25, 2024, in US dollars, totaling 2000. The date may differ slightly from your original transfer request due to bank processing times. |
50A, F or K | Ordering customer | The payer's details, usually the account, identifier code, name, and address. |
59, 59A or F | Beneficiary Customer | The payee’s details, usually the account, name, address and Identifier code. |
71A | Details of Charges | his field indicates who will cover the costs of the SWIFT transfer:
|
Tags 50 and 59 may use account numbers in BBAN format for domestic payments or IBAN format for international payments.
MT103 Optional Tags
Tag | Description | Explanation |
13C | Time Indication | This field indicates the times for processing the payment, such as
|
23E | Instruction Code | This field specifies an instruction, such as:
|
26T | Transaction Type Code | The purpose of each transaction, such as salaries, pensions, or dividends. |
33B | Currency/Instructed Amount | This field shows the amount requested by the customer. It's included when the sender's bank converts currency. |
36 | Exchange Rate | The conversion rate for the amount in field 33B. |
51A | Sending Institution | This field specifies the message’s sender. |
52A | Ordering Institution | The ordering customer's financial institution, if different from the sender. |
53A | Sender's Correspondent | This is where the sender will reimburse the receiver if needed. |
54A | Receiver's Correspondent | This is where the receiver can access the funds, either at their branch or another financial institution. |
55A | Third Reimbursement Institution | This is the receiver's branch, where funds are available through a different financial institution than stated in field 53A. |
56A | Intermediary Institution | The bank or financial institution through which the transaction must pass to reach the recipient's account. |
57A | Account With Institution | This indicates the bank that manages the account for the beneficiary customer. |
70 | Remittance Information | Transaction details or a reference to another message with information. |
71F | Sender's Charges | The currency and amount of transaction fees deducted by the sender and the previous banks in the transaction chain. |
71G | Receiver's Charges | The currency and amount of charges that the receiver will have to pay. |
72 | Sender to Receiver Information | This is a field for any additional information. |
77B | Regulatory Reporting | Codes for statutory and regulatory information required by authorities in the country of the Receiver (written as BENEFRES) or Sender (written as ORDERRES). |
Tags 50, 52, 53, 54, 55, 56, and 57 primarily use BICs (Business Identifier Codes) to identify the involved banks.
Why Is the MT103 Important?
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.
How to Find an MT103 Document?
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.
Note: If you have a business account with Statrys, you can request an MT103 via support@statrys.com or live chat for free. You'll normally get your MT103 within a few hours on business days. Alternatively, use the SWIFT real-time tracking on the Statrys dashboard for instant updates.
FAQs
What is an MT103 Document
An MT103 is a standardized SWIFT message that is used by banks and financial institutions to make international transfers between accounts.
How to use an MT103?
Who has to send an MT103?
Where to get an MT103?
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