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 the MT103 becomes essential. The MT103 is basically your proof of payment that you can use to confirm a transfer, track delays, or resolve a dispute. It shows all transfer details, including when and where the funds were sent. It’s usually used with SWIFT international payments. 

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 document that contains a message banks use to complete a SWIFT international transfer between one account to another. It is also referred to as an “MT103 Single Customer Credit Transfer.”

An MT103 can be used as proof of payment and is recognised by institutions worldwide. It includes a detailed record of all the standardised information banks used to make transfers and can provide the recipient with transaction details, including any applicable fees and currency exchange rates.

You can use the MT103 document

• To keep clear payment records: It gives you a detailed and organised record of your international transfer, so you know what was sent and when. This reduces the risk of disputes.  A common issue is when the amount received differs from the amount sent, often due to fees deducted by intermediary banks during the transaction. The MT103 can help you track this discrepancy.
• As proof of payment: The MT103 acts like an official receipt, confirming that your funds were sent. This can help if you need to resolve any disputes or keep track for auditing purposes.
• To track your payment: MT103 comes with a unique reference number, which banks can use to track and verify a payment's progress if delays or discrepancies occur.

Likewise, 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.

When you initiate an international 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 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.

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.

Banks don’t typically provide MT103 to customers unless specifically asked.

To get an MT103 document, request it directly from your bank or financial institution. Only the sending bank can generate and provide the official MT103. 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.

It depends on your financial institution. Some banks may charge a fee for MT103’s (typically USD 20-50). In contrast, fintech companies, international money transfer apps and other non-bank alternatives often provide the document at no cost upon request.

Once a SWIFT payment is initiated, an MT103 is generated. However, banks may take several business days to retrieve and deliver this document after you request it.

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.

Statrys is a licensed fintech company offering multi-currency business accounts designed for businesses with global operations. With Statrys, you can

• Hold funds in 11 major currencies.
• Send and relieve from 140+ countries
• Make local and SWIFT payments.
• Track transactions in real time.
• Competitive service fees, and foreign exchange rates

Statrys is primarily available for businesses registered in Hong Kong, Singapore, and the British Virgin Islands (BVI).

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 bank details (if applicable).
• Details of fees 
• Who pays the fee, which can be the sender, the receiver, or a shared arrangement between both.

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.

Tags 50 and 59 may use IBAN format if the accounts involved are in countries that use IBAN, e.g., most of Europe.

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. These include the followings: 

To track a payment using an MT103, you’ll need the transaction reference number. This number works like a tracking code. Once you have it, your bank can trace the path of the payment.

If your bank uses a real-time tracking system called SWIFT gpi, they can provide live updates on where the money is during its journey. If they don’t use SWIFT gpi, they may only be able to confirm that the payment was initiated, processed, arrived, or rejected, without showing its real-time location. 

Steps to track a payment using an MT103:

1. Get your MT103 document
2. Find the transaction reference number
   - Look at Field 20 (also known as Tag 20) or written as Sender Bank Reference
   - You may also see a Unique End-to-End Transaction Reference (UETR), which is a 36-character identifier, consisting of both alphabets and numbers.

1. Use the reference number to track the payment
   - Enter the number into your bank or financial institution’s tracking tool if available. Below is an example of payment status tracking tool from Deutsche Bank.

- If no tool is available, reach out to the banks. Keep the reference numbers ready.

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!

Need to track your payment? You can also do that in real time right in the app. No need to dig through documents searching for codes or details.