What are the MT103 fields and what do they mean? Structure, Sender’s & Receiver’s Bank Data, and Charge Details in SWIFT Messages

Table of Contents:

1. Introduction
2. What Are MT103 Fields and What Do They Mean?
3. What is the Transaction Reference Number in MT103?
4. What Information is Included in the MT103 Sender’s Bank Field?
5. How Do I Read the Remittance Information in MT103?
6. What is the MT103 ‘Details of Charges’ Field?
7. How Do I Find the Receiving Bank Details in MT103?
8. MT103 Breakdown and Field Interpretation
9. Common FAQs
10. Conclusion

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Introduction

Imagine this scenario: You’ve just made an international payment, transferring funds to a business partner overseas. You receive a confirmation email from your bank with a message labeled “MT103.” You’re excited, but a little confused. What does MT103 mean, and what is the significance of all the fields and data it contains? What are the details behind the transaction that you need to understand?

International money transfers often involve a complex web of data, and the MT103 form is one of the key elements in this web. When you send money abroad, your bank uses the SWIFT network to transmit payment instructions securely. The MT103 message is the standard format used for customer credit transfers. Each MT103 message contains several fields that convey critical information, including details about the sender, recipient, transaction, and charges.

In this post, we will break down the MT103 fields, explain their meanings, and provide a clear understanding of how to interpret them. By the end of this article, you’ll know exactly what information each field holds and how you can use it to track and manage international payments effectively.

What Are MT103 Fields and What Do They Mean?

MT103 fields form the skeleton of a SWIFT payment message. They are a series of standardized data fields used by financial institutions to transmit international payments securely. Each field serves a unique purpose and conveys specific details about the payment.

Think of MT103 fields as a collection of important building blocks of a payment instruction. These blocks contain information about who is sending the money, who is receiving it, how much is being sent, and how the payment is being processed. Let’s break down these fields:

1. Field 20 (Transaction Reference Number): This field contains the unique identifier for the transaction. It’s like a tracking number that ensures the payment can be traced through the SWIFT network. The transaction reference number helps both the sender and receiver confirm the transaction’s status.
2. Field 32A (Value Date, Currency, and Amount): Here, you’ll find the value date, the currency, and the amount of the payment. The value date tells the recipient when they can expect the funds to be available in their account. The currency field specifies the type of money being transferred (e.g., USD, EUR), and the amount indicates how much is being sent.
3. Field 50A (Ordering Customer): This field contains details about the person or business sending the money. It typically includes the name and address of the sender. The field may also include account numbers, depending on the payment instructions.
4. Field 59 (Beneficiary): This field holds the details of the recipient or beneficiary. It typically includes the recipient’s name, account number, and address. This field ensures that the payment reaches the correct party.
5. Field 71A (Details of Charges): One of the more crucial fields, it outlines who will bear the charges for the transfer—whether it is the sender, the receiver, or shared between the two parties. It specifies whether the payment is “OUR,” “BEN,” or “SHA” (Sender, Beneficiary, or Shared) with regard to who will pay the transaction charges.

These are just some of the important fields in an MT103 message. The MT103 message is highly structured, which makes it easy for financial institutions to process international payments efficiently and accurately.

What is the Transaction Reference Number in MT103?

The Transaction Reference Number (TRN) is one of the most important identifiers in an MT103 message. It acts as a unique reference for the transaction and ensures that both the sender and recipient can track and trace the payment. In simple terms, it’s the digital equivalent of a receipt number for your international transfer.

Why is it essential to have a TRN? Imagine that there’s a problem with the transfer—perhaps the funds haven’t arrived, or there’s an issue with the payment amount. The Transaction Reference Number allows banks to easily locate the specific transaction and investigate the issue. This is particularly useful in situations where a transfer is delayed or requires clarification.

When you receive an MT103 message, the TRN will be prominently displayed, often in Field 20. This reference number is usually long and contains a combination of letters and numbers, but it’s unique to your specific transaction.

Example:
Let’s say you make an international payment, and the TRN provided is 1234567890ABCD. With this number, your bank can track the entire payment process from initiation to completion.

What Information is Included in the MT103 Sender’s Bank Field?

The MT103 message includes information about the sender’s bank in several key fields, with Field 52 and Field 53 being the most prominent. These fields contain the SWIFT/BIC code of the sender’s bank, along with its name and address.

Why does this matter? The sender’s bank information ensures that the payment is properly routed through the financial system. When you send money, your bank needs to communicate with the recipient’s bank, and this information is essential for that communication to happen seamlessly.

In Field 52, the ordering institution’s SWIFT/BIC code is listed. This is a unique code that identifies the sender’s bank. It’s crucial for ensuring that the payment reaches the correct bank, as SWIFT codes are used globally to identify financial institutions.

In Field 53, the sender’s account number or other banking details may be listed, providing further clarification on which account the payment is coming from.

How Do I Read the Remittance Information in MT103?

The remittance information in MT103 typically appears in Field 70, and it includes a description or reference for the payment. This information is extremely valuable for both the sender and recipient because it clarifies the purpose of the payment.

What might you find here? Remittance information can include things like invoice numbers, payment references, or even short descriptions of why the payment is being made. It’s essentially the “memo” or “note” that accompanies the payment, providing context for both the payer and payee.

For example, if you’re paying for a business invoice, the remittance information might read, “Payment for Invoice #12345.” This helps the receiver easily match the payment with the correct invoice or business transaction.

Example:
You’re sending $500 for a software development service. The remittance information could be “Payment for Development Services, Invoice #56789.”

What is the MT103 ‘Details of Charges’ Field?

The Details of Charges field, found in Field 71A, is another vital section of the MT103 message. This field specifies how the transaction fees will be handled. It is divided into three possible options:

• OUR: The sender agrees to pay all the transaction fees.
• BEN: The recipient will bear all the charges.
• SHA: The charges are shared equally between the sender and the receiver.

Why is this important? Understanding the details of charges helps both parties clarify who will bear the cost of the transaction. This can prevent disputes later on, especially if the payment amount seems smaller than expected due to unaccounted charges.

Example:
You’re sending money overseas, and the SWIFT message includes SHA—meaning the charges are shared between you and the recipient. This ensures both parties are clear about who is responsible for paying fees.

How Do I Find the Receiving Bank Details in MT103?

The receiving bank details can typically be found in Field 57 (for the beneficiary’s bank). This field provides the SWIFT/BIC code of the recipient’s bank, ensuring that the payment reaches the correct institution.

In Field 58, additional information about the beneficiary’s bank might be included, such as the name and address of the bank. This helps ensure that the payment is routed correctly through the financial network.

MT103 Breakdown and Field Interpretation

Let’s summarize and interpret the MT103 fields in a table for quick reference:

Field	Description
Field 20	Transaction Reference Number (TRN)
Field 32A	Value Date, Currency, and Amount
Field 50A	Ordering Customer (Sender’s Information)
Field 59	Beneficiary (Receiver’s Information)
Field 71A	Details of Charges (Our, Beneficiary, Shared)
Field 57	Receiving Bank’s SWIFT/BIC Code
Field 70	Remittance Information (Purpose/Reference of Payment)

Common FAQs

1. What is MT103? MT103 is a SWIFT message used for international customer credit transfers. It contains the payment details for the sender and recipient.
2. What is a Transaction Reference Number (TRN)? The TRN is a unique identifier assigned to each transaction, used to track and reference the payment.
3. What is included in the MT103 sender’s bank field? The sender’s bank field contains the SWIFT/BIC code, account number, and possibly the address of the sender’s bank.
4. How do I interpret remittance information in MT103? Field 70 contains the remittance information, which is a description of the payment purpose or reference.
5. What does the Details of Charges field mean? This field indicates who will pay the transaction fees: the sender (OUR), the receiver (BEN), or shared (SHA).
6. How can I find the receiving bank details in MT103? The receiving bank’s details are typically found in Fields 57 and 58, which contain the bank’s SWIFT/BIC code and its address.

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Conclusion

Understanding the MT103 message and its fields is crucial for anyone involved in international money transfers. Whether you’re a business or an individual, knowing how to read and interpret these fields is beneficial. It can help you track payments. You can also resolve issues faster. By understanding the MT103 fields, you can ensure your payments are processed correctly, avoiding confusion and delays.