MT103: What Is It, Why It Matters, and How to Get One
If you've ever sent or received a SWIFT payment (international bank transfer via the SWIFT network), you’ve probably come across the term "MT103." It’s a document issued by the sender’s bank, detailing essential information such as the sender, recipient, forex rate, and other crucial transfer details. In this article, we’ll break down what MT103 is, why it’s important, and how you can obtain it.
What is MT103?
MT103 is a standardized SWIFT message sent from the sender’s bank to the recipient’s bank during an international transfer. It acts as a formal receipt that includes the transaction details like your name, the recipient’s name, the amount, and currency. Your bank securely sends this document via the SWIFT network to the recipient’s bank. Once verified, the recipient's bank credits the account. You can request for MT103 document from your bank which will contain all necessary details about the transaction, like your name, the recipient’s information, the amount, currency, and SWIFT/BIC code.
Why do you need MT103?
While you may not necessarily need MT103 for every overseas SWIFT transaction, here’s why it is important:
Proof of Payment
MT103 acts like your receipt for an international transfer. If you're the sender, you can provide this to the recipient as proof that the payment has been made. If you're the receiver, you can request the MT103 to confirm that the payment is on its way.
Payment Tracking
MT103 enables easy payment tracking, giving you full visibility into the payment’s journey. If a payment gets delayed, for instance, at an intermediary bank, the MT103 allows your bank to trace and resolve the issue faster.
Standardization:
Thanks to its standardized format, MT103 ensures smooth and efficient communication between different banks, making international transfers less complex and more transparent.
MT103 SWIFT Message Format
An MT103 SWIFT message contains all the details necessary for processing a transfer. Here’s what a typical MT103 includes:
- Payment reference: Unique identifier for the transaction.
- Sender’s details: Name, address, and account info of the sender (remitter).
- Recipient’s details: Information about the person or company receiving the payment (beneficiary).
- Sending bank’s code
- Receiving bank’s code
- Amount and currency
- Transfer initiation date
- Fees: Who is paying them—the sender or the receiver?
All this information helps ensure that the transaction flows smoothly and gets where it needs to go.
How do I read a SWIFT Message in MT103?
As we mentioned, the format of the MT103 SWIFT message may vary across banks. However, every MT103 message will have certain tags using which you can decode the MT103 message. Here we will be describing all the mandatory tags that are present in every MT103 SWIFT message and a few optional ones:
Mandatory Tags
| Tag | Description | Explanation |
| 20 | Sender's reference | It is the unique reference number to identify the transaction. |
| 23B | Bank operation code | This tag shows the type of banking operation used for the transfer. Here are the options:CRED: A regular transfer. It’s the most common and affordable, but also the slowest.SPAY: A faster transfer through SWIFT Pay Service, but it may come with extra fees.SSTD: A balanced option with moderate speed and cost, using SWIFT Standard Service.SPRI: The fastest option through SWIFT Priority Service, but also the most expensive.This section helps to clarify the level of service chosen for the tranfer |
| 32A | Value date/currency/interbank settled amount | As the description suggests, it contains the date, currency and value of the transaction |
| 50A, F or K | Ordering customer | This includes the payer’s details including their name, address and more if required. |
| 59, 59A or F | Details of Charges | This field indicates who will cover the costs of the SWIFT transfer:BEN: The beneficiary covers all fees.OUR: The sender covers all fees.SHA: Fees are shared between the sender and the beneficiary.As an exporter or freelancer, always discuss and agree with your client in advance on who will cover the cost of the transfer. |
Optional Tags
Beyond the mandatory tags, MT103 SWIFT message may also contain a few optional tags including:
| Tag | Description | Explanation |
| 13C | Time Indication | This field shows timestamps for each phase of the transaction process:/SNDTIME/: Debit time at sending bank (CET)./RNCTIME/: Credit time at receiving bank (CET). |
| 26T | Transaction Type Code | The purpose of each transaction, such as salaries, pensions, or dividends. |
| 36 | Exchange Rate | The exchange rate at which the transfer was converted |
| 72 | Sender to Receiver Information | This tag captures any additional details which might be required |
How to Get an MT103 from Your Bank
When you make a SWIFT transfer, your bank automatically generates an MT103. However, you won’t receive this document unless you request it. Contact your bank to issue an MT103, although some banks may charge a fee, and it could take a few days to process.
If you’re awaiting a payment from a client, ask them to request the MT103 from their bank and share it with you.
Who can request MT103?
If you're sending a SWIFT transfer, you can request the MT103 from your bank. If you're receiving the payment, ask your client to request it from their bank and share it with you.
How to Track Your Payment Status using MT103
Delays in SWIFT payments are common, especially when intermediary banks are involved, which can be frustrating for both the sender and receiver. Here’s how you can track the status of your SWIFT payment:
SWIFT GPI: The SWIFT Global Payments Innovation (GPI) enables banks to offer real-time payment tracking. So if you have your MT103 or received the MT103 for your payer, you can contact your bank to track the payment using SWIFT GPI and share the updates with you whether it's sent, in progress, or received.
Bank Portals: Many banks now offer tracking tools via their online banking platforms. You can use your MT103 reference number to monitor your SWIFT payment’s progress. If you prefer, you can also reach out to your bank directly for updates.
Independent Tools: There are also certain third-party tools and platforms that allow you to check the status of your payment independently,
Make the most of your international payments with Skydo
While SWIFT remains a popular choice for cross-border transfers, it’s no secret that these transactions can be both costly and time-consuming. As a result, businesses are increasingly seeking alternatives.
That’s where platforms like Skydo come in. Skydo helps businesses in India receive international payments securely, seamlessly, and affordably. With free virtual accounts in major regions like the US, UK, Europe, Canada, Australia, and Singapore, businesses can receive payments through local transfers—bypassing hefty SWIFT fees, and long processing times. With real-time tracking, you can see exactly where your payment is at every stage—no need to hassle with getting an MT103 or jumping through hoops to track it.
Make the switch to Skydo today and experience a faster, more cost-effective way to receive international payments.
How to get MT103 from bank?
When you make a SWIFT transfer, your bank automatically generates an MT103. However, you won’t receive this document unless you request it. Contact your bank to issue an MT103, although some banks may charge a fee, and it could take a few days to process.
If you’re awaiting a payment from a client, ask them to request the MT103 from their bank and share it with you.
Is MT103 proof of payment?
Do banks charge for MT103?
Can MT103 be revoked?
