What’s an MT103 and Why Does It Matter for Cross-Border Payments?
An MT103 might sound like some secret code, but it's actually a standardized SWIFT payment message that's crucial for international wires (aka cross-border payments).
Why Are MT103s So Important?
If you haven’t already checked out our deep dive into SWIFT payments, I’d recommend starting there. In that post, we explain why payments can sometimes get delayed in the correspondent banking network when you’re using SWIFT. And what’s the number one question we get when this happens? “Where’s my money?” closely followed by “Why hasn’t my supplier/beneficiary received the funds yet?”
The short answer is often, “It’s stuck somewhere in the correspondent banking network.” But here’s where the MT103 comes in to save the day.
Think of an MT103 like the tracking number you get when you ship a package. It’s globally accepted as proof of payment and includes all the juicy details—date, amount, currency, sender, recipient, and more. With Routefusion, you can generate an MT103 instantly and pass it along to your customer. They can then send it to their beneficiary, who can use it as proof that the payment is on its way. It’s like sharing that tracking number so everyone knows where things stand. In some cases, the beneficiary can even take the MT103 to their bank and get credited for the payment right away.
But the MT103’s real superpower? Tracing delayed or missing payments. Just like tracking a package that’s gone rogue, the MT103 shows the entire path the payment has taken through the banking network. This makes it easy to pinpoint where it’s getting held up. And while this feature is great for SWIFT payments, it’s completely unnecessary if you’re using local payment networks (which we highly recommend when possible!).
At Routefusion, we make it simple for you to grab an MT103, keeping your customers in the loop and minimizing frustration.
Got more questions about MT103s? Don’t hesitate to reach out—we love sharing our knowledge about cross-border payments!
