Table of Contents – SWIFT Question & Answers
1. What is an MT103?
An MT103 is a SWIFT message used for single customer credit transfers (SCT). It facilitates cross-border payments from one bank to another on behalf of a customer. Check complete post to understand complete flow.
2. What is an MT202?
An MT202 is a bank-to-bank payment message used for transferring funds between financial institutions (not customer-initiated). Check complete post to understand full flow.
3. What’s the difference between MT103 and MT202?
- MT103 is for customer payments, while MT202 is for interbank transfers.
- MT103 includes sender/beneficiary details; MT202 only has ordering and beneficiary bank info.
4. What are MX messages?
MX messages are ISO 20022 XML-based messages, replacing traditional MT messages for improved data richness and compliance.
5. What’s the difference between MT and MX messages?
- MT is a legacy fixed-length format, while MX is XML-based with structured data.
- MX supports more detailed remittance information and is part of SWIFT’s migration to ISO 20022.
6. What is a SWIFT return message?
A return message (e.g., MT199, MT196) is sent back to the sender if a payment fails due to errors like invalid account details or compliance issues.
7. What is SWIFT migration?
SWIFT migration refers to the transition from MT-based messaging to ISO 20022 (MX), improving data quality and automation in payments.
8. What is an MT196?
An MT196 is a query message used to request information or clarification about a transaction.
Example:
A bank sends an MT196 to another bank asking:
“Please confirm the status of MT103 Ref: XYZ123 dated 25/03/2025 for USD 10,000.”
9. What is an MT192?
An MT192 is a request for cancellation of a payment instruction (e.g., MT103 or MT202).
Example:
A bank sends an MT192 to cancel a payment:
“Request immediate cancellation of MT103 Ref: ABC456 dated 20/03/2025 for EUR 5,000 due to incorrect beneficiary details.”
10. What is an MT199?
An MT199 is a free-format message used for general communication between banks, often for acknowledgments or queries.
Example:
A bank sends an MT199 to confirm receipt:
“We acknowledge receipt of your MT103 Ref: DEF789. Payment will be processed by EOD.”
11. What is the MX equivalent of MT103?
The MX equivalent of MT103 is pacs.008 (Customer Credit Transfer) under ISO 20022.
12. What is the MX equivalent of MT202?
The MX equivalent of MT202 is pacs.009 (Financial Institution Transfer).
13. What is the MX equivalent of MT199?
The MX equivalent of MT199 is admi.004 (Notification of Rejection) or admi.002 (Status Advice).
14. Can MT103 and MT202 be used together?
Yes, an MT103 can trigger an MT202 if the payment involves intermediary banks.
15. What happens if an MT103 is rejected?
The sender receives a return message (MT196/MT199) explaining the reason (e.g., wrong account, insufficient funds).
16. What is an MT103 REMIT message?
An MT103 REMIT includes enhanced remittance information for better reconciliation.
17. What is the purpose of MT202 COV?
An MT202 COV (Cover Payment) is used when an MT103 is sent alongside an MT202 to ensure proper fund routing.
18. What is the difference between MT103 and MT103+?
MT103+ includes additional remittance data compared to a standard MT103.
19. What is the MT192 used for?
An MT192 is sent to request cancellation of a previously sent payment message (e.g., MT103).
20. What is the MT196 used for?
An MT196 is a query message used to request transaction details or clarification.
21. How does SWIFT migration impact MT messages?
SWIFT migration phases out MT messages in favor of MX (ISO 20022), improving data transparency.
22. When will MT messages be fully replaced?
MT messages for payments will be fully replaced by November 2025, though some non-payment MTs may remain. Check updated dates here.
23. What is the MX version of MT192?
The MX equivalent of MT192 is camt.056 (Request for Cancellation).
24. What is the MX version of MT196?
The MX equivalent of MT196 is camt.053 (Statement) or camt.054 (Debit/Credit Notification) for queries.
25. Can banks still use MT messages after migration?
Banks can still use some MT messages (e.g., MT199), but payment-related MTs (103, 202) will be replaced by MX.
26. What is the difference between serial and cover SWIFT messages?
- Serial Payment (MT103 + MT202):
- The MT103 (customer payment) and MT202 (interbank transfer) are sent separately.
- Used when beneficiary bank details are known upfront.
- Cover Payment (MT103 + MT202 COV):
- The MT103 is sent directly to the beneficiary bank, while the MT202 COV is sent to an intermediary bank for funding.
- Used when the beneficiary bank requires direct payment instructions.
Example:
- Serial: Bank A sends MT103 to Bank B and MT202 to Bank C (intermediary).
- Cover: Bank A sends MT103 to Bank B and MT202 COV to Bank C to cover the payment.
Final Thoughts
Understanding SWIFT messages is essential for seamless cross-border transactions. With ISO 20022 migration, banks must adapt to MX messages while phasing out legacy MT formats.
Would you like a deeper dive into any specific message type? Let us know in the comments!
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