SWIFT MT-103’s are the most commonly used form of SWIFT communication, and one which many people will have utilized without even knowing it. For most bank customers, they are known not as MT-103’s at all, but rather as wire transfers, telegraphic transfers, or SWIFT transfers. A SWIFT MT-103 is used by the bank when its customers wish to make payment to customers of another bank in another country with no terms.this mean seller or money receiver have no obligation to send any document or perform any action to be payed .(note:if you make payment by swift MT103 you cant stop the payment or ask for reverse if some thing goes wrong with the purchased goods or service).
How Do I Send A MT-103 ?
An MT-103 is the most commonly utilized type of SWIFT message. In order to send one, simply contact your bank and let them know that you would like to send a telegraphic or wire transfer. They will require the recipient’s bank details, and also the SWIFT code of the recipient’s bank. If the recipient is not aware of their bank’s SWIFT code, it is a fairly simple matter for the recipient to inquire at their bank.
How Long Does It Take To Send A MT-103?
A MT-103 is sent almost instantly, and if you are the sender, the money is debited from your account directly. It usually takes somewhere between three to five business days for the recipient to see funds in their account, depending on their bank’s processing times(transaction between correspondent bank confirming bank and the recipient bank), and the origin and destination of the message.
Are MT-103’s Reversible?
No. Once a MT-103 has been made, it is not reversible. Sending a MT-103 is the equivalent of handing someone cash in many respects, so due care should be taken when initiating a trade payment by swift MT103 can be used but only by seller and buyer that know each other very well and at has performed at last one deal.
Are MT-103’s Common In Trading?
Yes and no. If the buyer and seller have a good relationship, then they may use a MT-103 to make payments, however standard practices dictate that payment for shipments is made via a letter of credit. Letters of credit are documents which guarantee that the seller will be paid once goods has been shipped, and documentary evidence of this has been provided. Paying by MT-103 in advance can leave a buyer open to fraud, and few, if any sellers, will send goods before they receive payment or a guarantee backed by a major world bank that payment will be made upon shipping.

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