What is MT202 message?

What is MT202 message?

This is a message from the sending bank to the recipient’s bank, instructing the recipient’s bank to credit the recipient a certain amount. This MT202 message informs each of the banks in the chain of the payment amount, currency and recipient bank.

What is MT202 in banking?

MT202 COV is a SWIFT message format for financial institution (FI) funds transfer between financial institutions. Prior to MT202 COV the message format, MT202, were used primarily for two purposes, bank-to-bank payments (i.e. interest payments and settlement of FX trades) and cover payments.

What is difference between MT202 and MT202 COV?

The MT 202 COV is a variant of the MT 202. Therefore, the MT 202 COV is also an inter-bank financial institution transfer. Sequence B of the MT 202 COV is a copy of a selection of fields of the underlying MT 103 customer credit transfer. The MT202 COV is not an alternative message type for MT103s.

What are Ben Sha our payment instructions?

The OUR instruction means you pay all transfer charges. We receive all your payment. SHA (shared) means you only pay your bank’s outgoing transfer charge. We receive your payment minus the correspondent (intermediary) bank charges. BEN (beneficiary) means you do not pay any charge.

What is an MT202 cover payment?

In order to speed up the payment process for customer credit transfers, in some cases, an additional cover payment message (MT202) is sent to an intermediary bank whereas the underlying customer credit transfer (MT103/MT103+) is sent directly to the beneficiary bank.

Is payee the sender or receiver?

The party making a payment is commonly called the payer, while the payee is the party receiving the payment. Payments can be effected in a number of ways, for example: the use of money, cheque, or debit, credit or bank transfers.

What is SHA fee?

SHA (means shared) is used when the sender and the recipient want to split the transfer fees. That means that the sender pays the fees for the payment orders and the receiver covers the charges of the intermediary banks. BEN (from beneficiary) means that all fees are paid by the recipient of the transfer.

What is an MT 202 SWIFT payment?

The MT 202 is an interbank order to an intermediary bank or banks to cover the originator bank’s obligation to reimburse the beneficiary bank.

What is an MT 202 cover payment?

What is mt104 used for?

sent between two financial institutions on behalf of a creditor/instructing party to request the direct debit of the debtor’s account in the Receiver’s country and subsequently to credit the creditor’s account maintained by the Receiver or one of its branches.

What is an MT202 message?

This MT202 message informs each of the banks in the chain of the payment amount, currency and recipient bank. The MT202 also creates an audit trail, so it’s easy to see who helped process the transfer of funds from the sender to the recipient.

What is the difference between MT202 and MT103 CoV?

In case there is no underlying customer payment, Banks should use the normal MT202. MT202 COV has 2 sequences in the message format: Sequence A which contains the MT202 COV payment transmission details and Sequence B which contains the MT103 message details.

What is the flow of events in an MT202 COV?

The flow of events in an MT202 COV can be illustrated with the below example: Value 27 May 2009, Mr. Big orders Bank A, Brussels, to pay an invoice with number 1234 of US$10,500 to Mr. Small who has an account 987654321 with Bank B, London. Bank A processes this transaction through the cover method by sending:

What is the uetr of the MT103 announcement?

It is the End-to-end Transaction Reference (UETR) of the MT103 Announcement, that is copied unchanged to field 121 of the cover message. This introduces the Text block (block 4) and specifically the sequence A fields. All the fields below are in the text block of the MT202 COV message.