Filling MT101 , MT 103 ,MT 202 and COV messages

in this blog, I am trying to explain the essential attributes and its basic values to be filled and concept around them in payment processing, in my one of previous project I have gone through a scenario where I have to map payment initiation messages and interbank payment messages with their values which are added by customers (ordering/initiating) via payment channel interface or bank adding it through their portal or digitally via validation /checks or services.

Let go through with MT101 , MT103 and MT202 /COV one by one.

MT 101 - Payment initiation, is used by customers who have access of the applications provided by the ordering bank or via the SWIFT interface authorized by their bank to use to send payments.

eg: Customer payments like normal retail payments via IMPS, NEFT, RTGS , or Cross border payments ,Book payments, or Request to Transfer, or Corporate payments like supplier payment in bulk or single, tax payments, business deals invoice payments can be initiated via bank provided interface or SWIFT.

Corporate can use one single set of MT 101 payment format for its corporate needs and can use one bank as concentrator bank as cash manager to either execute ownself or by other party.

All MT 101 sent could be categorized to any below scenarios, mostly the MT101 is sent.

1. Sending a single initiation message with a single transaction with own bank

2. Sending a single initiation message with a single transaction with another bank.

3. Sending a single initiation message with multiple transactions from the same debit account of the customer

4. Sending a single initiation message with multiple transactions from the different debit accounts of customer in the same bank

5. Sending a single initiation message with help of a forwarding institution.

6. Sending a single initiation message which includes cross-border transactions with sender /receiver correspondent.

Note : These examples have bank relationships described in image whether a bank uses purely SWIFT OR STEP1/EURO1 or TARGET1 option is completely on customer or Bank discretion.

Each SWIFT MT101 consists of a SWIFT header (optional), the MUG (message user group), a common sequence A, and sequence B, which contains the details of the transaction.

Sequence A, General Information, is a single occurrence mandatory sequence and contains information to be applied to all individual transactions detailed in sequence B.

Sequence B, Transaction Details, is a repetitive sequence. Each occurrence provides details of one individual transaction. Fields which appear in both sequences are mutually exclusive (apply to fields 50a C or L, 50a G or H, 52a) , lets understand this with examples.

1st Example

in this example, Corporation Venice Corp of bank EuroBank in Finland wants to send a single transaction of 10k to Demi Lavato Builder in Finland who banks with the same bank in Paris.

2nd Example

in this example, Corporation Venice Corp of bank EuroBank in Finland wants to send a single transaction of 10k to Demi Lavato Builder in Paris who banks with BNP Paribas bank in Paris. and it has a direct relationship

3rd Example

In this example, Corporation Venice Corp of bank EuroBank located in Finland wants to send the first payment of 100k EUR to Demi Lavato Builder in Paris and the second payment of 200 K to Nick Jonas builder in Paris. Demi Lavato is a customer of Bank BNP Paribas in France and Nick Jonas builder is a customer of bank Deutsche bank in France as well. Eurobank in Finland and BNP Paribas Paris have a direct banking relationship, and BNP Paribas and Deutsche Paris have a direct banking relationship as well. He wants to use the same accounts for both transactions and he is submitting both transactions in the very same MT101.

4th Example

In this example, Corporation Venice Corp of bank Eurobank located in Finland wants to send the first payment of 100k EUR to Demi Lavato Builder in Paris and the second payment of 200 K to Nick Jonas builder in Paris. Demi Lavato is a customer of Bank BNP Paribas in France and Nick Jonas builder is a customer of bank Deutsche bank in France as well. Eurobank in Finland and BNP Paribas Paris have a direct banking relationship, and BNP Paribas and Deutsche Paris have a direct banking relationship as well. He wants to use different accounts for both transactions and he is submitting both transactions in the very same MT101.

6th Example

in this example , Corporation Venice Corp of bank EuroBank in Finland wants to send single transaction of 100k to Demi Lavato Builder in Paris who banks with BNP Paribas bank in Paris. EuroBank wants to use its own account it holds Deutsche bank in Paris (the subsidiary company has provided authorization to parent company in Finland) and BNP Paribas bank doesn't bank with Eurobank Finland and have domestic relationship with Deutsche Bank Paris.

6th Example

in this example, Corporation Venice Corp of bank EuroBank in Finland wants to send 1000 USD payment to United states based Bon Von Builder who banks with WASH bank US and it has receiver correspondent CITI bank.

7th Example

In this example, Corporation Venice Corp of bank Eurobank located in Finland wants to send the first payment of 100k EUR to Demi Lavato Builder in Paris and the second payment of 200 K to Nick Jonas builder in Paris. Demi Lavato is a customer of Bank BNP Paribas in France and Nick Jonas builder is a customer of bank Deutsche bank in France as well. Eurobank in Finland and BNP Paribas Paris have a direct banking relationship, and BNP Paribas and Deutsche Paris have a direct banking relationship as well. He wants to use different accounts for both transactions one account from Eurobank Finland and another account from bank XYZ in Finland (as Venice Corp is account holder to that bank) who banks with BNP Paribas in Paris as well and he is submitting both transactions in the very same MT101.

For MT103 / MT202 and COV will be added soon