Swift is a provider of secure message platform for financial institutions mainly for banks.
Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.
For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.
Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.
What is MT 740 Authorisation to Reimburse?
MT 740 is a special swift message type that is sent by the issuing bank to the reimbursing bank.
It is used to request the Receiver to honour claims for reimbursement of payment(s) or negotiation(s) under a documentary credit.
The MT 740 authorizes the reimbursing bank to debit the account of the Sender, or one of the Sender’s branches if so indicated, for reimbursements effected in accordance with the instructions in the MT 740.
On below table you can find explanations regarding the fields used under MT 710 swift messages.
You can also reach individual pages of each field by clicking the corresponding links.
MT 740 Authorisation to Reimburse
|M||20||Documentary Credit Number|
|O||31D||Date and Place of Expiry|
|O||39A||Percentage Credit Amount Tolerance|
|O||39B||Maximum Credit Amount|
|O||39C||Additional Amounts Covered|
|M||41a||Available With ... By ...|
|O||42C||Drafts at ...|
|O||42M||Mixed Payment Details|
|O||42P||Deferred Payment Details|
|O||71A||Reimbursing Bank's Charges|
|O||72||Sender to Receiver Information|
|O : Optinal M : Mandatory|
MT 740 Network Validated Rules
- C1 Either field 39A or 39B, but not both, may be present.
- C2 When used, fields 42C and 42a must both be present.
- C3 Either fields 42C and 42a together, or field 42M alone, or field 42P alone may be present. No other combination of these fields is allowed.
- C4 Either field 58a or 59, but not both, may be present.
Sample: MT 740 Authorisation to Reimburse SWIFT Message
Sender : AMCONL2A
Message Type : 740
Receiver : OELBATSW
20 : Documentary Credit Number
40F : Applicable Rules
URR LATEST VERSION
32B : Credit Amount
41A : Available With … By …
NOMISESW BY ACCEPTANCE
71A : Reimbursing Bank’s Charges
72 : Sender to Receiver Information
RESTRICTED TO CLAIMING BANK’S ACCEPTANCE COMMISSION
End of Message Text/Trailer
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