Swift is a provider of secure message platform for financial institutions mainly for banks.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
What is MT 720 Transfer of a Documentary Credit?<\/strong><\/p>\n MT 720 is a special swift message type that is used with transferable letters of credit only.<\/p>\n MT 720 swift message is used by the transferring bank to advise the transfer of the documentary credit, to the bank advising credit to the second beneficiary.<\/p>\n It is used to advise the second beneficiary about the terms and conditions of the transferred documentary credit, or part thereof.<\/p>\n On below table you can find explanations regarding the fields used under MT 720 swift messages.<\/p>\n You can also reach individual pages of each field by clicking the corresponding links.<\/p>\nMT 720 Transfer of a Documentary Credit<\/h3><\/div>