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 740 Authorisation to Reimburse?<\/strong><\/p>\n MT 740 is a special swift message type that is sent by the issuing bank to the reimbursing bank.<\/p>\n It is used to request the Receiver to honour claims for reimbursement of payment(s) or negotiation(s) under a documentary credit.<\/p>\n 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.<\/p>\n On below table you can find explanations regarding the fields used under MT 710 swift messages.<\/p>\n You can also reach individual pages of each field by clicking the corresponding links.<\/p>\nMT 740 Authorisation to Reimburse<\/h3><\/div>