An MT103 is the SWIFT message a bank sends to move a single customer payment across borders — the electronic instruction that says who is paying, who is being paid, how much, in what currency and who bears the charges. When a foreign client says "we've sent it, here's the MT103", they are giving you the best evidence of what left their bank. For an Indian service exporter, a handful of its fields are exactly what you need to match the payment to an invoice on your EDF.
Key takeaways
- The MT103 is proof the payment was sent; your FIRA or bank advice is proof it arrived.
- Field 32A shows value date, currency and amount; 33B shows the originally instructed amount.
- Field 70 (remittance information) is where your invoice number should appear — ask clients to put it there.
- Field 71A tells you whether charges were OUR, SHA or BEN, which explains any shortfall.
- Banks have been moving to the ISO 20022 format, but most still call the payment confirmation an "MT103" and carry the same information.
Why a services exporter should care
Since 1 October 2026, every service invoice you raise to a foreign client goes into a monthly EDF, and your bank enters it into EDPMS. The entry stays open until the payment is matched to that invoice. Matching is easy when one payment equals one invoice and the reference is clear. It gets messy when a client pays three invoices in one go, an intermediary takes a fee, or the remitter's name doesn't match your client's name.
The MT103 settles most of those questions. It's the document you send your bank when a credit is stuck or mismatched.
The fields that matter
You don't need to read every line. These are the ones that answer an exporter's questions:
| Field | Name | What it tells you | Why it matters for your EDF |
|---|---|---|---|
| 20 | Sender's reference | The sending bank's transaction reference | Quote it when asking your bank to trace a payment |
| 32A | Value date, currency, amount | The settled amount and date | Compare with the invoice amount and your realisation deadline |
| 33B | Currency / instructed amount | What the client originally instructed | Shows if deductions happened on the way |
| 50K / 50A | Ordering customer | Who paid | Should match the recipient in Part 2B, or explain a third-party payer |
| 52A | Ordering institution | The client's bank | Useful for tracing |
| 56A | Intermediary institution | A bank in the middle | Often the source of deductions |
| 57A | Account with institution | Your bank or its correspondent | Confirms the money was routed to the right place |
| 59 | Beneficiary customer | You — name and account | Spelling or account errors cause holds |
| 70 | Remittance information | Free text from the payer | Where your invoice number should appear |
| 71A | Details of charges | OUR, SHA or BEN | Explains why the amount received differs |
| 71F / 71G | Sender's / receiver's charges | Charges taken or to be taken | Quantifies the shortfall |
The new ISO 20022 messages carry the same information under different labels, and many banks show customers a readable summary rather than raw fields. If your client sends a "payment confirmation" instead of an MT103, look for the same items: payer, amount, date, charges and reference.
A worked example: reading one message
Saffron Ledger Services LLP, a fictional bookkeeping firm in Kochi, invoiced a UK client GBP 3,600 on 8 October 2026 (invoice SLS/26/118) and another GBP 1,400 on 22 October (SLS/26/124). On 18 November, its bank credited GBP 4,985.
The client shared the MT103. The useful lines read:
- 32A: value date 17 November 2026, GBP 4,985.00
- 33B: GBP 5,000.00
- 50K: Harbourline Property Ltd, London
- 59: Saffron Ledger Services LLP, account number ending 4471
- 70: INV SLS/26/118 SLS/26/124
- 71A: SHA
- 71F: GBP 15.00
What it tells Saffron:
- One payment settled two invoices — both on the October EDF.
- The client instructed the full GBP 5,000, so it intended to pay in full.
- Under SHA, the sending side's charges came off the amount: GBP 15.
- Field 70 names both invoices, so the bank can split the credit correctly.
Saffron emails its bank a matching instruction: GBP 3,600 against SLS/26/118 and GBP 1,385 plus GBP 15 bank charges against SLS/26/124, attaching the MT103. Both invoices were well under ₹10 lakh, so Saffron can also include them in its next periodic ₹10 lakh realisation declaration.
OUR, SHA and BEN in plain words
| Code | Who pays charges | What you usually receive |
|---|---|---|
| OUR | Payer pays all charges | Close to the full instructed amount, though intermediaries sometimes still deduct |
| SHA | Each side pays its own bank's charges | Instructed amount minus sending/intermediary charges |
| BEN | Beneficiary (you) pays all charges | Instructed amount minus all charges |
If your contract says the client bears all charges, ask them to send payments as OUR. It won't always prevent intermediary deductions, but it cuts most of them. Our piece on bank charges deducted abroad covers how these affect the export value.
When the MT103 helps you fix a problem
Payment on hold at your bank. Banks sometimes hold an inward credit for missing information — purpose, invoice, EDF. Send the MT103 with the invoice, and an EDF if one is due.
Wrong or missing reference. If field 70 is blank, your bank can't tell which invoice was paid. Send a matching instruction yourself.
Payer is not your client. If field 50 shows a parent company or agent, that's a third-party payment. Your EDF has fields for third-party details (1.15–1.16), and your bank may want an explanation.
Payment "sent" but not received. Field 20 and the UETR (a unique tracking reference that many banks now include) let your bank trace the payment through the chain.
Banks don't always forward the MT103 to the beneficiary automatically. Ask your client's finance team for it, or ask your bank whether it can share the inward message details.
This is general information, not legal or tax advice.
Getting clients to send cleaner payments
A short line on every invoice saves hours later. Our export invoice generator has room for payment instructions; add something like:
- "Please quote the invoice number in the payment reference."
- "Charges: OUR (all bank charges borne by remitter)."
- Full beneficiary name exactly as on your bank account, account number, SWIFT code of your bank and any intermediary bank your bank specifies.
The SWIFT code identifies your bank for the international leg. It isn't the same as your AD code or IFSC.
Frequently asked questions
What is an MT103 in simple terms?
It is the standard SWIFT message used to send a single cross-border customer payment. It lists the payer, the beneficiary, the amount, the value date, the charges arrangement and any payment reference. Think of it as the sending bank's official record of the transfer.
Is the MT103 the same as a FIRA or FIRC?
No. The MT103 is created by the sending side and shows what was sent. A FIRA or FIRC is issued by your Indian bank and confirms the money was received, with the purpose code. You usually need the FIRA for EDPMS matching and GST; the MT103 helps with tracing and reconciliation.
Why is the amount I received less than the invoice?
Look at fields 33B, 71A and 71F/71G. Under SHA or BEN, bank charges are deducted along the way, and intermediary banks may take a fee. The MT103 shows where the money went so you can explain the difference to your bank.
How do I get an MT103 for a payment I received?
Ask the client's finance team, who can request it from their bank, or ask your own bank whether it can share the inward message details. Some banks provide a summary rather than the raw message.
Has MT103 been replaced by ISO 20022?
Banks have been moving cross-border payments to ISO 20022 messages, which carry the same information in a richer format. Many banks and clients still call the payment confirmation an "MT103", and the fields you need for matching are still there under different names.
Bottom line
Read an MT103 for five things: payer, amount, date, charges and reference. Those answer almost every matching question on your EDF invoices. Put clear payment instructions on your invoices with our free export invoice generator, and if a payment lands with the wrong purpose, use the purpose code correction letter to fix it.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.