What is MT103?
MT103 is the name of the SWIFT message type used for a single customer credit transfer, in other words, an ordinary international wire from one person or business to another. The message carries the details that matter: the ordering customer, the beneficiary and account, the amount and currency, the value date, a payment reference and a field that says who bears the charges (commonly OUR, SHA or BEN). SWIFT has been moving the industry towards newer ISO 20022 message formats, but many banks and clients still say "MT103" when they mean the payment confirmation.
Why it matters for exporters
When a client says "we paid you" and the money has not shown up, the MT103 or its equivalent is the best way to trace it. Your bank can use the reference to find the payment, check whether an intermediary bank is holding it, and see what charges were taken. It also explains short receipts: if the invoice was for USD 5,000 and USD 4,960 arrived, the charges field usually tells you why.
That matters for EDF and EDPMS matching. A payment that arrives short or with a vague remitter name is easier to match when you can show the bank the MT103 alongside your invoice. Keep a copy in your records and note the reference in your EDF register.
Example
Arc Design Studio's client in Australia emails a PDF of an MT103 for AUD 6,500, charges code SHA. Four days later only AUD 6,470 reaches Arc's bank in Bengaluru, credited as ₹3,71,000. Arc shares the MT103 with the branch, which confirms an intermediary fee of AUD 30 and issues the FIRA.
Common confusion
An MT103 is proof that a payment instruction was sent, not proof that you received the money. Only your bank's credit and FIRA confirm receipt. For a field-by-field reading, see SWIFT MT103 explained.