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Collecting bank 1 NOW Collecting bank 2 Sending it earlier 3 Message tells BNP 4 Field 33A 5 Remitting bank pre-credit 6 Amount remitted after Santander deducts EUR Before an MT400 is sent, the collecting bank must have completed the presentation and obtained payment or its equivalent. Step 1 of 6 Collecting bank 1 NOW Collecting bank 2 Sending it earlier 3 Message tells BNP 4 Field 33A 5 Remitting bank pre-credit 6 Amount remitted after Santander deducts EUR Before an MT400 is sent, the collecting bank must have completed the presentation and obtained payment or its equivalent. Step 1 of 6
Sending it earlier would mislead 1 Collecting bank 2 NOW Sending it earlier 3 Message tells BNP 4 Field 33A 5 Remitting bank pre-credit 6 Amount remitted after Santander deducts EUR Sending it earlier would mislead the remitting bank into crediting the exporter before the money is secure. Step 2 of 6 Sending it earlier would mislead 1 Collecting bank 2 NOW Sending it earlier 3 Message tells BNP 4 Field 33A 5 Remitting bank pre-credit 6 Amount remitted after Santander deducts EUR Sending it earlier would mislead the remitting bank into crediting the exporter before the money is secure. Step 2 of 6
Message tells BNP Paribas that it 1 Collecting bank 2 Sending it earlier 3 NOW Message tells BNP 4 Field 33A 5 Remitting bank pre-credit 6 Amount remitted after Santander deducts EUR The message tells BNP Paribas that it can now credit the exporter, subject to the funds actually arriving by the stated remittance route. Step 3 of 6 Message tells BNP Paribas that it 1 Collecting bank 2 Sending it earlier 3 NOW Message tells BNP 4 Field 33A 5 Remitting bank pre-credit 6 Amount remitted after Santander deducts EUR The message tells BNP Paribas that it can now credit the exporter, subject to the funds actually arriving by the stated remittance route. Step 3 of 6
Field 33A 1 Collecting bank 2 Sending it earlier 3 Message tells BNP 4 NOW Field 33A 5 Remitting bank pre-credit 6 Amount remitted after Santander deducts EUR Field 33A gives the amount remitted after charges, if different. Step 4 of 6 Field 33A 1 Collecting bank 2 Sending it earlier 3 Message tells BNP 4 NOW Field 33A 5 Remitting bank pre-credit 6 Amount remitted after Santander deducts EUR Field 33A gives the amount remitted after charges, if different. Step 4 of 6
Remitting bank pre-credit checks 1 Collecting bank 2 Sending it earlier 3 Message tells BNP 4 Field 33A 5 NOW Remitting bank pre-credit 6 Amount remitted after Santander deducts EUR The remitting bank should check that the funds have arrived, or that the MT400 states a remittance method it can rely on, before it credits the exporter in full. Step 5 of 6 Remitting bank pre-credit checks 1 Collecting bank 2 Sending it earlier 3 Message tells BNP 4 Field 33A 5 NOW Remitting bank pre-credit 6 Amount remitted after Santander deducts EUR The remitting bank should check that the funds have arrived, or that the MT400 states a remittance method it can rely on, before it credits the exporter in full. Step 5 of 6
Amount remitted after Santander deducts EUR 350 1 Collecting bank 2 Sending it earlier 3 Message tells BNP 4 Field 33A 5 Remitting bank pre-credit 6 NOW Amount remitted after Santander deducts EUR Field 33A reads EUR 249,650, the amount remitted after Santander deducts EUR 350 in collection charges. Step 6 of 6 Amount remitted after Santander deducts EUR 350 1 Collecting bank 2 Sending it earlier 3 Message tells BNP 4 Field 33A 5 Remitting bank pre-credit 6 NOW Amount remitted after Santander deducts EUR Field 33A reads EUR 249,650, the amount remitted after Santander deducts EUR 350 in collection charges. Step 6 of 6

Flow of the explanation in this lesson.

0:00 / 3:49 Step 1 of 6

MT400: Advice of Payment and Announcing the Proceeds

Documentary Collections and SWIFT Category 4, Lesson 6 of 7, Narration 3:49, D06 Cross-border payments

Value datepacs.008MT400

What you will learn

Your objective. By the end of this lesson, you will be able to explain mt400: advice of payment and announcing the proceeds. Before an MT400 is sent, the collecting bank must have completed the presentation and obtained payment or its equivalent.

Why it matters. Before an MT400 is sent, the collecting bank must have completed the presentation and obtained payment or its equivalent.

Chapter objective: Learner explains documentary collections, the roles of remitting and collecting banks, and the SWIFT Category 4 messages used at each stage. Learner uses real examples with amounts, banks and message names to show how the topic works in practice.

Key learning points

  • Collecting bank
  • Sending it earlier would mislead
  • Message tells BNP Paribas that it
  • Field 33A
  • Remitting bank pre-credit checks
  • Amount remitted after Santander deducts EUR 350

Key terms

Value date: The date on which funds become available to the beneficiary and on which interest starts to accrue. It is the date used for settlement and for nostro posting.

pacs.008: An ISO 20022 message for a financial institution to financial institution customer credit transfer. It replaces MT103 in cross border payments and carries structured debtor, creditor, charges and...

MT400: A SWIFT message used to advise a bank of the collection of a documentary credit or a bill, and to request payment or acceptance.

SWIFT MT message viewer showing MT400: Advice of Payment and Announcing the Proceeds.

Practise this lesson

Exercise

Apply the concept in this lesson to a real banking scenario.

Use the definition, the example and the key points in this lesson.

  1. What to do. Explain the concept in your own words, give a banking example with an amount, and state what goes wrong if it is misunderstood.

Correct result. A correct answer names the concept accurately, uses a realistic banking example with a concrete amount, and identifies the consequence of getting it wrong.

Why. Understanding is not memorising a definition. It is being able to explain it, apply it, and spot the failure it prevents.

Check your understanding

Practice question

Which of the following best describes mt400: advice of payment and announcing the proceeds?

Takeaway and next step

What to remember

BNP Paribas matches Field 21 to its file, credits the exporter EUR 249,650, and closes the collection.

Build a cross-border payment like the one in this lesson and watch the chain, the charges, and the final amount change.

Open the Cross-Border Payment Configurator →

Builds on "SWIFT Category 4 Messages Explained".

Transcript and full text

Show transcript

MT400 is the advice of payment for a documentary collection. It is sent by the collecting bank to the remitting bank, advising that the proceeds of a collection have been received, and stating the amount, the value date, and the charges deducted. It is the message that authorises the remitting bank to credit the exporter. Without an MT400, the remitting bank does not know that the drawee has paid, and it cannot credit the exporter. The MT400 is therefore the message that closes the collection, and it is the message a business analyst must understand in detail. The fields of an MT400 are as follows. Field 20 is the transaction reference, format 16x, which is the collecting bank reference for the collection. Field 21 is the related reference, format 16x, which is the remitting bank reference from the original instruction, so the remitting bank can match the MT400 to its own record. Field 32A is the value date, currency code, and amount, format 6!n3!a15d, for example 120526EUR250000,00, which states the date the proceeds were received, the currency, and the amount. Field 32B is the currency code and amount, format 3!a15d, used when the value date is carried separately. Field 33A or 33B is the amount, used when the proceeds are in a different currency from the collection, or when the amount is stated in a second currency. Field 53a is the sender correspondent, which names the bank where the proceeds are held, or the bank through which the proceeds will be remitted. Field 57a is the account with institution, which names the bank where the remitting bank account is held, so the proceeds can be credited. Field 71B is the details of charges, format 6*35x, which states the charges deducted by the collecting bank, for example OUR CHARGES EUR 150,00. Field 72 is the sender to receiver information, format 6*35x, which carries any additional information, such as the collection reference, the drawee name, or a note that the proceeds are net of charges. The MT400 may also carry field 34B, the commission and charges, and field 77B, the regulatory reporting information. The value date in field 32A is the date the collecting bank received the proceeds from the drawee, or the date the collecting bank will remit them. The remitting bank uses the value date to calculate the interest, and to credit the exporter with the correct value date. If the value date is wrong, the exporter loses interest, or the remitting bank credits the exporter late. The amount in field 32A is the amount received from the drawee, before the collecting bank charges are deducted, or after, depending on the bank practice. The instruction should state whether the MT400 amount is gross or net of charges, and the remitting bank should check the amount against the collection instruction before crediting the exporter. Announcing the proceeds is the purpose of the MT400, and the announcement must be accurate. The collecting bank should send the MT400 on the day the proceeds are received, not days later, because the exporter is waiting for the money and the remitting bank cannot credit the exporter until it receives the advice. A delay in the MT400 is a delay in the exporter payment, and it is a common operational complaint. The remitting bank, on receiving the MT400, should check the related reference in field 21 against its own record, check the amount in field 32A against the collection amount, check the charges in field 71B against the agreed charges, and then credit the exporter account. If the amount is short, the remitting bank should query the collecting bank before crediting the exporter, because a short payment may mean a charge was deducted that was not agreed. Here is an example of an MT400. The collecting bank in Madrid sends an MT400 to the remitting bank in Paris. Field 20 carries the collecting bank reference COLL 2026 0512 001. Field 21 carries the remitting bank reference REM 2026 0501 014. Field 32A carries 120526EUR249850,00, meaning the proceeds of 249,850 euros were received on 12 May 2026. The collection was for 250,000 euros, and the collecting bank deducted 150 euros in charges, which are stated in field 71B as OUR CHARGES EUR 150,00. Field 53a names the collecting bank, and field 57a names the remitting bank account. Field 72 states PROCEEDS OF COLLECTION FOR INVOICE INV 2026 0441. The remitting bank receives this MT400, checks the amount and the charges, and credits the exporter with 249,850 euros, less its own charges. The edge cases for an MT400 are worth knowing. A partial payment, where the drawee pays only part of the amount, is advised with an MT400 for the amount received, and the collecting bank should state in field 72 that it is a partial payment, and should hold the documents for the balance. A payment in a different currency from the collection is advised with field 33A or 33B carrying the second currency and amount, and the exchange rate should be stated. A payment received after the maturity date of a usance bill should be advised with the value date of receipt, and the collecting bank should note the delay. An MT400 that arrives with a related reference the remitting bank cannot match should be queried immediately, because it may be a misdirected advice, and crediting the wrong exporter is a serious error. For a business analyst, the MT400 requirement must state the fields, the validation, and the credit. The requirement should say that the system generates an MT400 when the proceeds are received, that it carries the field 20, 21, 32A, 53a, 57a, 71B, and 72, that it validates the amount against the collection instruction before sending, and that the receiving system matches the field 21 related reference to its own record, checks the amount and the charges, and then credits the exporter. A system that cannot match an MT400 to its collection cannot credit the exporter, and the collection will remain open.

MT400 is the advice of payment for a documentary collection. It is sent by the collecting bank to the remitting bank, advising that the proceeds of a collection have been received, and stating the amount, the value date, and the charges deducted. It is the message that authorises the remitting bank to credit the exporter. Without an MT400, the remitting bank does not know that the drawee has paid, and it cannot credit the exporter. The MT400 is therefore the message that closes the collection, and it is the message a business analyst must understand in detail.

The fields of an MT400 are as follows. Field 20 is the transaction reference, format 16x, which is the collecting bank reference for the collection. Field 21 is the related reference, format 16x, which is the remitting bank reference from the original instruction, so the remitting bank can match the MT400 to its own record. Field 32A is the value date, currency code, and amount, format 6!n3!a15d, for example 120526EUR250000,00, which states the date the proceeds were received, the currency, and the amount. Field 32B is the currency code and amount, format 3!a15d, used when the value date is carried separately. Field 33A or 33B is the amount, used when the proceeds are in a different currency from the collection, or when the amount is stated in a second currency.

Field 53a is the sender correspondent, which names the bank where the proceeds are held, or the bank through which the proceeds will be remitted. Field 57a is the account with institution, which names the bank where the remitting bank account is held, so the proceeds can be credited. Field 71B is the details of charges, format 6*35x, which states the charges deducted by the collecting bank, for example OUR CHARGES EUR 150,00. Field 72 is the sender to receiver information, format 6*35x, which carries any additional information, such as the collection reference, the drawee name, or a note that the proceeds are net of charges. The MT400 may also carry field 34B, the commission and charges, and field 77B, the regulatory reporting information.

The value date in field 32A is the date the collecting bank received the proceeds from the drawee, or the date the collecting bank will remit them. The remitting bank uses the value date to calculate the interest, and to credit the exporter with the correct value date. If the value date is wrong, the exporter loses interest, or the remitting bank credits the exporter late. The amount in field 32A is the amount received from the drawee, before the collecting bank charges are deducted, or after, depending on the bank practice. The instruction should state whether the MT400 amount is gross or net of charges, and the remitting bank should check the amount against the collection instruction before crediting the exporter.

Announcing the proceeds is the purpose of the MT400, and the announcement must be accurate. The collecting bank should send the MT400 on the day the proceeds are received, not days later, because the exporter is waiting for the money and the remitting bank cannot credit the exporter until it receives the advice. A delay in the MT400 is a delay in the exporter payment, and it is a common operational complaint. The remitting bank, on receiving the MT400, should check the related reference in field 21 against its own record, check the amount in field 32A against the collection amount, check the charges in field 71B against the agreed charges, and then credit the exporter account. If the amount is short, the remitting bank should query the collecting bank before crediting the exporter, because a short payment may mean a charge was deducted that was not agreed.

Here is an example of an MT400. The collecting bank in Madrid sends an MT400 to the remitting bank in Paris. Field 20 carries the collecting bank reference COLL 2026 0512 001. Field 21 carries the remitting bank reference REM 2026 0501 014. Field 32A carries 120526EUR249850,00, meaning the proceeds of 249,850 euros were received on 12 May 2026. The collection was for 250,000 euros, and the collecting bank deducted 150 euros in charges, which are stated in field 71B as OUR CHARGES EUR 150,00. Field 53a names the collecting bank, and field 57a names the remitting bank account. Field 72 states PROCEEDS OF COLLECTION FOR INVOICE INV 2026 0441. The remitting bank receives this MT400, checks the amount and the charges, and credits the exporter with 249,850 euros, less its own charges.

The edge cases for an MT400 are worth knowing. A partial payment, where the drawee pays only part of the amount, is advised with an MT400 for the amount received, and the collecting bank should state in field 72 that it is a partial payment, and should hold the documents for the balance. A payment in a different currency from the collection is advised with field 33A or 33B carrying the second currency and amount, and the exchange rate should be stated. A payment received after the maturity date of a usance bill should be advised with the value date of receipt, and the collecting bank should note the delay. An MT400 that arrives with a related reference the remitting bank cannot match should be queried immediately, because it may be a misdirected advice, and crediting the wrong exporter is a serious error.

For a business analyst, the MT400 requirement must state the fields, the validation, and the credit. The requirement should say that the system generates an MT400 when the proceeds are received, that it carries the field 20, 21, 32A, 53a, 57a, 71B, and 72, that it validates the amount against the collection instruction before sending, and that the receiving system matches the field 21 related reference to its own record, checks the amount and the charges, and then credits the exporter. A system that cannot match an MT400 to its collection cannot credit the exporter, and the collection will remain open.

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