GLOBAL PAYMENTS KNOWLEDGEISO 20022 / SWIFT / SEPA / MT / MX
PAYMENTSSIGNAL

The interactive academy for the standards, messages, and rails that move money.

PROGRESS
DRILL · MT202 AND MT202 COV

Put SWIFT cover payment (MT103 + MT202 COV) back in order

These steps are shuffled. Put them back into the order the payment actually takes.

In SWIFT cover payment (MT103 + MT202 COV), what happens first, and what follows?

Step 1 of 1

THE DRILL AS TEXT

  1. In SWIFT cover payment (MT103 + MT202 COV), what happens first, and what follows?
    • The customer orders a USD transfer abroad — Same starting point as the serial method — the difference is how Bank Alfa chooses to route instruction and money.
    • Bank Alfa validates, screens, and debits — After checks and screening, the customer's account is debited and the bank decides on the cover method: announce directly, pay through correspondents.
    • The MT103 goes directly to Cassia — The beneficiary bank learns the full payment details immediately — who is paying whom, how much, and why. But this message alone brings no money.
    • The cover transfer goes to the correspondent — The MT202 COV moves the money along the account chain. Its sequence B repeats the underlying customer details so every bank in the chain can screen the real parties.
    • Meridian settles the cover across its books — As in the serial flow, settlement is a book transfer between the two banks' USD accounts held at Meridian.
    • Cassia sees the cover arrive on its nostro — The credit advice tells Cassia the money side is complete. Now it has both halves: instruction and funds.

This drill is built from MT202 and MT202 COV — it rearranges material written and sourced on that page rather than asserting anything new, so every claim in it is checkable there.