Understanding SWIFT Transaction Reference Numbers: Can You Track Money Refunds?
When dealing with international or domestic payments, it’s crucial to have a clear understanding of the transaction reference numbers. This article focuses on the SWIFT payment messages and explains if transaction reference numbers can help track money refunds. We will explore different types of reference numbers and whether they can be used to trace the refund to a specific account.
Transaction Reference Numbers in SWIFT Payment Messages
SWIFT (Society for Worldwide Interbank Financial Telecommunication) payment messages are the standard format used for international transfers. Field 20 of these messages often includes a transaction reference number. This number is constructed by the back office applications of the banks, and it can be a random value. Although it is typically unique, it is not guaranteed by SWIFT, and there are no checks performed by SWIFT on the field.
Back Office Construction of Transaction Reference Numbers
The transaction reference number in the SWIFT payment message is generated by the bank’s back office systems. These systems are responsible for the processing of individual transactions, and they use this number for their internal referencing. However, the uniqueness and structure of this number are not standardized. Therefore, it is not possible to use this number to trace the refund to a specific account.
Message Input/Output Reference Numbers
When considering the Message Input/Output (MIO) reference numbers that are included on the network level, the situation is slightly different. These numbers serve a different purpose and include additional information such as date and time of message transmission or receipt, the logical terminal, the BIC (Bank Identifier Code) of the sending or receiving bank, and sequence numbers. However, these reference numbers are not designed to track the refund process either.
Conclusion
While transaction reference numbers play a critical role in the processing and tracking of SWIFT payments, they do not provide the capability to trace refunds to a specific account. The random nature of the reference number field in SWIFT payment messages and the specific structure of MIO reference numbers indicate that they are more useful for internal bank operations rather than transaction tracking by customers.
Frequently Asked Questions
Can I use SWIFT transaction reference numbers to trace refunds?
No, SWIFT transaction reference numbers, whether in the SWIFT payment message field or in the network level MIO reference numbers, do not enable tracking of refunds to a specific account. These numbers are primarily used for internal record-keeping within banks and not for customer-level transaction tracking.
What additional information is included in MIO reference numbers?
Message Input/Output (MIO) reference numbers include date and time of transmission or receipt, the logical terminal, the BIC of the sending or receiving bank, and sequence numbers. This information helps banks manage their internal processes but does not provide sufficient detail for external tracking of refunds.
Keywords
SWIFT transaction reference number refund tracking SWIFT Message Input/OutputRelated Articles
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