Example of WIRE FORMAT MT799
(Swift MT799) Is a Simple Text Message Sent from buyer’s bank to seller’s bank. This is used for a bank to bank POF (Proof of Funds) only. The Swift MT799 is not a form of payment & is not a bank undertaking a promise to pay. It is simply a bank to bank confirmation of the funds on deposit, nothing more.
The MT799 is usually issued before a contract is signed and before a letter of credit or bank guarantee is issued. After the MT799 has been received by the seller’s bank, it is then normally the responsibility of the seller’s bank to send a POP (proof of product) to the buyer’s bank, at which point the trade continues towards commencement.The actual payment method commonly used is a documentary letter of credit, which the seller presents to the issuing or confirming bank along with shipping documents. Once the bank confirms the documents, the seller is then paid. An alternative method is to use a bank guarantee in place of a letter of credit. It is normally at the seller’s discretion which method of payment is used.
The function of the MT799 is simply to assure the seller that the buyer does have the necessary funds to complete the trade.