When an MT103 is rejected, the SWIFT network typically returns an MT103 REJT or an MT199 with a reject code. Five problems account for the majority of all rejections.
Error 1: Invalid or missing field 57A BIC. The beneficiary bank BIC is the routing target — a typo or a decommissioned BIC means the network has nowhere to send the payment. Fix: verify the BIC on the SWIFT directory or via the Ohmyfin SWIFT/BIC lookup.
Error 2: Malformed IBAN in field 59. The IBAN must pass MOD-97 check digits. Most banks validate at submit time, but cross-border wires from non-IBAN countries (US, Canada, Australia) skip this check. Fix: use any IBAN validator before sending.
Error 3: Empty or unparseable field 70. Some correspondent banks (notably in the US and Switzerland) require remittance information. An empty field 70 triggers manual review or rejection. Fix: always populate with at least the purpose of payment, even for personal wires ("gift to family", "salary").
Error 4: Charge-code mismatch with destination scheme. SEPA accepts only SLEV. Many domestic schemes reject OUR. Fix: when in doubt, use SHA — it is universally accepted.
Error 5: Value date in the past or too far in the future. Field 32A value date should be the next valid business day in the destination currency. Banks usually default this; corporates submitting MT103 via host-to-host must compute it correctly. Fix: align with the destination currency calendar.
Reject codes you may see in the response: AC01 (incorrect account), AC04 (closed account), BE01 (inconsistent name/account), CH09 (combination of arguments invalid), RR04 (regulatory reason — usually sanctions). Each has a specific remediation path.
A reject (MT103 REJT) happens before the funds reach the beneficiary. A return (MT103 RETN) happens after the beneficiary bank received funds but cannot credit (e.g. account closed) — funds come back via a new MT103 in the reverse direction.
If the reject came before debit, no debit happened. If after debit, refund timing depends on the reject code — typically same day to 3 business days.
GPI tracking returns the RJCT status code. The reject reason is typically in the bank-to-bank message and your bank can share it with you.
Sender-bank fees are sometimes refunded for legitimate format issues; correspondent fees rarely are. Push back via the complaints team.