Two timing concepts in cross-border payments cause endless customer confusion: value date and settlement date. They often coincide, but when they diverge it matters for interest calculations, dispute timelines, and treasury management.
Value date is the date on which the funds become "good" for the beneficiary — interest starts accruing and the beneficiary can withdraw or onward-pay. This is what appears in field 32A of an MT103.
Settlement date is the date the underlying RTGS movement actually occurs between the correspondent banks. For most modern flows, value date = settlement date. But not always.
Forward value: a payment instructed today but with value date in the future. Used for term contracts, FX forwards, scheduled trade settlements. The funds move now (settlement), become good later (value).
Back value: a payment with a value date in the past. Used by banks to correct booking errors — e.g. "credit the beneficiary as if the funds arrived yesterday". Tightly regulated; not customer-initiated.
For interest-bearing accounts, value date drives the interest calculation. A wire credited 14:00 with value-date today earns interest for the full day; with value-date tomorrow, none today.
For FX trades: spot is typically T+2 value date — trade today, settle in two business days. For SWIFT MT103 settling an FX trade, the value date matches the agreed spot date.
Yes for forward-dated wires (instruct your bank to send for value [DATE]). Back-value is normally only allowed for bank error correction.
TOM = tomorrow = T+1 value date. SPOT = T+2. Used in FX deals and the corresponding SWIFT MT103 settlement.
The beneficiary bank received the funds today but their cut-off had passed — they will post to the account tomorrow with today's value, so interest accrues correctly even though the visible posting is tomorrow.
Indirectly — GPI status timestamps are absolute (when did this hop happen) not value-date relative. But the field 32A value date helps you anticipate when the credit should be visible.