SWIFT Letter of Credit Message Types: MT700, MT760 and Related MTs
Trade finance notice: SWIFT message types identify bank-to-bank message formats. They do not, by themselves, prove that a letter of credit, standby letter of credit or guarantee is genuine, operative, transferable, payable or monetizable. The underlying instrument, issuing bank, governing rules, authentication, fields and transaction documents still need review.

SWIFT Letter of Credit Message Types: MT700, MT760 and Related MTs

FG Capital Advisors | Trade Finance, Documentary Credits and Bank Undertakings

What SWIFT Letter of Credit Messages Are

SWIFT MT messages are standardized bank-to-bank message formats. In trade finance, the main family is Category 7, which covers documentary credits, guarantees and standby letters of credit. These messages allow banks to issue, amend, advise, reimburse, refuse, reduce, release or communicate about LCs, SBLCs and guarantees.

The two message types most people mention are MT700 and MT760. MT700 is used for a documentary credit. MT760 is used for a demand guarantee or standby letter of credit. Since SWIFT’s SR 2020 changes, guarantees and standby L/Cs should use MT760 rather than MT700.

Practical point: MT700 and MT760 are message formats. They are not marketing labels. A real bank undertaking still depends on bank authentication, correct fields, applicable rules, issuer authority, sanctions clearance and the exact undertaking text.

Core SWIFT LC, SBLC and Guarantee Messages

Message Type Short Name Practical Definition
MT700 Issue of a Documentary Credit Used by an issuing bank to send the terms and conditions of a documentary letter of credit to an advising bank.
MT701 Continuation of MT700 Used when the MT700 needs continuation space for the documentary credit terms.
MT705 Pre-Advice of a Documentary Credit Gives advance notice that a documentary credit will be issued. It is not the full operative LC.
MT707 Amendment to a Documentary Credit Used to amend an existing documentary credit.
MT708 Continuation of MT707 Used when the amendment text needs additional continuation space.
MT710 / MT711 Advice of a Third Bank’s Credit Used when a bank advises a documentary credit issued by another bank. MT711 is the continuation message.
MT720 / MT721 Transfer of Documentary Credit Used for a transferable credit where the first beneficiary transfers rights to a second beneficiary. MT721 is the continuation message.
MT730 Acknowledgement Confirms receipt or handling of a documentary credit message.
MT732 Advice of Discharge Communicates that the issuing bank is discharged from liability under the credit.
MT734 Advice of Refusal Used when documents are refused, typically because discrepancies have been identified.
MT740 Authorization to Reimburse Authorizes a reimbursing bank to reimburse claims under a documentary credit.
MT742 Reimbursement Claim Used by a claiming bank to request reimbursement from the reimbursing bank.
MT747 Amendment to Reimbursement Authorization Amends a prior reimbursement authorization.
MT750 Advice of Discrepancy Communicates discrepancies found in presented documents.
MT752 Authorization to Pay, Accept or Negotiate Authorizes another bank to pay, accept drafts or negotiate under the credit.
MT754 Advice of Payment, Acceptance or Negotiation Advises that payment, acceptance or negotiation has taken place.
MT756 Advice of Reimbursement or Payment Advises reimbursement or payment under the documentary credit.
MT759 Ancillary Trade Structured Message A structured trade message used where a more specific Category 7 message is not suitable. It is more structured than MT799.
MT760 Issue of a Demand Guarantee or Standby Letter of Credit Used to issue or request the issuance of a demand guarantee or SBLC. This is the key message type for SBLCs and bank guarantees.
MT761 Continuation of MT760 Used with MT760 where the undertaking wording requires continuation space.
MT765 Guarantee or SBLC Demand Used when a demand is made under a guarantee or standby letter of credit.
MT767 Amendment to a Demand Guarantee or SBLC Used to amend an existing demand guarantee or standby letter of credit.
MT768 Acknowledgement of Guarantee or SBLC Message Acknowledges receipt or handling of a guarantee or SBLC message.
MT769 Advice of Reduction or Release Advises reduction, release or similar change to the outstanding amount or liability under a guarantee or SBLC.
MT775 Amendment Message in Guarantee or SBLC Flow Used in guarantee or standby workflows for amendment-related communication, depending on bank system and flow.
MT785 Non-Extension Notification Used to notify non-extension of a guarantee or standby letter of credit where the undertaking has an extend-or-pay style mechanism.
MT786 Demand Refusal Used to refuse a demand made under a guarantee or standby letter of credit.
MT787 Amendment Response Used for response communication linked to a guarantee or standby amendment.
MT798 Proprietary / Corporate-to-Bank Trade Message Often used as an envelope message in corporate-to-bank trade finance flows, with specific fields or bank-to-bank MT content included.
MT799 Free Format Message Used for free-format bank-to-bank information where no specific message type applies. It should not be treated as a bank undertaking unless the content and authentication support that conclusion.

MT700 vs MT760

MT700

Documentary Letter of Credit

MT700 is used for a commercial documentary credit. It sets out the LC terms, including applicant, beneficiary, amount, expiry, shipment, documents required, availability, confirmation and charges.

MT760

SBLC or Demand Guarantee

MT760 is used for a standby letter of credit or demand guarantee. It contains the undertaking language and is the correct format for guarantee or SBLC issuance after the SR 2020 changes.

Common Misunderstanding

MT799 is often abused in broker conversations. It is a free-format message, not a substitute for an operative LC, SBLC or demand guarantee. A serious transaction should identify the exact message type, the issuing bank, the advising or confirming bank, the applicable rules, the undertaking text and the payment conditions.

For documentary credits, the governing rule set is often UCP 600. For standby letters of credit, the governing rule set may be ISP98 or UCP 600, depending on the wording. For demand guarantees, URDG 758 may apply where incorporated. The SWIFT message format and the legal rule set are separate things.

Footnotes and Sources

Disclosure: this article is provided for informational purposes only and does not constitute legal advice, bank advice, compliance advice, investment advice, an offer to issue a letter of credit, or a commitment to arrange any SWIFT message. Any LC, SBLC, bank guarantee or reimbursement structure should be reviewed by qualified trade finance counsel and the relevant banks.