Yes, it is possible to track SWIFT payments to some extent. SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global financial messaging system that facilitates cross-border payments between banks. When a SWIFT payment is initiated, it generates messages that contain information about the transaction details, including the sender, receiver, amount, and transaction reference number.
Tracking via sender bank
The sender bank has visibility into the status of the SWIFT payment during key stages of processing. When a SWIFT payment is first sent, the sender bank can see that the payment instructions have left and provide the SWIFT reference number. As the payment passes through the correspondent banking network, the sender bank can track its progress and confirm when it reaches the recipient bank. However, once the funds arrive at the recipient bank, the sending bank no longer has visibility.
Tracking via recipient bank
The recipient bank has visibility when the SWIFT payment arrives but does not receive detailed tracking information on the payment’s journey. When the funds arrive, the recipient bank has access to the transaction details such as sender name, account number, amount, and SWIFT reference. The recipient bank must match the incoming transaction to the account holder by verifying details like name and account number. However, the recipient bank cannot see the path the payment took before arriving.
Tracking via SWIFT network
While banks only have limited visibility, SWIFT itself has centralized visibility and can track the full status of a payment within its network. SWIFT provides reference numbers that banks can use to route and track transfers. As the payment travels between correspondent banks, each institution must log the transaction details which SWIFT can then piece together. Using their messaging tracking system, SWIFT provides end-to-end tracking and status updates to the sending and receiving banks.
Challenges in tracking
While SWIFT payments can be tracked to an extent, there are some challenges:
- SWIFT only tracks payments while within its network – once a payment reaches the recipient bank, the SWIFT tracking ends.
- Each intermediary bank in the transmission chain can generate a new tracking reference, making end-to-end tracking difficult.
- Banks may not always provide the SWIFT tracking details to end customers due to internal processes.
- Status updates may be delayed as tracking information filters back through the correspondent banks.
Tips for tracking SWIFT payments
Here are some tips for tracking a SWIFT payment:
- When initiating a payment, get the SWIFT reference from your bank and retain for tracking purposes.
- Contact your bank to request periodic tracking updates using the SWIFT reference.
- Ask your recipient contact to confirm when funds are received and credited.
- For high-value time-critical payments, request value-added services like SWIFT gpi which offers enhanced tracking.
SWIFT gpi payments
SWIFT’s global payments innovation (gpi) service provides faster and more transparent cross-border payments. Features include:
- Tracking of payments from end-to-end within SWIFT network
- Transaction status updates to banks within minutes
- Unmodified remittance information flows
- Predictable credit to recipient account within one business day
- End-to-end payments tracking via SWIFT’s gpi Observer tool
With SWIFT gpi payments, banks can more easily track status with the gpi tracking ID and provide updates to customers. Payments are faster with same day use of funds delivery. The gpi Observer tool lets anyone enter a tracking ID to follow the payment path.
Tracking payment status codes
Within SWIFT messages, a 3-digit payment status code indicates the stage of processing. Common status codes include:
Status code | Meaning |
---|---|
101 | Payment initiated |
102 | Payment processed |
103 | Funds acknowledged by recipient bank |
104 | Funds made available to recipient |
At each step along the payment chain, banks are required to log a status code in the SWIFT message header which enables more granular tracking of the payment’s progress.
Tracking steps
Here are the typical steps involved in tracking a SWIFT payment:
- Sender initiates payment via sending bank and receives SWIFT reference
- Sending bank forwards payment details and credit via SWIFT network
- SWIFT tracks payment status between correspondent banks
- Recipient bank receives payment and credits beneficiary’s account
- Status updates filter back to sending bank and sender
- SWIFT tracking ends once beneficiary account is credited
The time for funds to be confirmed and made available to the recipient will vary depending on the banks and regulatory requirements. Faster services like SWIFT gpi provide near real-time tracking and availability.
Payment confirmation
To confirm when a SWIFT payment has been successfully completed, here are some steps:
- Check for a status update from your sending bank that funds are released or recipient has been credited.
- Ask the recipient to validate the funds have landed in their account.
- For gpi payments, check the gpi Observer tool using the tracking ID.
- Look for advice or confirmation note from the recipient bank.
Tracking a payment provides visibility into its progress. However, keep in mind that bank practices can still vary. Always confirm with the recipient that the funds have been received as the final payment confirmation.
Troubleshooting delays or non-receipt
If a SWIFT payment is delayed or fails to reach the recipient, here are some troubleshooting tips:
- Check with your bank regarding the transaction status via the SWIFT reference.
- There may be intermediary bank issues – SWIFT can assist in identifying where payments fail.
- Non-receipt issues may indicate incorrect recipient account details were provided.
- Follow up with the recipient bank to trace and resolve issues.
- Request SWIFT delivery confirmation to validate credit.
- Resubmit payment with corrected details if required.
SWIFT offers resolution services to track payments and investigate transaction delays or failure to deliver. If untraceable, a payment recall and replacement can be initiated.
Key takeaways
- SWIFT provides reference numbers and status codes that allow tracked payments.
- Sending bank has visibility up to when funds are received by recipient bank.
- Recipient bank confirms funds arrival but has limited tracking information.
- SWIFT central tracking covers payment path between banks.
- SWIFT gpi enhances tracking speed and transparency.
- Always validate recipient account credit as final confirmation.
In summary, SWIFT payments can be tracked to an extent using bank and SWIFT provided tools. Confirming the recipient account is credited remains the final proof of payment completion.