ediverse

Type to search across standards, messages, tools and glossary.

ediverse Explore the platform

Spotlight PEPPOL BIS Billing 3.0 The EU e-invoicing mandate is here — France Sept 2026, Belgium Jan 2026, Germany 2025.

— 01

Foundations

— 02

Standards

— 03

Flagship messages

— 04

Tools

MT742 — Reimbursement Claim

The post-negotiation reimbursement request. Once the negotiating bank has paid the beneficiary on conforming documents, it claims reimbursement from the reimbursing bank nominated by the issuing bank.

Purpose

In the classic chain of a USD LC, the issuing bank (e.g. BNP Paribas) is not a Fedwire/CHIPS member, so it nominates a US reimbursing bank (Chase, JP Morgan) holding its USD account. When the negotiating bank (ICBC Beijing) has paid the beneficiary and wants to be reimbursed, it sends MT742 directly to the reimbursing bank (Chase NY) with instructions to debit the BNP Paribas account.

The reimbursing bank, on receiving an MT742 that complies with the prior authorisation received from the issuing bank (MT740, Authorisation to Reimburse), settles via MT202 on Fedwire or CHIPS. This flow is what crystallises "value" for the beneficiary after documentary matching.

Tag structure

MT742 is a short flat message with about a dozen tags. Structural tags:

  • :20: Negotiating-bank claim reference.
  • :21: Originating MT700 reference.
  • :52A: Issuing Bank BIC.
  • :32B: Nominal claim amount.
  • :33B: Principal Amount Claimed (net after any commissions).
  • :34A: Claim date and amount (with reimbursement value).
  • :73A: Charges (compliance declaration).
  • :72: Sender to Receiver Information with routing instructions.

Key tags

TagNameUsage
:20:Sender's ReferenceUnique claim reference.
:21:DC NumberOriginating MT700 reference.
:52A:Issuing BankIssuing bank BIC (responsible for reimbursement).
:32B:Principal AmountFace amount claimed.
:33B:Principal Amount ClaimedNet amount after computation.
:34A:Total Amount ClaimedValue date + total amount to reimburse.
:73A:Charges DeclarationDocumentary compliance declaration (standard text).
:72:Sender-Receiver InfoRouting instructions (nostro account, correspondent bank).

Real-world example

After conforming delivery of the 1,000 cartons and favourable document examination, ICBC Beijing pays Guangzhou Textile Exports and sends this reimbursement claim to Chase New York, BNP Paribas' USD reimbursing bank, value 20 July 2026:

text mt742-reimbursement.txt 
{1:F01ICBKCNBJAXXX0000000000}{2:I742CHASUS33AXXXN}{3:{108:RMB20260720001}}{4:
:20:RMB20260720001
:21:LC20260515001
:31C:260515
:52A:BNPAFRPPXXX
:32B:USD150000,00
:33B:USD150000,00
:71B:NIL
:34A:260720USD150000,00
:73A:DOCUMENTS HAVE BEEN EXAMINED AND FOUND TO COMPLY
WITH THE TERMS AND CONDITIONS OF THE CREDIT
:72:/REC/PLEASE REMIT TO ICBC BEIJING
//VIA OUR NOSTRO ACCOUNT 12345678
//AT CHASE NEW YORK
-}
  • :20:RMB20260720001 — ICBC claim reference.
  • :21:LC20260515001 — originating MT700 reference.
  • :52A:BNPAFRPPXXX — issuing bank (responsible for funding the Chase account).
  • :32B:USD150000,00 + :33B:USD150000,00 — nominal and net amounts (no commission here).
  • :34A:260720USD150000,00 — value date 20 July + total amount.
  • :73A: — DOCUMENTS HAVE BEEN EXAMINED AND FOUND TO COMPLY declaration (mandatory under URR 725 art. 6).
  • :72:/REC/PLEASE REMIT TO ICBC BEIJING//VIA OUR NOSTRO ACCOUNT 12345678 — payment routing.

Common pitfalls

  • Missing MT740 — the reimbursing bank only acts on a prior MT740 from the issuing bank. Without that authorisation, MT742 is rejected via MT744.
  • Amount exceeds authorisation — :33B: cannot exceed the amount authorised in MT740. A claim above is partially reimbursed or rejected.
  • Missing :73A: declaration — without it, the reimbursing bank lacks the contractual assurance (URR 725 art. 6). Likely refusal.
  • Incomplete :72: routing — without specifying the nostro account and ultimate bank, the reimbursing bank cannot execute the MT202.
  • Back-value date — the :34A: date cannot be earlier than MT742's issue date. A back-value triggers an interest dispute.
  • MT740 — Authorisation to Reimburse, sent by the issuing bank to the reimbursing bank ahead of any claim.
  • MT744 — Notice of Non-Conforming Reimbursement Claim, on refusal.
  • MT747 — Amendment to an Authorisation to Reimburse.
  • MT202 — General Financial Institution Transfer, the actual payment flow following the claim.
  • MT754 — Advice of Payment / Acceptance / Negotiation, sent in parallel to the issuing bank.