From the course: Understanding Cross-border Payments
Join today to access over 24,900 courses taught by industry experts.
Serial and cover payments
From the course: Understanding Cross-border Payments
Serial and cover payments
Have you ever wondered how cross-border payments are settled? Let's explore the serial and cover payment methods, key components of correspondent banking. SWIFT serial and cover payment stem from the two primary methods used to settle transactions: the serial method and the cover method. In the serial method, a single message is initiated by the sender to settle the funds moving from one party to the next in the payment chain until it reaches the beneficiary bank. In the cover method, two messages are initiated by the sender. One message, called an announcement, informs the creditor agent that funds are on the way. The other, called a cover message, move the funds between correspondent accounts. When using the serial method, the agent or bank transfers funds by initiating one message, the PACS.008 or MT103 serial for customer transfers or the PACS.009 or MT202 serial for financial institution transfers. As illustrated, the debtor agent sends an MT103 to its correspondent who sends…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.