Before transactions are set to take place between two banks, it is important for the sending bank to send confirmation to the receiving bank. This message is typically done through a Swift MT799. This type of communication between two banks does not constitute the financial transaction itself but simply states that this transaction is scheduled to take place. However, it is not a promise that the funds will be transferred. It could still be cancelled.
The First Step in the Process
The Swift MT799 cash account is just the first step in the process. If you need to guarantee the funds are in your account, this communication will indicate that the funds will be deposited into the account in the near future. Once this communication has been passed between the two banks, a contract can be drafted and signed and a letter of credit can be issued by the receiving bank. This is exactly what individuals need to complete large financial transactions.
Secure the Transaction
A Swift MT799 is designed to secure a transaction before any funds need to trade hands. The seller obtains proof that the buyer has the funds to back up their offer, while the buyer receives confirmation that they will receive the product or service they are buying. The MT799 cash account serves as solid proof that the transaction can take place because both parties can carry out their side of the bargain.