MT 742 Explained: Reimbursement Claim

MT 742 is the other half of the reimbursement mechanism: the bank that has already paid, accepted, or negotiated documents under an LC claims reimbursement from the reimbursing bank named in the issuing bank's MT 740 authorization.

Key fields

• 20 — Sender's Reference: Reference for this claim.
• 21 — Related Reference: Links back to the documentary credit and the authorization to reimburse it's claiming against.
• 32B — Currency/Amount Claimed: How much is being claimed back.
• 57a — Account With Institution: Where the reimbursement should actually be credited.
• 72 — Sender to Receiver Information: Any further details supporting the claim.

Because the reimbursing bank never sees the underlying documents, MT 742 relies entirely on the claiming bank's word that it has honoured a compliant presentation — the reimbursing bank's role is purely mechanical, paying against a valid authorization on file.