May Add in SWIFT Message
May Add in SWIFT Message
I go back to before SWIFT was even a form of communication and the term May Add always meant May Add Confirmation at Beneficiary's Request. When the fields for SWIFT were created field 49 options of Confirm, May Add, and Without were intended to mean either add confirmation, may add confirmation at beneficiary's request or do not add confirmation. Some bankers seem to be reading these instructions as for May Add to mean the nominated bank can add confirmation or not add confirmation if they want to even if beneficiary does not want the confirmation. Please comment.
May Add in SWIFT Message
Larry,
My impression is that -whatever the 'rights & wrongs'- banks are increasingly just automatically adding their confirmation (presumably for income reasons) and then rescinding it on those rare ocasions when the beneficary (if paying the charges) complains it does not want confirmation.
Jeremy
My impression is that -whatever the 'rights & wrongs'- banks are increasingly just automatically adding their confirmation (presumably for income reasons) and then rescinding it on those rare ocasions when the beneficary (if paying the charges) complains it does not want confirmation.
Jeremy
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JudithAutié
- Posts: 195
- Joined: Fri Apr 05, 2019 5:20 pm
May Add in SWIFT Message
I have heard both sides of the story -- from the banks' point of view and also from the beneficiaries.
It is almost "standard operating procedure" to automatically add the bank's confirmation when Mayadd is indicated. This can be due to the automation of doccredit processing (altho certainly income is not to be disregarded
) The software has to "automatically" decide whether or not the credit is to be confirmed. It is easier to process a withdrawal of confirmation than to add it. Also the charges automatically are generated according to the info in that field.
However beneficiaries can and do object to unwanted confirmation, particularly if they feel the costs are too high. But they should take into account that the higher the costs, the more risky the bank has considered the transaction. So maybe the beneficiaries should take another look at the need for confirmation.
Regards
Judith
P.S. I also started in doccredits before swift -- and can't remember getting many credits with "mayadd" then -- either you did or you didn't give instructions to confirm. Only in rare instances did you get "add your confirmation at beneficiary's request and expense" -- and then we waited for bene's official request
It is almost "standard operating procedure" to automatically add the bank's confirmation when Mayadd is indicated. This can be due to the automation of doccredit processing (altho certainly income is not to be disregarded
) The software has to "automatically" decide whether or not the credit is to be confirmed. It is easier to process a withdrawal of confirmation than to add it. Also the charges automatically are generated according to the info in that field.However beneficiaries can and do object to unwanted confirmation, particularly if they feel the costs are too high. But they should take into account that the higher the costs, the more risky the bank has considered the transaction. So maybe the beneficiaries should take another look at the need for confirmation.
Regards
Judith
P.S. I also started in doccredits before swift -- and can't remember getting many credits with "mayadd" then -- either you did or you didn't give instructions to confirm. Only in rare instances did you get "add your confirmation at beneficiary's request and expense" -- and then we waited for bene's official request
May Add in SWIFT Message
May Add was like when a credit was issued and said "in red ink" This is a Red Clause Credit. It was understood the nominated bank could give up to 100% Advance against a simple receipt. May Add was the abbreviation for May Add at Beneficiary's Request and was my understanding of why SWIFT used that abbreviation. Also if the beneficiary says he does not want the confirmation, do you go back to the issuing bank for your charges? That to me is the difference between Confirm and May Add.