Purpose of payment describes the commercial or other reason funds are being transferred, such as settlement of a supplier invoice. Providers and financial institutions may use it for routing, compliance, reporting, and review, and may request documents that support the stated purpose.
Quick reference for Purpose of payment
| Check | What it means for the transaction |
|---|---|
| Category | Global B2B payment operations |
| Record to keep | Keep the instruction, party and account identifiers, validation result, timestamps, institution references and reconciliation outcome. |
| Do not infer | Initiation, processing, clearing and settlement are different events. One status should not be used as proof of another. |
Purpose of payment and nearby terms
- Source of funds: Source of funds explains where the money for a specific transaction or business relationship came from, such as operating revenue, investment, asset sale, or financing.
