Bank-to-Bank Procedures check0 / 1 answered · 0 correct
Check 1
Does every SBLC require the receiving bank to issue a BPU first?
Bank Payment Undertaking (BPU)
Learn why the term is real but can mean different things in different markets.
Formal supply-chain-finance use
The Global Supply Chain Finance Forum uses Bank Payment Undertaking for a technique where, after a matched transaction on a B2B network, a bank may issue a payment undertaking for a corporate beneficiary or another bank, potentially supporting financing.
Reviewed: September 2026Standards and bank policy can change.How MyGreed classifies proceduresOfficial-source directory
Provider-market use
In some third-party SBLC/BG procedures, “BPU” is used for a receiving bank’s undertaking to pay a provider fee after specified conditions, such as receipt/authentication of MT760. That is a negotiated transaction structure, not a universal SBLC rule.
BPU is not an MT number
There is no dedicated SWIFT message called “MT BPU.” If payment-undertaking wording is placed in MT799, that is an undertaking expressed through a free-format message; the content and legal effect still require bank/legal review.
Why banks may refuse
A true bank payment undertaking can expose the bank to payment risk. The bank may require credit approval, cash cover, acceptable wording, legal/compliance review and an approved product.
Source / standards noteProcedure terminology can be market-specific. MyGreed distinguishes formal rules/message functions from bank policy and negotiated transaction steps.
Remember thisBPU can be a real bank obligation, but “MT799 BPU before MT760” is not a universal ISP98 or SWIFT requirement.
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