MT752 (Authorization to Pay, Accept or Negotiate)

MT752 is a SWIFT message standard used in documentary credit transactions, specifically an 'Authorization to Pay, Accept or Negotiate'. It is typically sent by the issuing bank to a nominated bank (such as the advising bank, negotiating bank, or paying bank), authorizing the latter to pay the beneficiary, accept a draft, or negotiate upon receipt of documents complying with the credit terms. It is commonly used in letter of credit settlements when the issuing bank needs to issue a payment authorization to a nominated bank, for example, when documents are compliant or the applicant has paid and taken up the documents. Key points: MT752 is not the payment itself but an authorization instruction; the nominated bank must strictly verify that the scope of authorization aligns with the credit terms; if there is a conflict between the authorization and the credit, it should be handled with caution. Unlike MT799 (free-format message), MT752 is a dedicated format with clear legal effect; unlike MT754 (advice of payment), MT752 is an authorization while MT754 is a notification of payment made. Foreign trade practitioners should understand its nature as an interbank instruction and avoid confusing it with direct payment from the customer.