What is a payment purpose code? Why some countries ask why you're sending money
By SendPay Business · · 2 min read
A payment purpose code is a short code that tells the receiving bank why money is being sent, such as paying for goods, paying a salary or supporting family. Some countries require one on international transfers so their banks can report payments to the central bank and check them against local rules.
Where you'll meet them
- Sending money to some countries in Asia and the Middle East, including India and the United Arab Emirates.
- Paying suppliers or staff abroad, where the code shows the payment is for trade or wages.
- Filling in a transfer form that asks for a reason for payment.
If it's missing or wrong
The receiving bank may hold the payment and ask for more information, return it, or in some places report it. That can add days to the transfer and sometimes extra fees.
Finding the right code
The person you're paying can usually get the correct code from their own bank. Your provider may also show a list of reasons to choose from when you send.
Where SendPay fits
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.