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Q238: In the context of wire transfers, what is a "Cover Payment"?

A
A wire transfer where the ordering and beneficiary institutions are in the same country.
B
A transfer comprising multiple individual wires sent in a batch file.
C
A wire transfer combining a direct payment message to the beneficiary institution, with a separate funding instruction sent through intermediary institutions.
D
A payment made to cover the costs of a failed transaction.
✅ Correct Answer: C
Cover Payment refers to a wire transfer that combines a payment message which the ordering financial institution sends directly to the beneficiary financial institution with the routing of the funding instruction (the cover) from the ordering financial institution to the beneficiary financial institution through one or more intermediary financial institutions.
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