Your bank is asking for the purpose of payment.
For a Canadian business wire, this is usually not a random question.It means the payment needs a clearer commercial explanation before it can be released or reported cleanly through the bank’s compliance process.
Most businesses do not have a payment problem because the money is missing. They have a payment problem because the bank will not move it forward without a usable explanation. If the description is weak, inconsistent with the invoice, or missing entirely, the wire can stall while the bank asks for clarification.
Why the bank is asking
International business wires above normal operating thresholds trigger compliance and reporting checks. The bank needs to understand what the payment is for, who it relates to, and whether the supporting paperwork matches the transaction narrative.
What “purpose of payment” actually means
This is not a philosophical question. The bank usually wants a short, commercially precise explanation tied to the invoice, supplier, goods or services, and payment reason. Generic language such as “business payment” is often too weak.
What usually works
The most useful response links four things clearly: who is being paid, what the payment covers, which invoice or shipment it relates to, and why this amount is being sent now.Consistency between the wire reference, invoice, and explanation matters more than length.
When it becomes a real hold
If you have already answered and the payment is still not moving, the issue is no longer just a description problem.It becomes a compliance hold that needs ownership, document review, and sometimes a formal trace or escalation through the payment chain.
The wrong explanation slows the payment. The right explanation shortens the argument.