When making or receiving international payments, you may be asked to provide an IBAN, BIC, or SWIFT code. Here's what each one means.
IBAN (International Bank Account Number)
The IBAN is the international bank account number used when making or receiving international payments. It consists of the following components:
- Country Code (2 letters) — identifies the country where your bank is located.
- Check Digits (2 digits) — used for validation.
- Bank Code (4 characters) — identifies the bank.
- Bank Account Number (16 digits) — your unique account number.
BIC / SWIFT Code
The BIC (Bank Identifier Code), also known as the SWIFT code (Society for Worldwide Interbank Financial Telecommunication), is an international standard for identifying banks. It is used for international bank transfers, especially when sending money between countries.
A BIC/SWIFT code consists of 8 to 11 characters, broken down as follows:
- Bank Code (4 characters) — identifies the bank or financial institution.
- Country Code (2 characters) — identifies the country where the bank is located.
- Locality Code (2 characters) — identifies the specific branch or location.
- Branch Code (3 characters, optional) — identifies a specific branch within the bank.
Together, the BIC/SWIFT code ensures that international transactions are accurately routed to the correct bank and branch. Always make sure to provide the correct code when sending or receiving payments.