IBAN vs. SWIFT/BIC Codes: Everything You Need to Know for International Transfers
🔒 What Are IBAN and SWIFT Codes?
- IBAN (International Bank Account NumberBank Account Number bank-account-number A customer’s account number used in ACH and eCheck transactions.) is a unique code used to identify an individual bank account across borders.
- SWIFT/BIC (Society for Worldwide Interbank Financial Telecommunication / Bank Identifier Code) identifies the recipient’s bank during international transactionsTransactions transactions Interactions where value is exchanged for goods or services..
Both are vital for making international money transfers accurately and efficiently.
📊 IBAN vs SWIFT/BIC: Key Differences at a Glance
| Feature | IBAN | SWIFT/BIC |
|---|---|---|
| Full Form | International Bank Account Number | Society for Worldwide Interbank Financial Telecommunication / Bank Identifier Code |
| Purpose | Identifies an individual account in cross-border payments | Identifies the recipient’s bank in international transactions |
| Scope of Use | Primarily in Europe, Middle East, Caribbean | Global |
| Structure | Up to 34 alphanumeric characters | 8 to 11 alphanumeric characters |
| Identifies | An individual bank account | A bank and its branch |
| Example | GB29 NWBK 6016 1331 9268 19 (UK) | UNCRITMMXXX (UniCredit Bank, Italy) |
| Length | Variable (up to 34 characters) | 8 or 11 characters |
| Used in | EU, UK, Middle East, Caribbean, parts of Africa | Worldwide |
| Found on | Bank statement, online banking portal, IBAN calculator | Bank statement, online banking, bank’s website |
| Governing Body | ISO 13616 (iban.com) | ISO 9362 (swift.com) |
| Used by | Banks, financial institutions | Banks, brokers, clearinghouses, service providers |
🤔 Why Are These Codes Important?
Before IBAN and SWIFT standards, international payments often ended up in the wrong account or were delayed due to inconsistent account number formats across countries.
These systems provide:
- Faster processing times
- Fewer transfer errors
- Better securitySecurity security Measures used to protect transaction data from fraud and cyber threats. and transparency
🔐 How to Find Your IBAN and SWIFT Code
- IBAN: Usually found on your bank statement or online banking portal. You can also use your bank’s official IBAN calculator.
- SWIFT/BIC: Available on your bank statement, your bank’s website, or by contacting customer support.
❌ Do All Countries Use IBAN?
No. While over 70 countries use IBAN (mostly in Europe, the Middle East, and parts of Africa and the Caribbean), others like the United States and Canada do not. However, these countries still accept IBAN-formatted payments and use SWIFT codes for international transactions.
🌍 Official Sources
- IBAN information: https://www.iban.com/structure
- SWIFT standards: https://www.swift.com/standards/data-standards/iban-international-bank-account-number
✉️ Final Tips for Sending Money Abroad
- Double-check both IBAN and SWIFT codes before sending
- Use an official source or your bank’s portal to verify details
- Always confirm with your recipient
Having both IBAN and SWIFT/BIC codes handy ensures your money gets to the right place, without costly errors or delays.
Vibhu Arya is a fintechFintech fintech
Short for financial technology, refers to tech-enabled innovation in financial services. and payments expert with 15+ years of experience simplifying how money moves across digital and retail ecosystems. He’s led strategy and partnerships at Citibank, Adyen, and IKEA, and helped scale fintech startups (Snapdeal, iPaylinks) to $1B+ valuations. Vibhu’s expertise spans cards, crypto, cross-border, and real-time payments. He is the founder of PaymentsPedia.com, where he writes about the future of payments.
📧 vibhu@paymentspedia.com | LinkedIn