If you have ever attempted to send money internationally, you have almost certainly got asked for an IBAN code. They get used in some countries but not in others. Still unsure? Relax. This article walks you through all you need to know about IBAN Codes.
What is IBAN?
IBAN stands for International Bank Account Number. The objective here is to assist banks in ensuring that bank remittance gets appropriately completed. This system is in use across Europe and parts of the Middle East, North Africa, and the Caribbean.
For international remittance services, banks and other payment service providers prefer to use IBANs. It is because these codes include essential information that allows payments to get delivered to the correct account. While sending or receiving cash from abroad, you need to submit an IBAN.
It typically includes all the country, bank, and account information required to transfer money internationally. IBAN codes are made of 34 letters and numbers that have been agreed upon internationally. This code is further broken down as follows:
- Country Code: 2 letters
- Control Code: 2 numbers
- Remaining: The domestic bank identifier and account number must be up to 30 letters and digits long.
IBAN, BIC, SWIFT – What is the difference?
Banks use SWIFT codes, BICs, and IBANs to identify the remittance destination. However, depending on the location of the banks involved, the method and details required may vary.
A SWIFT (Society for Worldwide Interbank Financial Telecommunication) code identifies the country and bank you need to remit money, whereas an IBAN identifies the bank account required. In some countries, a BIC Code (Business Identifier Code) gets widely used. It is still used alongside IBAN and other account number forms by the traditional financial services industry as a matter of convention.
How to locate an IBAN code?
Finding the correct IBAN code is critical. If you enter an invalid IBAN code, your money gets refunded or sent to the wrong account. Fortunately, locating the IBAN code you want is not easy. Log in to your online banking system or check your statement to discover them. If you are still unsure or cannot find it, call your bank to double-check so that you get it right the first time.
Suppose you do remittance transfer overseas. The best way to receive the IBAN code is to ask the recipient for the information. Ask them to phone their bank and request it if they do not have it. If you cannot reach the beneficiary or your bank, search for your desired IBAN online. A Bank Account must get converted into an IBAN using one of several online calculators. You only need to provide the bank's code and account number.