IBAN code

An IBAN number, also referred to as International Bank Account Number, is a special code given to a bank account to make international payments easier. It's a standardised code typically made up of 34 characters, which can be letters or numbers. An IBAN number is used to identify the recipient's bank and their specific bank account in a particular country. The structure of an IBAN may vary from country to country, but it usually includes the country code, check digits, bank code, branch code (if applicable), and account number. 

The IBAN number consists of maximum 34 characters and is structured to identify a specific account.  

The IBAN format can vary slightly depending on the country, but in general, it follows the order presented below: 

Country code: The IBAN number begins with a country code, consisting of the first two letters that indicate the country where the account is located. For instance, "GB" represents the United Kingdom, "FR" represents France, and "DE" represents Germany. 

Check digits: To ensure the accuracy of the IBAN number, the following two digits are check digits. These digits are calculated using a mathematical algorithm and serve to detect errors in the account number. 

Bank Identifier: The bank identifier is a series of characters used to identify the specific bank or financial institution where the account is held. The length and format of the bank identifier can differ from country to country. 

Branch code: The branch code is an optional element that helps identify the particular branch of the bank where the account is located. Typically, it consists of four characters, although its length may vary depending on the country. 

Account number: The account number serves as a unique identifier for the specific account within the bank. While it can be up to 30 characters long, the length varies according to the requirements of each country's banking system. 

The last three digits are a combination of the bank, branch, and account numbers which together makes up the Basic Bank Account Number (BBAN). This BBAN serves the purpose of locating a specific financial institution within the system. 

To find your IBAN number, you can either log into your online banking site or app, check your bank statement, or contact your bank directly. 

Sometimes you may need to provide both an IBAN and a SWIFT code to ensure the money goes to the right place. Not all countries use IBAN, so if you're sending money to a country without IBAN, the SWIFT code will be enough for the transfer. 

Your bank or financial institution can tell you which one you need. If a company is sending you money, they will ask you for your IBAN code, SWIFT code, or both. 

IBAN codes are not used by banks in the United States, Canada, Australia, New Zealand, and China. Instead, these countries utilise SWIFT codes and routing numbers. IBANs are primarily used in European countries, along with certain regions in the Middle East, North Africa, and the Caribbean. 

IBAN numbers were initially created for Eurozone bank payments, but they are now used in over 70 countries worldwide. However, in countries like Canada and the US, IBAN numbers are not utilized or necessary for transferring funds domestically. Nonetheless, when making international transactions to countries that have adopted the IBAN system, having the IBAN number is essential. 

When you make a cross-border transaction, your bank's payment system checks the characters in your IBAN number. It compares them with its database to validate both the sender's and recipient's accounts. Special algorithms are used to process and verify the account information. If the information is valid, the payment will be processed. 

While a SWIFT code is used to identify a specific bank, an IBAN is used to identify your individual bank account for international transfers. IBAN is an international numeric system designed to identify overseas bank accounts. 

The key importance of an IBAN lies in its ability to provide extra information for identifying overseas payments, especially wire transfers to European countries.

IBANs are considered secure by financial regulators in the Eurozone. They are widely used for international payments in the region, providing a crucial security benefit. An IBAN code ensures the safety of your money by making it is impossible to withdraw or transfer funds without proper authorisation. 

In case you provide an incorrect IBAN number, your transfer might be delayed or rejected. Hence, it is important to double-check your IBAN code before initiating an international transaction. 

While the terms BIC code and SWIFT code are often used interchangeably, they refer to the same thing and serve the identical purpose of identifying banks in international transactions. 

Using an IBAN number generator is simple. You can easily find one online. These generators follow the internationally accepted coding system and use the preset configuration based on your country. All you need to do is enter your country code, sort code (if you’re in the UK), and account number. This tool will generate your IBAN for you. Additionally, you can also check an IBAN number on IBAN checker to verify if the number provided by your recipient is active and valid.