What Are BIC And SWIFT Codes?
To send or receive money internationally, a bank or other financial institution needs a reliable system to execute transactions. That is how the BIC/ SWIFT code system emerged. For individuals and businesses seeking to send money overseas, it is good to become acquainted with the codes. This article will discuss everything you need to know.
So, What Are BIC and SWIFT codes?
BIC is short for Business Identifier Code, and SWIFT stands for the Society for Worldwide Interbank Financial Telecommunications. Business Identifier Codes are primarily used for the identification of financial and non-financial institutions involved in day-to-day business transactions.
Is BIC the Same as SWIFT?
BIC and SWIFT are essentially the same because they both adhere to ISO 9362, which is the international standard for Business Identifier Codes.
What Are SWIFT/BIC Codes Used For?
Individuals and businesses seeking to send money around the world will need to use the BIC/SWIFT because they are the international standard. That means it is the system used by global banks and financial institutions to communicate with each other in a timely fashion.
The BIC/SWIFT coding provides the information to know where the money should come from, and which account it should be credited to. Banks in your own country will be familiar with the process for sending money amongst domestic banks and will do this regularly. However, when moving overseas and including an ever-growing list of banks, they need a reliable system to avoid confusion.
What Do BIC/SWIFT Codes Look Like?
SWIFT/BIC codes are made up of 8–11 characters that identify your city, country, bank, and particular branch. The code will look like this:
AAAABBCCXXX
What Do the Numbers in a BIC/SWIFT Code Stand For?
— AAAA: A 4-letter bank code that is usually a shortened version of a bank’s name.
— BB: A 2-letter country code for the bank.
— CC: A 2-character location code for the bank’s head office in that country.
— XXX: A 3-digit branch code designating a particular branch. These last 3 digits are optional.
Here are three examples of well-known banks:
— Scotiabank: NOSCCATTXXX
— Charles Schwab Bank: CSCHUS6SXXX
— Bank of England: BKENGB2LXXX
How Do BIC/SWIFT Codes Work?
BIC/SWIFT codes are an identifier system that is an international standard for routing transactions across borders. They provide the foundation for transfers to overseas accounts, but also provide a tracing mechanism should there be a problem with the transaction.
How Do I Identify My BIC/SWIFT Code?
There are three common ways to use for finding your BIC/SWIFT code:
- Look at your account numbers on a bank statement.
— You can also find them in your online banking portal, again by looking at a statement.
- Alternatively, you can go to your local branch or communicate with them to ask for the numbers.
Larger financial institutions will have an international payments department that can walk you through a payment if required.
Are There Fees Associated With Using a BIC/SWIFT Code?
There is not a fee involved in order to use a BIC/SWIFT code, but your bank will charge you fees for making international transfers. These fees are also usually charged by both the sending and the receiving bank and can range from anywhere between $10 — $50 and upwards. When making an international transfer you will be asked which fees you will be paying and whether the recipient is accepting fees on their end.
How Payset Can Help
Another code that originated from the international standards was the International Business Account Number (IBAN). This was originally adopted by the European Committee for Banking Standards (ECBS) but is now adopted in 79 countries. The IBAN consists of up to 34 alphanumeric characters and includes additional routing information that was not standard in BIC/SWIFT and sometimes led to errors or confusion. The IBAN system is mandatory for Skandinavian countries and also in the likes of Saudi Arabia and the United Arab Emirates. It is also mandatory for some African, Caribbean and South American nations.
Payset is an online payments provider and one of the foundations of their service is a Virtual IBAN Account. Payset provides a range of payment systems, such as SWIFT, ACH, and CHAPS, but the IBAN can open the door to simple transactions with a long list of countries. Alongside being a more reliable format for international transactions, here are a list of benefits associated with a Payset Virtual IBAN Account:
Multi-Currency Support
With the Payset IBAN account, you can take advantage of a multi-currency platform. You can convert between 38 different foreign currencies and also hold up to 34 currencies at one time. Being an online-focused payments providers, you can send funds around the world rapidly at a fraction of the cost of high-street banks. Setting up an account at one of those banks for a foreign currency is also laborious and will still come with high fees.
IBAN Alternatives
Although IBAN is the preferred transfer network for your account, Payset also supports transfers through other payment networks including SWIFT, SEPA, and CHAPS. Depending on the nature of your business and your trading partners, it is likely that you will do the majority of your transfers through IBAN with the occasional need for one of the alternatives.
Free Payset Transfers
Transferring money from one Payset account to another is free and is another way to remove the high costs of legacy international transfer providers.
Bank Identification Code (BIC) Explained
Bank identification code, or BIC, refers to a unique code that is used to identify banks when sending international transfers.
In this article, we’re going to share everything you need to know about the Bank Identification Code, including how it compares to other international bank identifiers.
We will also be answering common questions we receive from our members on the topic below.
This article is part of our series on banking basics, ranging from opening different types of bank accounts around the world to understanding how various aspects of the banking system operate.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
Bank Identification Code (BIC)
Bank identification code or BIC code refers to a unique identifier that is used when sending international transfers between financial institutions. More commonly referred to as a SWIFT code, it is an international bank code that facilitates transfers over the SWIFT payment network.
When sending an international transfer, the sending party will need to provide the BIC/SWIFT number of the receiving bank. The standard BIC format is 8 to 11 characters, which vary by bank and bank location.
Because this international bank code is so integral to sending transfers to the correct financial institution, you do need to ensure that you have the correct bank identification code before sending.
To find the correct bank identification code, you can either ask the receiving party or use an online BIC directory or BIC validation tool. There are also a number of BIC search and BIC lookup tools available. However, it’s important that you validate the code with a trusted source prior to sending the transfer.
What Is the Difference Between BIC and IBAN?
The main difference between BIC and IBAN is that the BIC code is used to send and receive transfers to different financial institutions while the IBAN is used to send and receive transfers to a specific bank account. In other words, a BIC code represents the bank while an IBAN represents the customer.
What Is an IBAN Code Used For?
An IBAN code is used for identifying a specific bank account. It includes information that indicates in which country and bank an account is held, and also includes the specific account number. In other words, an IBAN code is a unique number to each bank account.
Is a Bank Identification Code the Same as a Bank Routing Number?
No, a bank identification code is not the same as a bank routing number. That said, both the bank identification code and the bank routing number are used to identify financial institutions. However, they are used in very different situations. While a bank identification code (or SWIFT code) is used to facilitate cross-border transfers internationally, a bank routing number is only used to send transfers domestically between financial institutions in the United States.
Do You Want Our Free Non-Resident Banking Guide?
Sign up here to receive our Free Non-Resident Banking Starter Guide and weekly updates on the best account opening options available:
Frequently Asked Questions
Below are a few of the most common questions we receive from people looking into what a bank identification code is. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
Where Do I Get a SWIFT/BIC Code?
You get a SWIFT/BIC code directly from your bank. Importantly, the SWIFT/BIC code is unique to the financial institution. In other words, all clients at the same bank (and bank location) will have the same SWIFT/BIC code. This is because the number is unique to the bank but it is not unique to each customer.
Are SWIFT Code and BIC the Same?
Yes, SWIFT code and BIC are the same. That said, while these two terms are used interchangeably to refer to the unique identifier of a financial institution, BIC is the technically correct term to use. This is because SWIFT refers to the name of the network that the transactions are sent over while BIC refers to the unique code assigned to each financial institution.
Where Do I Find My Bank Identification Code?
You can find your bank identification code in the international wire transfers instructions provided to you by your bank. If you do not have your transfer instructions easily accessible, you can either contact your bank directly, or review one of the many online tools to try and confirm the BIC for your bank location.
Is a BIC the Same as a Routing Number?
No, a BIC is not the same as a routing number. However, both BIC codes and routing numbers do serve a similar purpose. This is because both are unique identifiers that represent a specific financial institution. However, while BIC codes are used to send transfers internationally, routing numbers are used to send transfers between banks in a specific country.
Do You Want Help Opening Bank Accounts?
If so, you can get access to GlobalBanks IQ in just a few clicks.
GlobalBanks IQ is our flagship international account opening solution. It gives you instant access to the…
+ Expert insights on which banks to choose & why
+ Step-by-step reports to open accounts in the best banking hubs
+ GlobalBanks international bank database & detailed bank profiles
+ Tried & tested banks for high-risk, offshore, & non-resident clients
+ Plus, get YOUR most pressing bank account opening questions answered by our team!
And “yes!” GlobalBanks IQ helps foreigners and non-resident individuals open bank accounts.
In fact, GlobalBanks IQ even helps non-resident, foreign & offshore entities open bank accounts.
Use the link in our menu above to learn more about GlobalBanks IQ. Or, contact us directly with any questions!
What are BIC/ SWIFT codes, how do you find them, and how do they work?
Not sure where to find this key ingredient to an international money transfer? Our guide will let you know about SWIFT and BIC codes inside and out.
November 16, 2020 — 7 min read
To send or receive money internationally, your bank or any other financial institution must know where to send the money — but how do they know? Make way, for this is where a BIC/ SWIFT code comes into the scene!
If you’ve ever initiated a money transfer with Xe or read our guide to sending money, you might’ve seen that you’ll need a BIC or SWIFT code. But what is that, and where would you find it?
Starting from what a SWIFT/ BIC code is and why you need it to how you can find it easily and use it for transferring money globally, our guide will let you know everything about this code inside out. Ready, get set, go!
What is a BIC or SWIFT Code?
BIC stands for Bank Identifier Code, and SWIFT stands for the Society for Worldwide Interbank Financial Telecommunications. Sometimes, people use the terms “BIC” and “SWIFT” interchangeably.
A SWIFT code or SWIFT ID typically identifies banks and other financial institutions worldwide, for international transactions.
More specifically, it says who and where these institutions are, so that your money goes to the correct place — you might even think of it as a global identity card for banks.
The International Organization for Standardization (ISO) recognizes and approves SWIFT codes for financial and non-financial institutions. Right now, there are over 40,000 live SWIFT codes in the world.
What does a BIC/ SWIFT code look like?
SWIFT/ BIC codes contain 8-11 characters that identify your city, country, bank, and the branch of your bank. The code may look something like this:
AAAABBCCXXX
All muddled up? Let’s get this BIC format straight:
AAAA: 4-letter bank code that’s usually a shortened version of your bank’s name.
BB: 2-letter country code that represents the country in which the bank’s located.
CC: 2-character location code, pointing to the place where the bank’s head office is situated. It’s made up of letters and numbers.
XXX: 3-digit branch code that specifies a particular branch of the bank, usually the bank’s headquarters. These last 3 digits are optional, though.
To help you understand better, we’ve listed out the BIC/ SWIFT codes for a few large banks from around the world:
Scotiabank (Canada): NOSCCATTXXX
Charles Schwab Bank (US): CSCHUS6SXXX
Bank of England: BKENGB2LXXX
State Bank of India: SBININBBXXX
Why do I need a BIC/ SWIFT code?
If you want to send money around the world, you’ll almost always need to use a SWIFT/ BIC code. That’s because money transfers technically don’t actually transfer money around the world. Banks securely transmit information to one another through the SWIFT system or their other channels, which lets them know where the money should come from (which account should be debited), and which account should be credited with the money. In short, without this code, your bank won’t know where exactly they should send your money to.
So, it’s important for a bank on one side of the world to find the right bank on the other side, when it comes to international wire transfers,
Even when you use an international money transfer app like Xe, you’ll have to enter the BIC/ SWIFT code of the recipient’s bank for wiring money to the recipient, because the money will travel from your bank account to your recipient’s bank account.
How do I find my SWIFT/ BIC code?
Don't worry, you have a few options.
Check the bank statements
You can usually find your bank’s BIC/ SWIFT code in your bank account statements. If you’re using an online bank, log into your digital bank account to easily view your bank statement.
Check the bank’s official website
Visit the bank’s website and check their Frequently Asked Questions (FAQs) section, international wire transfers, and other related links for their BIC/ SWIFT code. If there’s a search feature on the website, enter “SWIFT code” in the search box.
Contact your bank
In case you still can’t find the BIC/ SWIFT code, reach out to your bank via live chat, phone, social media, or email.
How do I verify a SWIFT code?
When sending or receiving money, always cross-check the BIC/ SWIFT code and other details with the recipient or your bank before you or the sender sends the money.
But why should you cross-check it?
As a matter of fact, if you enter a SWIFT code that doesn’t exist, the bank should reverse the payment you’ve made, and return your money. They’ll be charging a specific fee for that, though, and it might take some time before you get your money back.
As soon as it hits you that you’ve entered the wrong code to send money internationally (uh-oh), get in touch with your bank right away. They may be able to cancel the transaction, so keep your fingers crossed.
You can avoid such a scenario if you make sure that the BIC/ SWIFT code has:
No typing mistakes
You might think entering a SWIFT code is the work of a moment. But when you finally type it, character by character, it might seem as long as a marathon.
Since it’s easy to make a mistake while typing in the code, try to copy and paste the code whenever possible.
The correct format
Always stick to the format of the BIC/ SWIFT code that the recipient has given you. For example, don’t type the country code before entering the bank code.
And remember, there shouldn’t be any spaces between the characters in the code.
How do I transfer money using a SWIFT code via money transfer apps (like Xe)?
Once you sign up on online money transfer apps like Xe, you need to link your bank account directly to the app.
After that, you can send money straight to the recipient’s bank account through a wire transfer, no matter where in the world he or she may be.
You’ll usually have to follow these steps for wiring money between banks via Xe:
Confirm which currencies you’d want to exchange. You can use Xe’s free Currency Converter tool for a quick check on the mid-market rate.
Enter the amount you wish to send.
Enter the recipient’s name and address.
Enter the recipient’s bank details, including the BIC/ SWIFT code and the International Bank Account Number (IBAN) of his or her bank.
Choose your payment method and confirm the money transfer.
Is IBAN the same as SWIFT?
No, IBAN and SWIFT are 2 different codes, but both of these do the same job — sending or receiving money.
Banks use SWIFT codes to identify bank branches for making international payments. On the other hand, IBAN codes specify individual bank accounts for both domestic and international payments.
Do I need an IBAN number or a SWIFT code?
It depends on the country to which you’re sending money. For example, banks in the US, Australia, and New Zealand don’t use IBAN numbers, but they use SWIFT codes for different banking services.
But if you’re wiring money to a country within the Eurozone, you’ll surely need a SWIFT/ BIC code along with an IBAN number.
Is a SWIFT/ BIC code the same as a sort code?
Nope, sort codes aren’t the same as SWIFT codes. Sort codes are 6-digit codes that help British and Irish banks to identify bank branches for domestic payments (payments within a country).
Do all banks use BIC/ SWIFT codes?
No, all financial institutions, especially some small banks and credit unions, don’t have SWIFT codes.
Instead, these institutions contact banks that do have BIC/ SWIFT codes, and ask them to serve as intermediaries for wiring money.
You might also come across some financial institutions that use SWIFT for only a certain number of their branches, and not all of them.
Is a SWIFT code the same for all branches?
It depends on the recipient’s bank. Some banks may have one BIC/ SWIFT code for all their branches, while others have unique SWIFT codes for each of their branches.
Plus, since all the branches of a bank may or may not use the SWIFT network, the code usually specifies the bank’s head office or primary office.
So, are you ready to make an international money transfer using a BIC/ SWIFT code? Download the Xe app or sign up today!
What are BIC and SWIFT bank codes?
BIC and SWIFT codes are used to accurately identify bank branches when completing international transactions. SWIFT stands for 'Society for Worldwide Interbank Financial Telecommunication' and is the overall messaging system. BIC stands for 'Business Identifier Code' and is the code used in the system. The terms SWIFT and BIC are used interchangeably and represent information required for making international transactions.
Although BIC and SWIFT codes may seem confusing, they’re essential for anyone who needs to send international payments . So, for businesses with a global presence, they’re something you may need to know about. We’ll explain everything you need to know about BIC and SWIFT codes, including:
what they look like,
how to find them
how to use them
What is a BIC code?
BIC means Bank Identification Code, or Bank Identifier Code. It is an 8 to 11-character number that is used to identify a specific bank when you make an international transaction . It’s almost like a postcode for your bank, ensuring that your money goes to the right place.
So, what is a SWIFT code? SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication, which is a global network that processes payments between different countries.
Is BIC the same as a SWIFT code?
Short answer: yes. The terms are used interchangeably and mean exactly the same thing – they’re simply given different names by different banks and financial organisations. It’s also worth noting that these codes may be referred to as SWIFT/BIC codes, BIC/SWIFT codes, SWIFT ID or SWIFT identifiers, but again, in practice, there is no difference between any of the terms.
What do BIC/SWIFT codes look like?
All BIC and SWIFT codes follow the same format. They are between 8 and 11 characters long and they are arranged as follows:
AAAA – 4-character bank code that looks like a shortened version of the bank’s name
BB – 2-character country code telling you which country the bank is in
CC – 2-character location code telling you where the bank’s head office is located
DDD – 3-character branch code (optional) telling you where the specific branch is located
Because some banks don’t use the 3-character branch code, they’ll have a shorter (8-character) BIC code. For these banks, the branch code may be replaced by a triple X (i.e. MIDLGB22XXX) or left off entirely.
How do I find my BIC code?
If you’re receiving an international payment, you’ll need to know your BIC number. You can usually find it on your bank statements, but if you don’t have any to hand, you could also log into your online banking account or just call your local branch on the phone.
If you’re making an international payment and need to find the BIC number of the recipient, you can simply use a BIC/SWIFT finder – such as this online tool from Bank.Codes – that allows you to search for the codes of particular branches or validate SWIFT numbers for extra security.
Finally, it’s important to double-check with your intended recipient that the BIC code you’ve been given is correct before you authorize a payment. An incorrect code could mean that your payment is sent back, delayed, or even goes into the wrong account.
Is there a fee for using BIC/SWIFT numbers?
Yes, most banks will require a fee to process international payments , so you may need to pay up to £40 — £50 when you use a BIC number for your payment. It’s also possible that when your money transfer is in transit, you’ll incur a handling fee from the corresponding banks.
Bank transfers using SWIFT numbers often go through 1 — 3 corresponding banks and so these fees can add up. In addition, information on handling fees is often hidden in the small print, so it may be difficult to know how much you’ll be charged when you make the transfer.
International transaction fees are expensive and not always transparent; that’s why GoCardless offers a seamless cross-border bank payment service covering over 30 territories with pricing that is both affordable and transparent.
How do BIC/SWIFT codes actually work?
When banks send international payments, they rely on a network of correspondent banks. These correspondent banks work together to move your money from one territory to another before it finally reaches the intended recipient. BIC codes are used to ensure that your payment goes to the right bank.
On the customer side, it’s a simple process. Once you’ve got your recipient’s SWIFT number and confirmed that it’s correct, you simply head into your local branch and ask to make an international payment . Alternatively, you can use your online banking account to make the payment.
Making international payments easy
GoCardless provides a merchant dashboard from where you can set up international payments in just a few clicks.
Merchants do not need to go to the trouble of setting up foreign bank accounts, instead GoCardless offers automatic conversion and deposit in your UK bank account. However, if you already have a foreign currency account funds can be deposited there. Local currency collection is available in the UK, US, EU, Australia, New Zealand and the Nordics.
Case Study — simple and affordable international payment collection
Hub Du, a marketing agency with customers in the UK, Australia, the US and Europe, used to accept overseas payments via cards. However, they found the fees for international card transactions prohibitively expensive, and when combined with the high payment failure rate and the high level of manual admin created, the system was unsustainable.
Switching to GoCardless enabled Hub Do to save significantly on transaction fees, increase the payment success rate and enabled automation that eliminated late payments and manual admin almost entirely.
Pete Nicholls from Hub Do discusses how international payment collection with GoCardless has saved him time, money and stress:
Collecting international payments with GoCardless is affordable, reliable & easy to set up with no contracts or upfront commitment.
We can help
Expanding internationally? GoCardless has created the first global network for one-off and recurring payments. Collect payments in your customers’ currency, and settle in your own currency at the real exchange rate. All with just your existing bank account. Plus, you can automate the whole process. Learn more about international payments .
International Payments FAQs
What is the difference between IBAN and BIC/SWIFT?
While BIC/SWIFT codes help to identify a specific bank when you're making an international payment, an IBAN number enables you to identify the individual bank account.
IBAN is a unique identifier for a bank account that is used by banks around Europe to ensure payments reach their destination safely.
Do I need a foreign currency bank account to collect international payments?
No. If you are a GoCardless merchant and do not have international bank accounts, GoCardless will automatically collect in foreign currencies on your behalf, convert to GBP and deposit in your UK bank account.