Return to site

What Do You Mean By The Term IBAN Code?

Know Your Bank Account

Are you confused of the term IBAN code? Wish to know what is it? Here is a post to help you know better about the term IBAN code.

broken image

IBAN stands for International Bank Account Number. It is an internationally recognized bank account number as the name implies, which will clearly depict the user’s bank account information like, their account number, bank name, the country where the bank is located in, and also the processing and the communication between the bank and the customer.

IBAN Vs Swift Code

There are two methods of identifying bank accounts when a transfer happens from one country to another:Society for Worldwide Interbank Financial Telecommunication (SWIFT) code and International Bank Account Number (IBAN). But there is a difference in the terms.

SWIFT code will identify the specific bank during international transaction and IBAN is used to identify individual account involved in the international transaction. Both plays a vital role in the international financial market. If you want to get the swift codes for Indian banks, you can get it from indian bank details.

Benefits Of IBAN

broken image

1.The international bank codes IBAN always provide superior security

2.The international bank codes accelerates the transfer of funds.

3. They have been standardised globally and payment orders can be verified to see if the bank account informations are accurate before they are transferred. This indicates there will be lesser errors, lesser complaints not to mention lesser inquiry charges for complaints and reversed entries!

4.It prevents transcription errors which in turn will be rendered as a human or OCR error. It varies from institutions and it is open to choose the IBAN number using their account numbers. It is a alphanumeric character of at most 34 characters, and it can contain only the upper case letters and numbers.

The letters in this IBAN account number consists of the following:

1.Two letters which represents the name of the country where the bank resides according to ISO 3166 standards. Among these 2 letters, the first one will points to an alpha code and the second one to a country code.

2.Two check digits to ensure the integrity of the IBAN account number. This check number is unique and vary from one number to another.

3.BBAN (Basic Bank Account Number) of the user. The length of this number may vary depending on the country code that you have chosen in the first point.

For example, GB15MIDL40051512345678

These are the things that you need to know about the international bank Account Number (IBAN)