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Guilherme Mazui

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What is the Difference Between MICR and Swift Code?

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MICR and SWIFT codes are both used in the banking system, but they have different purposes and applications.

MICR (Magnetic Ink Character Recognition) Code:

  • MICR codes are unique 9-digit numeric codes used to identify the location of a bank branch.
  • They are printed on the MICR band of checks issued by banks.
  • MICR technology helps in the efficient and automated routing of checks between banks.
  • MICR codes are mainly used for processing checks and clearing a large number of them daily.

SWIFT (Society for Worldwide Interbank Financial Telecommunication) Code:

  • SWIFT codes are globally unique identification codes for banks and financial institutions.
  • They are used to move money between banks worldwide.
  • SWIFT codes are assigned to both financial and non-financial institutions.
  • They are not written with magnetic ink, unlike MICR codes.
  • SWIFT codes are related to international transfers, while MICR codes are mainly for usage within a country.

In summary, MICR codes are used for the efficient processing of checks and clearing them at the bank, while SWIFT codes are used for international money transfers between banks and financial institutions.

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  • What is the Difference Between MICR and Swift Code?
  • Comparative Table: MICR vs Swift Code

    • Comparative Table: MICR vs Swift Code

    MICR (Magnetic Ink Character Recognition) and SWIFT (Society for Worldwide Interbank Financial Telecommunications) are two different concepts used in the banking industry. Here is a table highlighting the differences between them:

    Feature MICR SWIFT
    Purpose MICR is a technology used to read characters printed in a special magnetic ink. SWIFT is a messaging system for international financial transactions, providing secure and standardized communication between banks.
    Usage MICR is used by banks and financial institutions to process checks and other paper-based transactions. SWIFT is used for international money transfers, exchange of structured (e.g., payment orders) and unstructured (e.g., free-format text messages) messages between banks.
    Structure MICR characters are printed on the bottom of checks and other documents, and they can be read by MICR readers. SWIFT transactions involve an 8-11 character identifier known as a Business Identifier Code (BIC), which represents the bank's location, bank, and branch.
    Security MICR is considered secure as it uses special magnetic ink and requires a MICR reader to read the characters. SWIFT has its own security measures and encryption to protect the communication between banks.

    Please note that the search results provided did not directly address MICR and SWIFT codes.

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    Guilherme Mazui

    Guilherme Mazui is graduated in journalism from the Federal University of Minas Gerais (UFMG) and a master's degree in Communication from the University of São Paulo (USP). In addition, he has experience in advertising writing and has worked as a content editor in several companies.