What is the Difference Between Swift Code and IBAN Code?

The main difference between a Swift code and an IBAN code lies in what they are used to identify in an international transaction. Here are the key differences between the two:

• Swift Code: A Swift code, or SWIFT BIC (Business Identifier Code), is used to identify a specific financial institution in an international transaction. It is a messaging system that banks use to communicate with each other. A Swift code consists of 8-11 characters, including a bank code, country code, location code, and branch code.
• IBAN Code: An IBAN (International Bank Account Number) code is used to identify an individual bank account involved in an international transaction. It is a standard international numeric system created to identify overseas bank accounts. An IBAN code can be up to 34 characters in length and consists of a two-letter country code, two numbers, and a basic bank account number.

In summary:

• A Swift code identifies a specific bank.
• An IBAN code identifies an individual bank account.

Both Swift codes and IBAN codes facilitate international money transfers, and they are often used in conjunction with each other. For example, when sending money overseas with an IBAN number, the recipient has to be in a country that supports the IBAN system, and they may also need to provide their Swift code.

Comparative Table: Swift Code vs IBAN Code

Here is a table comparing the differences between SWIFT codes and IBAN codes:

SWIFT codes are used to identify a specific bank during an international transaction, while IBAN codes are used to identify an individual bank account involved in the transaction. Both codes are essential for facilitating international banking transactions, but they serve different purposes and are not interchangeable.