The SWIFT code, also known as SWIFT/BIC (Bank Identifier Code), plays a key role in international money transfers. In this article, you will learn everything to know about SWIFT codes.
International money transfers are really important, discover the Guide to international business payments to understand perfectly!
What is a SWIFT code?
The SWIFT code is a unique identifier used to identify a financial institution during international financial transactions. It ensures a secure and precise routing of funds between banks worldwide.
What is the format of a SWIFT code?
A SWIFT code typically consists of 8 to 11 characters. It may contain a combination of letters and numbers, with each character holding a specific meaning to identify the receiving financial institution.
Discover the meaning of each character: BIC / SWIFT code for any bank.
What is the purpose of a SWIFT code?
The SWIFT code directs funds to the correct financial institution during cross-border transfers. It guarantees the speed and security of international transactions by ensuring accurate identification of the banks.
How can obtain a SWIFT code?
Financial institutions, such as banks, are assigned a SWIFT code by the SWIFT network. Customers can usually find their bank’s SWIFT code on their bank statement or by directly requesting it from their bank.
Are SWIFT codes the same worldwide?
No, each financial institution has its own SWIFT code. There are thousands of SWIFT codes worldwide, each identifying a specific bank in a particular country.
Does a SWIFT code change?
In some cases, financial institutions may change their SWIFT code, typically due to mergers or acquisitions. It’s important to regularly check the SWIFT code when making money transfers to avoid any routing issues.
What is the difference between a SWIFT code and an IBAN?
The SWIFT code identifies the financial institution, whereas the IBAN (for International Bank Account Number) identifies a specific bank account. Together, these two identifiers ensure funds are directed to the correct account in the right bank during international transactions.
The SWIFT code is a vital element of the financial system, facilitating international money transfers by ensuring precise routing of funds between financial institutions.
Love the article? Check out more blog posts about payment here.
Sources:
