What is a SWIFT IBAN?
Updated: Oct 9, 2020
Since you're reading this blog post, I bet you are wondering... what is a SWIFT IBAN? Well, this article will get your question answered!
What is a SWIFT IBAN?
It is generally accepted that international transactions are widely used nowadays. During the height of the Covid-19 pandemic, remote transactions were even more popular, since the lockdown kept many people at home. Having a SWIFT IBAN account allows you to make international online transactions, without even leaving your desk. SWIFT bank transfers basically allow you to send money abroad to an account holder, anywhere in the world. How helpful and convenient was that during isolation?
What does SWIFT mean?
SWIFT stands for “Society for Worldwide Interbank Financial Telecommunication” and it is used in the financial sector to conduct business operations. A SWIFT code (or SWIFT number) is an international bank code used to recognize banks worldwide.
When do I need a SWIFT code?
The SWIFT code is required when sending funds to somebody’s Bank from overseas. If you are about to send money to someone from abroad, you will be asked for the recipient’s SWIFT code. Both the sender and the recipient need to be members of the SWIFT network, in order to conduct the transfer.
What is the SWIFT code format?
SWIFT codes follow a specific format. Particularly, they consist of a combination of numbers and letters, and they are either 8 or 11 characters long, depending on which bank office they refer to.
SWIFT codes contain information that helps identify who we are, as well as where in the world we are – in which country, city and what bank and branch we use. Therefore, the financial institution will know which account the money need to be sent to.
Here is an example to better understand a SWIFT code:
Bank Code: The first 4 letters (A-Z) represent the bank.
Country Code: These 2 characters (A-Z) identify the country where the Bank is located.
Location Code: Includes numbers (0-9) or letters (A-Z). It specifies the location of the Bank’s office.
Branch Code: The last 3 digits are made up of numbers (0-9) or letters (A-Z). They represent a specific Bank branch. “XXX” is used to recognize the Head Office. If it is absent, then it also refers to the Bank’s Head Office. An 8-character SWIFT code does not include the branch code.
How can I find the SWIFT code?
If you already have a SWIFT IBAN, you can usually find it on your bank account statements, on your online banking system, or you can ask for it at the Bank.
What are the disadvantages of SWIFT?
International payments via SWIFT have a negative side… Even though SWIFT IBANS are very efficient, they are not that cost-effective. Particularly, when sending or receiving funds via SWIFT, your bank charges you a high exchange rate, and you end up paying high fees you haven’t thought about paying.
Another thing that you should keep in mind, is that SWIFT payments take around 5-7 business days to be completed. So... if you need to make a transaction ASAP, then this method of payment is probably not the right for you.
If you would like to send funds to a friend/relative within the European Union, or pay your bills, then the banking services of WireWallet are ideal for you! From low fees to fast transactions!
Open an IBAN account with WireWallet and enjoy a wealth of benefits during your online banking activity! If you would like to know more details regarding the banking services, sent an email to firstname.lastname@example.org.