What’s an IBAN Number & How it works?
An IBAN, or international bank account number, is a standard international numbering system that emerges to identify an overseas bank account. The number starts with a two-digit country code, then two numbers, followed by several more alphanumeric characters. please be noted that an IBAN does not replace a bank’s own account number system, as it’s only meant to provide additional information that helps in identifying overseas payments. The IBAN has all the information that a bank or financial institution has, It contains both a bank account number and an identification code for the bank itself.
Example of IBAN Account
- The Country code is the two-character ISO code for the country in which the bank account is located.
- The Check digits are calculated from the information contained within the rest of the IBAN number and validate the account and routing numbers.
- The Bank code identifies the institution holding the bank account.
- The Branch code identifies the specific bank branch holding the account.
- The Account number itself is contained at the end of the IBAN.
Banks in some countries do not use IBANs. The United States and Canada use a combination of transit/routing numbers and account numbers. Australia uses Bank State Branch (BSB) codes for local payments and SWIFT codes for international transfers; New Zealand employs a similar process. Indian Bank Uses a swift network for overseas payments and there are so many other countries that are using the SWIFT network.
How is IBAN different from SWIFT/BIC?
Both SWIFT and IBAN are globally saluted standards for cross-border payments. However, below are a few differences between them.
1. SWIFT was the first one in the race before IBAN was created for international bank transfer and still remains the largest international payment system worldwide.
2. SWIFT and IBAN same as each other in cross-border payment. SWIFT identifies a bank in an international transaction and IBAN pinpoints an individual account in a given bank in a given country.
3. IBAN codes are directly issued by the banks as per the format described in the IBAN Register whereas SWIFT codes are assigned by a central organization like a central bank or federal bank authority.
4. SWIFT contains a combination of numbers and letters, and is between 8 to 11 characters.
What is the benefit of IBAN number? for business
1. The entire payment cycle is streamlined with no disconnect
2. All banks provide fast on-boarding and quick payment processing.
3. It is 100% digital. No waiting in the queue, filling out application forms.
4. Send and receive cross-border bank transfers on your IBAN with low transaction fees.
5. Instant withdrawals between your business and personal IBAN accounts.
6. Same-day payments throughout Europe at a minimal cost.
We at offshore Gateways can help you to secure an IBAN account for your B2B, C2B transactions. We can help you to secure an IBAN account in nearly 30 countries. We can help you to open an IBAN account for person or businesses.
Do get in touch with us to know more about the same or visit www.offshoregateways.com