IBAN, BIC, SWIFT code, sort code or routing number: which one do you need?

An IBAN identifies a bank account, a BIC identifies a bank or other institution, and "SWIFT code" is the everyday name for a BIC. A US ABA routing number and a UK sort code are domestic bank identifiers: they do the BIC's job inside one country and are paired with a domestic account number. For an international payment you usually need the payee's account in the format its country uses (an IBAN in Germany, the UK, the UAE or Saudi Arabia; an account number and routing details in the US) plus the BIC of the payee's bank.

What is the difference between an IBAN and a BIC?

They answer different questions. The BIC answers "which institution?" and the IBAN answers "which account at that institution?".

• BIC is defined by ISO 9362. The current edition, ISO 9362:2022, specifies the structure of the business identifier code for financial and non-financial institutions; it identifies organizations, not individual persons. ISO 9362:2022 Swift is the registration authority. Swift: Business Identifier Code
• IBAN is defined by ISO 13616. ISO 13616-1:2020 sets out the structure of the IBAN and replaced the withdrawn 2007 edition. ISO 13616-1:2020 Swift has been the registration authority since 2006 and publishes the national formats in the IBAN Registry; only a national standards body or national central bank can register a country's format. Swift: IBAN

Is a SWIFT code the same as a BIC?

In practice, yes. People say "SWIFT code" because Swift registers BICs and its network uses them to address messages, but the formal name is BIC. Two details matter:

• Not every BIC is connected to Swift. Since the 2014 revision of ISO 9362, Swift says users can no longer rely on position 8 of the BIC to tell whether it is connected. Swift: ISO 9362:2014 white paper
• "Bank" became "Business". The B in BIC now stands for business, and ISO 9362:2022 covers both financial and non-financial institutions, which is why some corporates hold BICs. ISO 9362:2022

How is a BIC structured?

Swift's BIC policy defines an 8-character code made of three parts, with an optional fourth. Swift BIC policy

An 8-character BIC and the same code with "XXX" appended identify the same head office. If a payee gives you an 11-character BIC with a branch code, use it as given rather than shortening it.

How is an IBAN structured, and how long is it in each country?

Every IBAN starts with a two-letter country code and two check digits, followed by a country-specific Basic Bank Account Number (BBAN) of up to 30 characters, for a maximum of 34. The check digits use the ISO/IEC 7064 MOD 97-10 scheme. Swift: IBAN Registry

A valid check digit proves only that the IBAN is well formed. It does not prove that the account exists or belongs to the person you intend to pay. The Central Bank of the UAE also notes that an IBAN does not replace the existing account number; it is a standard representation of the same account, and only banks may generate it.

What are US routing numbers and UK sort codes?

ABA routing number (US). The American Bankers Association devised the routing number in 1910, and the industry adopted it in 1911. It has nine digits in three parts: a Federal Reserve routing symbol, an ABA institution identifier and a check digit. "Regular" routing numbers are used for checks, wires and ACH, and the official registrar is LexisNexis Risk Solutions. ABA: routing number policy and procedures A US bank's wire instructions may list a routing number, a BIC or both, depending on whether the payment is domestic or international, so ask the payee's bank for its instructions.

Sort code (UK). A sort code is a six-digit number that identifies a UK institution and branch. It must be registered with at least one UK payment system to be used there, and Pay.UK's Extended Industry Sort Code Directory is the central reference that payment systems use. Pay.UK: sort code information The UK IBAN embeds the sort code, so the same account can be quoted either way.

Which identifier do you need for each market?

Inside an ISO 20022 payment, these identifiers sit in different places. The BIC identifies the agents (the banks), the IBAN or local account number identifies the debtor and creditor accounts, and an LEI can identify a legal entity. The CPMI's harmonised requirements state that a globally standardised, publicly available identifier such as the BIC or the LEI is required to identify a financial institution. CPMI: harmonised ISO 20022 data requirements pacs.008 explained shows the elements, and LEI in payments covers the LEI.

What goes wrong, and how should you check details before paying?

Use this checklist before releasing an international payment:

• Right code in the right field. A routing number in a BIC field, or a sort code without the account number, will fail validation or be repaired by hand.
• Format check. Validate IBAN length and check digits for the destination country before submission.
• Bank and account agree. The BIC should belong to the bank that holds the IBAN; the UK bank code inside a UK IBAN is the first four characters of that bank's BIC.
• Changed details verified separately. A new IBAN or BIC sent by email or chat should be confirmed through a known contact before use.
• Intermediary details recorded. Where the payee's bank names a correspondent, keep it with the payment record.

If a payment is delayed or the payee says it never arrived, the overseas supplier invoice checklist and how to track a SWIFT payment cover the next steps. For how the message itself travels, see how SWIFT payments work.

FAQ

Do I need both an IBAN and a BIC?

For many international payments, yes: the IBAN identifies the payee's account and the BIC identifies the payee's bank. Requirements vary by route, so follow the instructions of the paying bank.

Does the United States use IBANs?

No. US accounts are identified by a domestic account number together with a nine-digit ABA routing number. For an international wire, ask the payee's bank which details it requires.

How many characters is an IBAN?

Up to 34, but each country has a fixed length. German and UK IBANs have 22 characters, UAE IBANs 23 and Saudi IBANs 24.

What does XXX at the end of a SWIFT code mean?

It is the branch identifier for the head office. An 8-character BIC and the same BIC followed by "XXX" identify the same institution.

Is a sort code the same as a routing number?

They play a similar role in different countries. A UK sort code has six digits and identifies an institution and branch; a US ABA routing number has nine digits, including a check digit, and identifies a bank.