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A SWIFT code or bank identifier code (BIC) is the unique identifier code that financial institutions have. These numbers are used to send funds from bank to bank through the SWIFT network, often internationally.
A SWIFT code is actually an acronym, but it could easily be a descriptor for how swiftly it helps money move through this network.
SWIFT codes are unique 8- or 11-digit codes that banks and other financial institutions can use to identify themselves. It stands for the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a messaging system that financial institutions use to send transfer requests to one another.
Learn more about SWIFT codes, their formatting, how to find them, and more.
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A SWIFT number has either 8 or 11 letters and digits, and each represents something specific. They typically follow this format:
PayPal's US SWIFT code is PPALUS66XXX. In this SWIFT code example, the characters are:
The codes always follow this pattern, but sometimes a SWIFT code doesn't have any numbers in it. Some financial institutions also offer multiple services, and they use different SWIFT codes for each.
A SWIFT code is often needed when sending money internationally. The SWIFT network doesn't move or transfer funds. However, the sender uses the SWIFT code to send an encrypted message to the receiving financial institution to initiate the money transfer process.
There are ways to send funds across borders without a SWIFT code. But because the SWIFT network is widely used to facilitate international transfers, people commonly use terms like SWIFT payment or SWIFT transfer to refer to international money transfers, whether or not a SWIFT code is actually used.
There are many easy ways to find a bank or financial platform's SWIFT code, including:
An International Bank Account Number (IBAN) identifies a particular account at a financial institution. In contrast, the SWIFT code is the code for the financial institution itself. Both numbers, along with the recipient's name and contact information, may be needed when transferring money internationally.
IBANs tend to be longer, as they include the country code, a check code, and a basic bank account number (BBAN). These vary in length depending on the specific financial institution. For example, GB13 WXYZ 209312 437054, would be:
IBANs are popular in Europe, North Africa, the Caribbean, and the Middle East. However, banks in the United States have American Bankers Association (ABA) routing numbers instead. People with bank accounts in other parts of the world, including Australia, Canada, China, and New Zealand, use alternative identifiers.
SWIFT code | IBAN | Routing number | |
|---|---|---|---|
Full name | Society for Worldwide Interbank Financial Telecommunication code | International Bank Account Number | American Bankers Association (ABA) Routing Transit Number |
Purpose | Identifies a specific bank during international transfers | Identifies an individual bank account within a specific bank | Identifies a specific financial institution within the US banking system |
Format | 8 or 11 alphanumeric characters | Up to 34 alphanumeric characters | 9 digits |
Geographic use | Global | Primarily Europe, the Middle East, and parts of the Caribbean and North Africa | United States |
A SWIFT code is used for sending money overseas. It's the international ID card for your bank. This alphanumeric, 8-to-11-character code identifies your bank's country and location to the world. A routing number is a 9-digit, US-only code for domestic transactions like direct deposits or ACH transfers.
Understanding what a SWIFT code is helps remove the mystery of how money is transferred internationally. It’s a crucial piece of banking information. The key takeaway is to always verify the code you use to keep your money moving smoothly and without delay.
If you don’t have time to track down an 11-digit code every time you want to send funds internationally, consider an international money transfer app to simplify the process.
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