What are BIC and SWIFT codes?

When engaging in international transactions, a standardised system is necessary to ensure accurate and efficient processing. An International Bank Account Number (IBAN) serves this purpose, especially across Europe. This guide will help you understand IBANs, their structure, and their role in global payments.

• What is SWIFT?
• What Does a SWIFT Code Look Like?
• Where to Find Your SWIFT Code
• Is a BIC the Same as a SWIFT Code?
• What is an IBAN?
• Alternatives to SWIFT
• Try RBK Pay for Faster and Cheaper Global Payments

What is SWIFT?

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global messaging network utilized by financial institutions to securely and accurately exchange information about financial transactions. Founded in 1973 and headquartered in Belgium, SWIFT has revolutionized international banking by providing a standardized and secure means of communication.

SWIFT’s Role in International Trade:

SWIFT is integral to global commerce. It ensures that transactions across borders are processed efficiently, enabling businesses to operate internationally with greater ease. From multinational corporations to small businesses, SWIFT’s standardized messaging system supports a wide range of transaction types, including:

What Does a SWIFT Code Look Like?

A SWIFT code, also known as a BIC (Business Identifier Code), is an alphanumeric code comprising 8 to 11 characters. Here’s the breakdown:

• Bank Code (4 letters): Identifies the bank.
• Country Code (2 letters): Indicates the country of the bank.
• Location Code (2 letters): Specifies the city of the bank.
• Branch Code (3 optional characters): Identifies the specific branch.

For example, the SWIFT code "RBKPUS33XXX" would be interpreted as follows:

• RBKP: Bank code for RBK Pay.
• US: Country code for the United States.
• 33: Location code for a city within the U.S.
• XXX: Optional branch code (not always included).

Where to Find Your SWIFT Code

Finding your bank’s SWIFT code is straightforward:

• Bank Statements: Often listed on your bank statements.
• Online Banking: Available through your bank’s online platform.
• Customer Service: Contact your bank directly to request it.
• Bank's Website: Many banks list their SWIFT codes on their websites.

Is a BIC the Same as a SWIFT Code?

Yes, BIC (Business Identifier Code) and SWIFT codes are interchangeable. Both terms refer to the unique code used to identify a specific bank during international transactions.

What is an IBAN?

• An IBAN (International Bank Account Number) is a unique identifier for an individual bank account in cross-border transactions. While a SWIFT code identifies the bank, an IBAN ensures the payment reaches the correct account. An IBAN can contain up to 34 alphanumeric characters, including:
• Country Code (2 letters): Indicates the country of the account.
• Check Digits (2 numbers): Used to validate the IBAN.
• Basic Bank Account Number (BBAN): Includes the bank and account number specifics.

Alternatives to SWIFT

While SWIFT is a dominant player in international transactions, it is not the only option. The drawbacks of SWIFT include potential delays and higher fees. Alternatives include:

• SEPA (Single Euro Payments Area): For euro transactions within Europe.
• Cryptocurrencies: For borderless, decentralized transfers.
• RBK Pay: Offers a modern, cost-effective solution for international payments with faster processing times and lower fees compared to traditional SWIFT transfers.

Try RBK Pay for Faster and Cheaper Global Payments

RBK Pay provides an efficient alternative to SWIFT, streamlining global transactions with reduced costs and quicker processing. As businesses look for more agile and economical payment solutions, RBK Pay stands out by offering:

• Lower Transaction Fees: More affordable than traditional SWIFT transfers.
• Faster Processing Times: Ensures quicker access to funds.
• User-Friendly Interface: Simplifies the process of sending and receiving international payments.

RBK Pay powers thousands of fast-growing global businesses worldwide. If you'd like to join them, sign up in few clicks.