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.
An IBAN is a unique identifier for bank accounts used to facilitate international payments. Predominantly used in Europe, IBANs help banks process cross-border transactions accurately and efficiently. They are distinct from traditional account numbers and SWIFT/BIC codes.
An IBAN can have up to 34 alphanumeric characters. Its length and format vary by country. For example:
You can locate your IBAN on your bank statements or through your online banking platform. If you’re unable to find it, contact your bank for assistance or use an online IBAN calculator.
While IBANs are primarily used in Europe, some countries outside Europe also adopt this system, such as the UAE, Israel, and Ukraine. However, banks in countries like the USA, Australia, China, and New Zealand do not use IBANs. Instead, they rely on routing numbers and SWIFT codes for international transactions.
Here is the list of countries which are in the IBAN system in the IBAN registry
Sharing your IBAN is safe and necessary for receiving international payments. It cannot be used to withdraw money from your account, only to deposit funds. Be cautious, however, with sharing sensitive information such as your credit card number, CVV, and expiration date.
IBANs were introduced to standardize the way bank accounts are identified internationally, reducing errors and delays in processing cross-border payments. This standardization began with ISO 13616:1997 and has been updated to the current ISO 13616-2:2007.
SWIFT codes (or BIC codes) identify banks, while IBANs identify specific bank accounts. The SWIFT network, established before IBANs, handles most international transfers but often requires additional account details such as the IBAN.
The Single Euro Payments Area (SEPA) enables euro transfers across 36 countries. SEPA transactions require both an IBAN and a SWIFT code. Not all European banks participate in SEPA, so it’s important to verify your bank's membership.
The cost of sending money internationally varies based on the transfer method (SWIFT, SEPA, or services like RBK Payments) and currency conversion requirements.
RBK Payments offers a secure, fast, and cost-effective way to manage international transactions. With our multi-currency accounts, you can send and receive payments globally without high fees or long delays. Most transfers clear within one day, ensuring your money reaches its destination swiftly.
For more information on how RBK Payments can streamline your global transactions, sign up today or speak with one of our specialists. Enjoy seamless international payments with competitive exchange rates and minimal fees.
Explore the benefits of RBK Payments for your global transactions and experience the efficiency and security of our services. Sign up for a free account today.