What is an IBAN?
- IBANs can be used for worldwide payments but are most commonly used in Europe.
- All cross-border euro priority payments within the EU or the European Economic Area must quote the customer's BIC and IBAN..
- The structure of an IBAN is consistent, but its length—up to 34 characters—depends on the national standards of the country in which it is issued.
- An IBAN (International Bank Account Number) follows a specific structure to ensure smooth international payments. Here’s how the components break down:
- GB – Country Code: Identifies the country where the IBAN was issued and where the account is held (in this example, the UK).
- 11 – Check Number: Used for integrity checks by the banking institution; it varies with each IBAN.
- BBBB – Bank Code: Identifies the customer’s bank.
- 333333 – Sort Code and Account Number: Corresponds to the account into which funds should be transferred. This matches the customer’s UK bank account details.
- 44444444 – Account Number: The customer’s specific UK account number.
What is a SWIFT code?
- If you don’t provide the correct IBAN and BIC/SWIFT code, additional fees may be charged back to Prodigy Finance. Additionally, euro payments without these details could be returned or rejected, potentially incurring a fee.
- When sending an international bank transfer, we may ask you for a SWIFT code. This code helps identify the country, bank, and branch where your recipient’s account is held. Without this information, your payment may not reach the correct destination.
- SWIFT codes can be either 8 or 11 characters long and follow this structure:
AAAA BB CC (DDD)
- AAAA – Bank Code: Identifies the bank.
- BB – Country Code: Indicates the country where the bank is located.
- CC – Location Code: Specifies the bank’s location.
- DDD – Branch Code (Optional): Identifies a specific branch, if applicable.
How do I find a SWIFT code?
The SWIFT code will be included in your Proof of Payment. If it’s not provided, you will need to request it to track the payment, as payments could be blocked during screening without it.
Additionally, you can find the SWIFT code on page 2 of your monthly statements for easy reference.
Is BIC the same as SWIFT?
Yes, that’s correct! A BIC (Bank Identifier Code) is the same as a SWIFT code. Both are alphanumeric codes that help identify the country, bank, and branch of the recipient’s account. These codes play a crucial role in ensuring the accurate and secure routing of international money transfers.
So whether you encounter the term BIC or SWIFT code, they refer to the same thing and provide essential information for processing cross-border payments.
If the Bank is Rejecting the SWIFT Code
If the bank is rejecting the SWIFT code, it’s likely because their system hasn’t been updated to include the new code. In this case, advise the customer to contact their bank to ensure the correct SWIFT code is used and that their system is updated accordingly.
What if an 11-digit SWIFT Code is Required?
If the bank requires an 11-digit SWIFT code, the branch code (which is optional) can be included at the end of the SWIFT code. If the branch code isn’t available, they can simply add “XXX” to the end of the SWIFT code provided on their statement.
For example, if the SWIFT code is BARCGB22, it would become BARCGB22XXX for an 11-digit version.