What is an IBAN?
The IBAN, or International Bank Account Number, has been designed to reduce transaction errors when transferring money internationally. An IBAN is an alphanumeric code consisting of the bank name, branch, routing code and account number. It is used to identify the account of a customer at a bank when sending money from an account in one country to an account overseas. Verifying your beneficiary’s IBAN number will determine the difference between a payment arriving safely at its destination or getting lost in the system.
Although the format differs country to country, IBAN numbers will contain the following information:
Country code
Account number
Bank identifier code
Check digits
Why would you need an IBAN?
If you are making an international payment to a bank account in any of the 80 countries that use IBAN numbers, you may be required to provide this information.
Another globally recognised, standardised method of identification when making international payments is BIC or SWIFT codes: you can find out more about them here.
Both SWIFT codes and IBANs are crucial components of transferring money to a foreign country and both systems have effectively enhanced the process of sending cross-border money transfers.
An IBAN converter works much like an IBAN calculator as it uses information such as national bank account number - also known as Basic Bank Account Number or BBAN - to convert bank details into the relevant International Bank Account Number.
How do you convert an IBAN?
An IBAN converter works much like an IBAN calculator (link to IBAN calculator article) as it uses information such as national bank account number - also known as Basic Bank Account Number or BBAN - to convert bank details into the relevant International Bank Account Number.
Depending on the country you are located in IBAN conversions will be conducted by requesting some, or all, of the following information:
Sort code
Account number
Bank/branch code
Bank name
Due to technological advancements, free online converter tools are designed to take this limited banking information and convert it into the IBAN required to successfully process cross-border transactions.
Verify the results of an IBAN converter by using an IBAN checker to make sure the correct bank or financial institution has been selected.
Summary
This guide has been written in an attempt to present the basic information required for a customer to issue a successful international money transfer, albeit through a bank or with a money transfer service like the ones listed on our companies page. Readers interested in discovering the best value deal for their global remittance, should use our comparison tool to find out more.
