MoneyTransfers
/IBAN Transfers /Converting IBAN to BIC

Converting IBAN to BIC

Whether you are sending money to friends and family overseas, or making mass business payments, it is easy to get confused when dealing with various foreign bank details. In this guide we explain how to differentiate between these two banking terms, as we consider the possibility of converting an IBAN into a BIC code.

April Summers
Author 
April Summers
4 minutes
February 15th, 2023
Disclosure
Money Transfer Comparison
Fill in the form and we’ll find you the best rates.
Send

IBAN vs BIC: What is the difference?

IBAN stands for International Bank Account Number, a type of identification code used by banks and financial institutions in 80 regions around the world. An IBAN consists of an international component, a country code, check digits and a domestic bank account number. This information helps identify an individual’s bank account, while a Bank Identifier Code (BIC) simply identifies the bank that an account is held with. Both are essential for ensuring funds are transferred to the correct bank account and both are written in a standard, internationally recognised format. They help banks process international payments automatically, in a quick and secure way.

What does an IBAN look like?

Every country using IBANs will issue the same length codes, but the number of total characters in an IBAN varies by country. In the UK, an example of the IBAN format is: GB14HBUK40127512345678

The first two characters (GB) refer to the ISO country code, followed by two check digits (14), four digit bank code (HBUK) six digit sort code (401275) and eight digit account number (12345678).

What does a BIC code look like?

BIC is an acronym for Business Identifier Code, and it is used to identify the bank related to the account. Also known as a SWIFT (the Society for Worldwide Interbank Financial Telecommunication) code, the two terms are used interchangeably.

A BIC code is typically 8 - 11 characters. For example, in the UK, a BIC could appear as follows: AAAABBCCDDD

The first four letters represent the bank’s name (AAAA), the next two characters are the country code (BB), followed by two characters that indicate where the bank’s head office is located (CC) and finally the three digit branch code (DDD).

As a component of the SWIFT network, which has existed for over 40 years, BIC codes provide a secure way for banks to communicate between themselves across the world.

Will I need both an IBAN and a BIC?

BIC codes existed before IBAN numbers were developed and countries that recognise the IBAN system will likely ask for both codes when processing a transaction in a foreign currency.

  • Every country within the European Union (EU) uses IBAN, so if you are making a Euro transfer you will need both IBAN and BIC

  • Other countries across Central and South America, Africa and the Middle East have adopted the IBAN system and may request both an IBAN and BIC

  • Canadado not use IBANs, instead processing international money transfers using their own systems. The United States however do use IBANs to process international payments.

Any reputable service provider, like the ones listed in our Top 10 Money Transfer Companies, will let you know the specific bank details which are needed, to guarantee your global remittance is safely and securely processed.

How do I find a BIC using an IBAN?

An IBAN contains a bank code but this is not branch specific information which means it is not possible to extract a BIC code from an IBAN. This is because a bank code will vary based on each individual account. However, wherever you find your IBAN, you will also find your BIC or SWIFT code stated in the same place.

This information can be found via the following:

  • Visiting your bank

  • Calling your bank

  • Logging into your online bank account

  • Checking bank statements or personal checks

Summary

There are lots of different banking acronyms that crop up during the money transfer process, albeit a domestic transferor an international remittance. We strive to answer the most pressing questions our customers have about global payments and banking terminology. While we encourage our customers to utilise the high-quality services offered by money transfer companies such as WorldRemit, Wise, XE, Currencyfair, Currencies Direct, Key Currency, Instaremand TorFX, we understand that banks may still be involved with some online money transfers.

We encourage all our readers to use the MoneyTransfers comparison engine to find out which service provider offers the best deal to suit their unique cross-border needs. For more information on IBANs and BIC codes, why not have a read of our other useful guides, as found below.

Related content

Article Factchecked by Elliot Laybourne on 20th July 2022\nElliott is a former investment banker with a 20 year career in the city of London.\n \nDuring this time he held senior roles at ABN Amro, Societe Generale, Marex Financial and Natixis bank, specialising in commodity derivatives and options market-making. \n\nDuring this time, Elliott’s client list included Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and the Pennsylvania State Public School Employees Retirement System, amongst others.

Related Content

An IBAN, or international bank account number, is an international system that was developed as a way of identifying foreign bank accounts when making overseas payments.
October 6th, 2023
An IBAN - International Bank Account Number - is used for identifying a specific bank account for international money transfers and transactions. Along with your SWIFT/BIC code, any time you are sending your money to another bank account abroad, you are likely to be asked for the corresponding IBAN for that account. In this quick guide, we’ll cover how to find your account number from your IBAN.
December 21st, 2023
January 11th, 2024
In this guide we will be discerning the main similarities and differences between an IBAN and an account number. These are both types of bank codes called upon during money transfers: one is designed to streamline cross-border transactions, while the other is used to facilitate domestic payments.
June 15th, 2023
IBAN is an acronym which stands for International Bank Account Number, a standardised system used to identify bank accounts across Europe, the Caribbean, the Middle East and North Africa. At present, 82 countries use IBANs; for some it is mandatory, while for others it is simply recommended.
November 29th, 2023

Contributors

April Summers
April Summers is an experienced Senior Financial Content Editor who combines a wide range of professional skills with her academic background in English literature and journalism. Her professional background includes key positions at the Daily Star, LBB Online, and Entertainment Daily UK, which have sharpened her financial and journalistic expertise.