How does an IBAN work?
IBAN is an acronym that stands for International Bank Account Number. This is a code made up of a series of alphanumeric characters that identifies a bank account held in one of the 80 regions which use IBANs.
All bank accounts within the European Union must be assigned an International Bank Account Number. Elsewhere, the IBAN system has been widely adopted in developing countries in the Caribbean, Middle East and Africa.
Did you know...
The IBAN system was originally developed to simplify the money transfer process for people sending money from a bank in one European country, to another bank in the Eurozone. The idea to create a system of internationally recognised bank codes preceded the SEPA Zone, which was introduced in 2008. Both systems were designed to help individuals and companies who were sending and receiving money from other EU countries.
Find out more about the SEPA zone hereWhat is an IBAN generator?
IBAN generators are widely available on the internet, but how do they work? In terms of functionality, an IBAN generator is similar to an IBAN calculator in so much as they can both be used to convert alternate bank details into the International Bank Account Number. Thanks to special software which has been developed to calculate the details needed for an international money transfer, to remove the chance of errors or delays.
How do you generate an IBAN?
IBAN generators require different types of bank details depending on the country. Generally speaking, the domestic account number and bank code of a bank account can be used to generate an IBAN. Alternatively, an IBAN can also be found in any of the following places:
Online banking
Bank statements
On a personal check
Enquiring with your bank
Summary
When using an IBAN generator or calculator it is important to double check the information you are provided. This is easily done: make sure the length and format correctly matches the country’s IBAN structure. We would also recommend using an IBAN checker after generating an IBAN, to verify and validate the information before sending money overseas.
