Sort Code vs SWIFT Code

Sort codes are used by British and Irish banks to identify the location of a domestic bank, so that financial institutions can recognise where the payment has originated from or validate where it is being sent to. Also known as sorting codes, or a national sort code (NSC) in Ireland, these codes can be found integrated into an IBAN (International Bank Account Number) but they have no relation to SWIFT or BIC codes.

SWIFT codes are created by the Society for Worldwide Interbank Financial Telecommunication network. They are used to identify the bank location, country, and branch number when initiating an international transfer.

A SWIFT code is an alternate format of a BIC (Bank Identification Code) and the terms are interchangeably used.

Sort codes are made of 6 numbers, divided into 3 pairs, for example: 12-34-56

SWIFT codes are a bit more complicated as they can range from 8 to 11 alphanumeric characters. These characters are divided into different subcategories: bank name, country, address and bank branch.

For example: AAAABBCCDDD

AAAA: Bank code. These 4 letters usually look like a shortened version of the bank name

BB: Country code. These two letters represent the country the bank is in

CC: Location code. These two characters will indicate where the bank’s head office is located

DDD: Branch code. The last three characters will indicate the specific branch of the bank

Sort codes are used by domestic banks and financial institutions only. They work by identifying accounts and providing instructions needed to route money transfers domestically within clearance organisations.

When a payment is sent via the SWIFT network, messages are passed between banks (as well as non-bank financial corporations) in a secure, encrypted way. Funds are not physically transported using the SWIFT network, only the instructions; this communication facilitates the money transfer.

Sort codes are used by UK and Irish banks only; they are only used for international transactions when the payment is sent via bank transfer.

SWIFT codes are used by 212 countries, all of whom utilise the SWIFT network. Over 11,000 financial institutions use this network; banks, foreign exchange brokers, clearing houses, depositories, brokering institutes, trading houses and asset management companies.

Sort codes can be found on bank-issued cards, statements and via online banking. For customers still using cheque books, sort codes are also printed here as well.

SWIFT codes can be found on bank statements and by logging into online banking accounts. Alternatively, customers can contact the bank directly to confirm the SWIFT code.