IBAN, the International Bank Account Number, is an international numbering system used to identify an overseas bank account. The code allows international identification and is unique to an individual bank account. In the US, it is exclusively used for international money transfers to countries that use international bank account numbers as it's not in use domestically.
The system aims to simplify and improve inter-bank communications, and it is a globally recognized standard — but not applicable in all cases. Scroll down to find out how to find your IBAN, what it is, and why it is used.
Bank statements: More often than not, IBAN numbers can be found on the bank statements.
Online banking: Some banks, most notably digital banks like Revolut, provide IBAN numbers in the banking app. Check your account details on your online banking application to see whether it's readily available.
IBAN calculators: You can use the official IBAN calculator by entering your country, bank code, and account number. Note that this service is only available for accounts that are based in countries included in the IBAN registry (and the US isn’t).
Contact your bank: You can ask your bank, or may have to visit a branch, to generate an IBAN number.
Money transfer services: Remittance providers like Wise allow users to set up global accounts with IBAN codes. This way, you can also save on transfer fees on the transfer.
What Is an IBAN Number?
European banks introduced IBAN to simplify international transactions by standardizing foreign account identification. However, they can also be used for domestic transfers. The number consists of a two-letter country code, two check digits, and up to 35 alphanumeric characters. This covers the country, the bank, and the individual account.
Why Was IBAN Created?
The idea behind IBAN was to reduce errors by improving the verification system.
The code ensures that the transfer details are correct while identifying the correct bank account. This way, the IBAN standard aims to minimize the costs and delays associated with fixing rejected payments. Though a globally recognized system, major economies like the US and China don’t use IBAN for domestic transfers. In such cases, an IBAN is only used for sending a transfer to a country that uses it.
Anatomy of an IBAN Code
Here’s the anatomy and some examples of an IBAN code;
[AA][BB][CCCC][DDDDDD][EEEEEEEE]
Costa Rica: [CR][23][0151][084100][26012345]
Denmark: [DK][95][2000][012345][6789]
Iceland: [IS][75][0001][1212][345631][08962099]
Two check digits [BB] are calculated based on a scheme called ISO 3166-1, a set standard to define codes for the names of countries and territories. The remaining characters are referred to as BBAN (Basic Bank Account Number).
BBAN, involving the last three components of an IBAN, has a fixed length for each country, and it identifies core account details:
1. the individual account,
2. the bank or financial institution,
3. and the countries.
Namely,
[CCCC] — refers to the bank code and identifies the bank
[DDDDDD] — identifies the bank branch
[EEEEEEEE] — refers to the account number, which can be 8 digits or fewer.
IBAN numbers are easily recognizable due to the country codes at the start, as none of the other bank identifiers have it at the start.
Which Countries Use the IBAN Number?
IBAN was developed to be used across the Eurozone region. Today, it is adopted by over 70 countries in and outside of the area, including Saudi Arabia, Turkey, Qatar, Guernsey, and Bosnia and Herzegovina. Most of these countries use IBANs to verify and facilitate both domestic and international transfers. This means that any transfers including these countries will require the recipient's IBAN number.
Major countries, including the USA, Australia, Canada, and New Zealand; and emerging markets like India or Mexico have not integrated it into their systems. In those cases, and also in the case of developing nations like Nigeria, banks generally generate IBAN codes for international transfers that require an IBAN code. IBANs sometimes, like in the case of Nigeria, link a foreign currency account only to receive international payments rather than a local currency account.
Learn More About Money Transfers to IBAN Countries
- You can choose from dozens of international money transfer providers (MTPs) to send money to the Republic of Ireland. The country is part of the European Union, ensuring a highly-regulated financial market. You can also use wire transfers and other alternatives, but there are reasons why MTPs are the best option.
- Italy is a part of the European Union, ensuring a huge number of money transfer services are available to send money to this country. This guide will discuss why this is the best method to send funds to Italy and how to pick the most suitable money transfer operator for your needs.
- There are a large number of international money transfer operators that support sending money to Poland. Some popular examples include Wise, XE Money Transfer, and Remitly. These providers can send funds to Poland fast while keeping the costs affordable.
- Brazil is a fast-growing major economy that offers many options for sending funds from abroad. The most popular choice is using international money transfer providers, such as Remitly, Wise or Ria Money Transfer. You'll learn everything about MTPs and how to use them to send money to Brazil in this guide.
- There are many ways to send money to the UK. But that's both a blessing and a curse because it's not easy to find the right one for you. This detailed UK money transfer guide compares all alternatives and explains the benefits of using international money transfer services. You'll learn why providers like XE Money Transfer, Azimo, and Instarem are better options than wire transfers and other options. Here's a detailed overview of how to send money to the UK!
- A perpetually in-demand holiday destination and a dream place for expats and pensioners for relocation, Spain is always in style, which means there are plenty of reasons to send money to the country — and luckily, plenty of ways to do it. We singled out Xe Money Transfer, TorFX, and Currencies Direct as the best options that meet varying requirements. Scroll down to find out why and learn everything there is to know on how to send money to Spain!
How Long Do IBAN Transfers Take?
IBAN transfers take between one to five days. Because an IBAN transfer is a bank transfer that includes at least one bank within the IBAN registry, it's not the fastest way to send money.
More often than not, the funds will be withdrawn from your account immediately, but that doesn’t mean that they will arrive at your recipient’s account right away. Unless your transfer is a domestic one or is within the SEPA region, it’s not likely to be instantaneous. It’s also worth noting that international money transfers are processed within business hours only. For faster transfers, you should make sure that you complete the transfer before your bank’s cut-off time.
There are three possible outcomes if you get the IBAN number wrong:
The number that you typed in doesn’t exist for any account in the world. In such cases, your payment will simply bounce back to you, but you may get a small fine.
The receiving bank recognizes that the name of the account holder and the IBAN number don’t match, and they will revert the payment back to you.
If you type in a number that does exist but is not the one of your recipients, and the bank hasn’t recognized the name on the account is different, then your payment will end up in a stranger’s account. You should contact your bank and the recipient bank as soon as you realize it’s the wrong number – but the likely scenario is that it could not be reverted without the accidental recipient’s permission.
If you need to type in an IBAN instead of copying and pasting it, type in on a verification tool first, and copy it from there when transferring money to avoid putting in the wrong number.
How Do I Find My IBAN Number?
More often than not, you can find your IBAN code on your bank statement, but if not, customers can check the bank’s website to request or generate one. You can also opt for an IBAN calculator, which generates your account’s code from other account information. Note that this service is only applicable to accounts in countries included in the IBAN registry.
For those who are not in the registry, like in the US, banks may ask customers to visit branches to arrange an IBAN payment. Alternatively, customers can opt for international money transfer services like Wise or VertoFX to open global accounts with IBAN codes. You’ll find that banks in countries that have not adopted the IBAN standard typically don’t generate the codes because it’s simply not necessary as they can accept payments with the account code and SWIFT code.
You can verify an IBAN and find the bank and potentially the branch associated with the individual account by an online IBAN checker. While they share the same information, IBAN differs from SWIFT codes and other bank-identifying codes and doesn’t replace them.
Also note that IBANs refer to the specific bank accounts, not the banks, though they identify the banks. So different bank accounts will have different IBANs.
The best way to find out someone else’s IBAN number is simply to ask – you would need a lot of account details to work it out yourself. If your recipient is also unsure, you can ask them to contact their bank and use a verification tool to ensure that it’s correct.
When Will You Need to One?
Countries in the IBAN registry use IBAN numbers for both domestic and international transfers, like those in the SEPA region, while others only use IBAN when an international transaction involves a country that uses it. You will need the IBAN number of the account you wish to transfer money to a beneficiary in one of those countries, regardless of the method of transfer, but may receive from those countries using SWIFT and account codes only. Note that requesting an IBAN code is a free-of-charge service, but not all banks offer it.
IBAN vs Other Bank and Account Identifiers
As we discussed previously, there are other bank identifiers like your account number, routing number, and your bank’s SWIFT/BIC codes. While some overlap and are used in tandem, they serve different purposes.
IBAN Number vs Account Number
The account number is a unique 8-digit number representing your domestic account. IBAN, on the other hand, is an extended code allowing international identification of your account, which also includes the account code along with other country and bank identifiers.
How are they different: IBAN identifies your account in an international network, whereas the account number identifies it within a domestic network.
You can find your account number through your IBAN: the last 8 digits of your IBAN is your unique account number.
IBAN Number vs SWIFT/BIC Code
SWIFT (Society for Worldwide Interbank Financial Telecommunication) number, much like IBAN, is a globally recognized standard — but they both identify different information.
How are they different: IBAN identifies your account for international transfers, whereas a SWIFT/BIC code identifies your bank only. Both are required for international transfers that include a country within the IBAN registry.
You can’t find the SWIFT code through your IBAN: IBAN includes digits from the SWIFT number but not the whole code. They both are required for a smooth transaction and are not interchangeable. Both codes are usually displayed together while viewing account information.
Banks also widely use the bank identifier code (BIC) instead of the SWIFT code; they are interchangeable and both involve between 8-11 alphanumeric characters.
IBAN Number vs Routing Number
The routing number system was developed by the American Bankers Association in 1910 and is still commonly used to identify US banks. The 9-digit code is unique to the bank’s location where it was issued and is separate from IBAN and SWIFT numbers. Only accounts from federally and state-chartered US banks are eligible to get a routing number, and it is necessary to send money to and within the United States.
How are they different: The routing number identifies a bank account within the network of registered US banks and is exclusively used for domestic transfers, as opposed to IBAN which is used across countries included in the registry for both international and domestic transfers among participating countries.
You can’t find your routing number through your IBAN: Routing numbers and IBANs are completely separate and different and don’t include any information about each other.
How to Find an IBAN Number from Your Bank?
Not every bank may offer IBAN codes, especially if the country they are located in doesn’t use the system. When accepting payments from countries that are in the IBAN registry, you do not have to supply one and will only need a SWIFT code and account number.
Danske Bank | |
|---|---|
Wells Fargo | |
Bank of America | |
Santander | |
Halifax | |
Barclays | |
Lloyds | |
HSBC | |
TCF Bank (Huntington) | Huntington (formerly TCF Bank) uses SWIFT code for international transfers |
Arab National Bank | |
Citibank | |
ANZ | |
ICBC | |
HDFC bank | |
Discover Bank | |
Metro Bank | |
Natwest | |
CIBC | CIBC only uses account number, transit number, and institution number |
Capital One | |
Airbank | |
US Bank | |
DNB | |
Payoneer | |
Wise (formerly TransferWise) | |
Revolut | |
Nationwide | |
ING Bank | |
Monzo |
