Glossary
SWIFT code (BIC): what it is, its format and SWIFT vs IBAN
A SWIFT code, formally a Business Identifier Code (BIC), identifies a bank or financial institution in international payments. It is defined by ISO 9362 and has 8 or 11 characters: a 4-letter institution code, a 2-letter country code, a 2-character location code and an optional 3-character branch code. The BIC names the bank; the IBAN names the account.
- SWIFT code (BIC)
- An 8- or 11-character Business Identifier Code under ISO 9362 that identifies a bank or other institution in payment messages, mainly international transfers over the Swift network.
How is a SWIFT/BIC code structured?
Each part of the code has a fixed position. The 8-character version points to the institution's main office; the 11-character version adds a branch or department.
| Characters | Part | Meaning |
|---|---|---|
| 1-4 | Institution (party prefix) | Letters or digits chosen by the institution |
| 5-6 | Country code | ISO 3166-1 alpha-2 country, for example DE or NL |
| 7-8 | Location (party suffix) | Letters or digits for the location |
| 9-11 | Branch (optional) | XXX or omitted for the head office |
What is the difference between SWIFT and IBAN?
The BIC identifies the bank, the IBAN identifies one account at that bank. An international transfer outside SEPA usually needs both: the BIC tells the network where to send the message, the IBAN tells the receiving bank whose account to credit. Swift itself is the cooperative that runs the messaging network; BIC is the standard identifier used on it and in other systems.
Do you need a BIC for SEPA payments?
No, in most cases. Under the SEPA Regulation (EU) No 260/2012, payment service providers may not require the payer to give the BIC for SEPA credit transfers and direct debits; the IBAN is enough, and the bank derives the BIC. Transfers to countries outside SEPA and in non-euro currencies still usually ask for it
General information, not legal or financial advice.
Frequently asked questions
Are SWIFT code and BIC the same thing?
Yes. BIC is the formal name under ISO 9362; SWIFT code is the everyday name, because the codes are registered by Swift as the ISO registration authority.
Why does a bank have both an 8- and an 11-character BIC?
The 8-character code identifies the institution; the 11-character code adds a branch. A code ending in XXX refers to the head office, so both forms usually reach the same place.
Where do I find my bank's SWIFT code?
It is shown in online banking next to your IBAN, on bank statements and on the bank's website. Swift also provides a public BIC search.
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