WHAT IS IBAN
International Bank Account Number
Alphanumeric identifier for a bank account in any participating country, structure defined in ISO 13616
The International Bank Account Number (IBAN) is an internationally agreed system of identifying bank accounts across national borders to facilitate the communication and processing of cross border transactions with a reduced risk of transcription errors. An IBAN uniquely identifies the account ...
PERSONAL FINANCE BANKING
International Bank Account Number (IBAN)
By ADAM HAYES Reviewed by KHADIJA KHARTIT Updated Mar 28, 2021
What Is an International Bank Account Number (IBAN)?
An IBAN, or international bank account number, is a standard international numbering system developed to identify an overseas bank account. The number starts with a two-digit country code, then two numbers, followed by several more alphanumeric characters. Noter that an IBAN does not replace a bank's own account numbering, as it’s only meant to provide additional information that helps in identifying overseas payments.
KEY TAKEAWAYS
An international bank account number (IBAN) is a standard international numbering system for individual bank accounts around the world.
Banks in Europe originally developed the system to simplify transactions involving bank accounts from other countries.
An IBAN is used to identify an individual account involved in the international transaction.
The IBAN also acts as a method of verifying that transaction details are correct.
How International Bank Account Numbers Work
The IBAN number consists of a two-letter country code, followed by two check digits, and up to thirty-five alphanumeric characters. These alphanumeric characters are known as the basic bank account number (BBAN). It is up to the banking association of each country to determine which BBAN they will select as the standard for that country's bank accounts. However, only European banks use IBAN, although the practice is becoming popular in other countries.
An IBAN number will be used when sending
An IBAN number will be used when sending interbank transfers or wiring money from one bank to another, especially across international borders. In the register of countries currently using the IBAN system, several examples are as follows:
Albania: AL47 2121 1009 0000 0002 3569 87411
Cyprus: CY 17 002 00128 00000012005276002
Kuwait: KW81CBKU0000000000001234560101
Luxembourg: LU 28 001 94006447500003
Norway: NO 93 8601 11179474
The U.S. and Canada are two major countries that do not use the IBAN system; however, they recognize the system and process payments according to the system.
IBAN vs. SWIFT Codes
There are two internationally recognized, standardized methods of identifying bank accounts when a transfer is being made from one country to another: the International Bank Account Number (IBAN) and the Society for Worldwide Interbank Financial Telecommunication (SWIFT) code. The difference between the two methods lies in what they identify.
A SWIFT code is used to identify a specific bank during an international transaction, whereas IBAN is used to identify an individual account involved in the international transaction. Both play an essential role in the smooth running of the international financial market.
The SWIFT system pre-dates attempts to standardize international banking transactions through IBAN. It remains the method by which the majority of international fund transfers are made. One of the main reasons for this is because the SWIFT messaging system allows banks to share a significant amount of financial data.
This data includes the status of the account, debit and credit amounts, and details related to the money transfer. Banks often use the bank identifier code (BIC) instead of the SWIFT code. However, the two are easily interchangeable; both contain a mix of letters and numbers and are generally between eight and 11 characters in length.
Requirements for International Bank Account Numbers
The IBAN developed out of diverging national standards for bank account identification. Varying uses of alphanumeric forms to represent specific banks, branches, routing codes, and account numbers often led to misinterpretations and/or omissions of critical information from payments.
To smooth this process the International Organization for Standardization (ISO) published ISO 13616:1997 in 1997. Shortly after the European Committee for Banking Standards (ECBS) published a smaller version, believing the original flexibility allowed in the ISO version was unworkable. In the ECBS’s version, they allowed only upper-case letters and a fixed-length IBAN for each country.
Since 1997, a new version, the ISO 13616:2003, replaced the initial ECBS version. A subsequent version in 2007 stipulated that IBAN elements must facilitate the processing of data internationally, in both financial environments and among other industries; however, it does not specify any internal procedures, including but not limited to file organization techniques, storage media, or languages.
Frequently Asked Questions
Who uses IBAN?
IBAN was first created to facilitate electronic payments between banks across the Eurozone. Since then, it has expanded worldwide, although not all banks and not all regions have joined the standard and you may still need to rely on alternative system such as SWIFT instead. North American, Australian, and Asian countries do not use the IBAN for domestic money transfers, and will only do so when sending a payment to a country that has adopted the IBAN.
Why was IBAN created?
IBAN was developed to reduce errors and improve verification of cross border payments by reducing rejected payments, transfer delays, and associated bank charges and fees.
What does an IBAN number look like?
An IBAN number contains up to 34 alphanumeric characters. It is prefaced by a two-character country code, two check digits, and a Basic Bank Account Number (BBAN) that contains specific bank and account details. The format of the BBAN portion various from country to country, which will typically include a bank code and branch code.
How can I get an IBAN?
You can request an IBAN if you are a customer of a bank in an IBAN region. Note that an IBAN can only be used to receive payments, and is not used when making withdrawals.
LIST OF SOME WORKING IBANS
DE64701500000016128662
DE89701500000015116890
DE50701500001002186391
DE68700800000630661500
DE50701500001001771425
DE3710010010099582012
DE51300209000609824286
DE63300209003237537095
DE57300209002205671573
DE47600100700890222709
DE45701500000054137096
DE92701500001001080611
DE82700202700664504537
DE54700202700043759264
DE307015000010028760
DE81700800000725267500
DE51700202700658683543
DE86760100850800893853
DE70700800000550499500
DE29700700240360399000
DE40760693690000648795
DE22360100430240081433
DE37702501500027072180
DE50700905000005997720
DE47701500000107120982
DE86760100850800893853
DE11700700240422111500
DE37360100430950154434
DE89700400410313408700
DE76701900000001337092
Try them they work for more 💥 leave a comment below
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