Ben Todd | Jun 2, 2017 | 0
What is IBAN?
What is IBAN? IBAN stands for International Bank Account Number. It is the sort of thing you will need if you are dealing with money transfers, payments and receipts from countries such as Hungary, Liechtenstein, Norway, the United Kingdom, Switzerland and European countries.
What Is IBAN And Why Does It Have My Account Number In It?
An IBAN number gives the account number of the person/company in question, and it gives a country code too. When foreigners wish to identify your account in your country, and visa versa, an IBAN code makes it much easier to find you and to double check that your information is correct.
What Is Your IBAN Made Up Of?
Your IBAN will have a maximum of 34 characters that are made of up letters and numbers. In the code, you will find two letters that identify the country and two numbers that are a control key. There are then up to 30 letters and numbers that identify the account number and the bank that holds the account.
In the image below, you can see how an IBAN number is made up. Many of the numbers may seem familiar to the point where you may be able to guess most of your IBAN code, but your bank is the one that issues it to you, and there is no way of being 100% sure how it will look until it is issued. The image below gives you a nice example of how an IBAN number is made up of different elements, such as bank codes, account numbers and so forth.
An IBAN Does Not Replace Your Account Information
Despite the fact that you can find some of your account information in you IBAN code, it does not replace your bank information when you are filling out forms or sending/receiving money. Your IBAN is an extra bit of information that is used to identify an overseas account, and to check that the account information matches the IBAN number (to lower the possibility of human errors).
How Do I Get An IBAN Code?
Your bank assigns your IBAN code to you when you sign up for your account. Despite the highly structured way that the IBAN is set up, you cannot calculate your IBAN yourself.
An IBAN is a little like a BIC (Bank Identifier Code) or SWIFT code because it helps to identify overseas banks easily and quickly. The collective members of the SWIFT network are the ones who administer the BIC system.
Which Countries Require An IBAN Code?
If you live in one of the countries listed below, or if you are setting up a financial/bank account in one of the countries listed below, then you will be given an IBAN code. If you are going to send money to an account in one of the countries listed below, then you are going to need the account holder’s IBAN code.