Swift Code vs. IBAN

Sending money overseas should never feel like debugging a secret code. It must be swift (pun intended).

People often struggle with complex banking terminology and codes, such as SWIFT and IBAN. And it shouldn’t be that way.

Let’s clear up the confusion by helping you understand the difference between a SWIFT code and an IBAN, when to use each one, and how they help your money travel safely across borders.

Here’s a TLDR section that clarifies the differences between the two:

What is a SWIFT code?

SWIFT, or the Society for Worldwide Interbank Financial Telecommunication, is a highly secure, global messaging system that links over 11,000 banks and financial institutions worldwide.

The SWIFT code is basically your bank’s unique international address. It tells the network exactly which bank (and sometimes which branch) to deliver your funds to.

In other words, it helps your money find its way safely from one country to another. You can think of it like a GPS, guiding the transfers to the right destination.

Here’s how it breaks down:

• The first 4 letters represent the bank
• The next 2 letters show the country (like CA)
• Then, the next 2 characters indicate the location
• An optional 3-character string specifies the branch

For example, if you’re sending money to a bank in Toronto, your SWIFT code might look like ROYCCAT2. You can use this code to:

• Visit your bank’s website.
• Check your bank statement
• Log in to your online banking

For Canadians, it’s imperative to know your SWIFT code for international transfers since Canada doesn’t use IBANs.

What is an IBAN?

If you’re sending money to Europe or certain countries in the Middle East, you might need an International Bank Account Number (IBAN). But what is it, exactly?

It’s a globally standardized system used to identify individual bank accounts across borders. You can think of it like an international passport that ensures your money lands in the exact account it’s meant for, without getting lost in the shuffle.

An IBAN can be up to 34 alphanumeric characters, with each part telling a story:

• The first 2 letters indicate the country (e.g., GB)
• The next 2 digits are check numbers used to detect errors
• The remaining characters identify the bank, branch, and your specific account

For example, a UK IBAN might appear as follows: GB29NWBK60161331926819.

IBANs enable banks to verify account details quickly, thereby reducing errors, delays, and associated fees.

Key Differences between SWIFT Code and IBAN

SWIFT codes and IBANs work together but serve very different purposes in international money transfers. Here’s a simple breakdown that shows you the difference between the two:

What do they identify?

A SWIFT code identifies the bank and branch where your money is headed. An IBAN identifies the specific bank account to which the funds are being sent.

What’s the format and length?

• SWIFT codes have 8 to 11 characters (letters and numbers)
• IBANs can be up to 34 alphanumeric characters, varying by country

Where are they used?

• SWIFT codes are used worldwide, including Canada and the US
• IBANs are mostly used in Europe, the Middle East, and some other countries, but not Canada or the US

When do you need them?

• For most international transfers, a SWIFT code is essential
• An IBAN is required when sending money to countries that use this system

What’s their impact on transfer?

• Both codes help speed up transfers and reduce errors
• Missing or incorrect codes can cause delays or loss of funds

All in all, the SWIFT code is the “who” (the bank’s identity) and the IBAN is the “where” (the specific account).

How to Use SWIFT Code and IBAN for International Transfers

Here’s how to use SWIFT codes and IBANs to make your transfer smooth and stress-free:

Get the right details

Ask your recipient for their SWIFT code and, if applicable, their International Bank Account Number (IBAN) and make sure you double-check the info.

Enter the details carefully

When setting up your transfer, please input the SWIFT code and IBAN exactly as provided, without any typos or errors.

Choose your transfer method

Whether through a bank, an app, or using a platform that supports these codes and international transfers.

Track your transfer

Many services allow you to track your payment in real-time. You can use this to stay updated and catch issues early.

Fix errors

If you notice an error (such as an incorrect SWIFT code), please contact your provider immediately, as transfers with incorrect details can be delayed or rejected.

SWIFT Code and IBAN Formats for Popular Countries and Banks

Let's outline the formats for SWIFT codes and IBANs in various countries and provide examples from popular banks.

How SWIFT Codes and IBANs work for Canadians

The IBAN won’t work for people in Canada because Canadian banks don’t use them. Instead, you’ll need the recipient’s SWIFT code and bank account number for international transfers.

You can find your SWIFT code on your bank statement, on the bank's website, or by contacting customer support.

Once you are 100% sure of your SWIFT Code, you can proceed to the next steps. That’s where RemitBee comes in.

Whether you’re sending money to family overseas or managing business payments, RemitBee makes it easy.

• Supports SWIFT-based transfers globally with no fees on transfers over $500.
• Offers competitive exchange rates that maximize the value of your transfer.
• Ensures fast delivery so your money arrives when it’s needed.
• Provides a secure, transparent, and hassle-free platform.
• Simplify your global money transfers with RemitBee by getting started today.

Frequently Asked Questions

Here are some FAQs regarding SWIFT code and IBAN:

Can I use an IBAN instead of a SWIFT code?

No, IBAN and SWIFT codes serve different purposes; both may be needed depending on the country.

Can I get a SWIFT code from an IBAN?

Not directly; IBAN shows the account details, but the SWIFT code must be obtained separately from the bank.

What happens if the SWIFT code is wrong but the IBAN is correct?

The transfer may be delayed or rejected because the bank or branch can’t be identified correctly.

Do US banks use IBAN?

No, US banks do not use IBAN. They use SWIFT codes for international transfers.