There are two internationally recognised, standardised methods of identifying bank accounts when a transfer is being made from one country to another: an International Bank Account Number (IBAN) and a Society for Worldwide Interbank Financial Telecommunication (SWIFT) code. The difference between the two methods lies in what they identify.
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 three to five alphanumeric characters. However, an IBAN does not replace a bank's account number, as it is only meant to provide additional information that helps in identifying overseas payments.
SWIFT Code
A SWIFT (Society for Worldwide Interbank Financial Telecommunication) code exists to help banks communicate securely among themselves. Banks within the SWIFT network can send secure payment orders to each other to allow them to safely move money between accounts that are based in different countries.
An essential feature of this system is the SWIFT code – a unique identifier which shows the exact bank you are sending money to, including details of the country in which the bank is based, its location and even branch number.
SWIFT codes all follow the same format and are 8 or 11 characters long. They are made up of different pieces of information to guide your international payment.
