Are you a financial investor, an international business owner or simply someone with international transactions? In banking transactions you often hear the term IBAN number? So what is IBAN? Find out by reading the following article:
Table of Contents
- 1 What is IBAN? What is IBAN number?
- 2 IBAN number structure convention
- 3 IBAN codes of some major countries in Europe
- 4 What is the meaning of IBAN number code?
- 5 Which transactions use IBAN code?
- 6 What does BIC/SWIFT bank code have to do with IBAN code?
- 7 FAQ
- 8 Conclusion
What is IBAN? What is IBAN number?
IBAN stands for International Bank Account Number. IBAN is an identifier number issued by ISO (International Organization for Standardization) and European Committee for Banking Standards (European Banking Standards Organization).
The IBAN number is issued based on the rigorous standard ISO 13616. Since its issuance, the IBAN number has only been used for money transfers within the European region. However, due to the benefits of the IBAN number, up to now, there are 171 countries in the world using this number.
IBAN number structure convention
The structure of IBAN includes MN KT BBAN in which:
- MN is the country code, consisting of 2 letters, the first 2 digits (DE) indicate the country code. For example, DE stands for Germany, FR (France), ES (Spain).
- KT is a check code, consisting of 2 digits from 00 to 99 (only code for checking).
- BBAN is the next 8 digits (eg 10000000) which is the bank code in that country.
- The next 10 digits (1234567890) are individual account numbers in that country. Example: In Germany IBAN maximum 10 digits, France, Italy 27 characters, Belgium 16 characters
IBAN codes of some major countries in Europe
The IBAN code is widely used in the European community. Thanks to IBAN, transactions take place quickly and accurately. Here are the IBAN codes of some European countries today:
|Pepublic of Cyprus||CY||CY||EUR|
|Saint Pierre and Miquelon||PM||FR||EUR|
What is the meaning of IBAN number code?
The IBAN number is a great initiative for the banking and financial industry around the world. An IBAN number sequence will provide the following benefits:
- Helps to limit errors and confusion in the transaction process between domestic and international banks.
- Ensure consistency in the worldwide banking system.
- Facilitate transactions to take place quickly and smoothly.
Which transactions use IBAN code?
In Philippines’s financial market, IBAN numbers have not been widely used. Currently, IBAN numbers are only used in money transfer transactions between domestic banks and banks in the European region. When transferring money to European banks, you need the following information:
- Full name of the beneficiary receiving the money.
- IBAN number of the beneficiary receiving the money.
- SWIFT/BIC number of the recipient bank.
IBAN number when transferring money from Philippines to Germany
When you want to transfer money to relatives and friends in Germany or Europe, you need to provide the following information:
- Name and address of the payee.
- The recipient’s IBAN number.
- SWIFT/BIC number.
Note: Swift/BIC numbers are used to double check the information is correct or not? In principle, we only need the IBAN number to know the recipient’s full information.
IBAN number when transferring money from Germany to Philippines
In case of money transfer from Germany or Europe to Philippines, you cannot use IBAN. Because, in Philippines IBAN Number is not officially used, you need to provide the following information:
The recipient’s account number at the bank.
Recipient bank SWIFT/BIC number.
Name and address of the recipient’s bank.
Note: Money transfer will cost you, you should consult and ask specifically for each case.
What does BIC/SWIFT bank code have to do with IBAN code?
To understand the relationship between BIC/SWIFT code and IBAN code you need to understand the related concepts of BIC and SWIFT:
- BIC is an acronym for Bank Identifier Code which means bank identifier.
- SWIFT in full is Society for Worldwide Interbank Financial Telecommunication.
Both BIC or SWIFT codes are international codes of banks that inherit money sent from abroad. When receiving money from abroad, you need to provide the following information:
- SWIFT/BIC code of the beneficiary bank.
- The recipient’s bank account number.
- Full name information of the payee.
The IBAN code is still relatively new to users in Philippines. Therefore, there are many questions regarding the IBAN number. Let’s find out the answer with Filipinance.com in the next section.
Why use IBAN code?
The IBAN number is a mandatory number for currency transactions in Europe. This is an identifier and is mandatory in the EU banking system. In particular, the IBAN code has significantly contributed to minimizing errors in transactions.
How do i know my IBAN code?
You can check your IBAN number yourself in different ways. Here are some suggestions to help you find out your IBAN number easily:
- View IBAN number in your statement account. Immediately after registering the IBAN code, the bank will automatically send the statement information with the IBAN number to the account holder.
- See IBAN number in the bank’s Banking app
- Look up the IBAN number at the bank’s transaction offices.
Is BIC/SWIFT code required in Europe?
In the European area, if you need to transfer and receive money from Philippines, you only need an IBAN number. You do not need a BIC/SWIFT number to make transactions. However, for other countries in the European region, you need to check with the banks of those countries whether they need to provide BIC/SWIFT numbers.
Is IBAN number retrievable in case of card loss?
When you lose your card, the first thing you need to do is immediately contact the call center or branch to lock your account. This is a necessary security to avoid the case of fraudsters losing money in the account. When you lose your card, you just need to bring your ID card to the counter to get your IBAN number back.
Wrong IBAN number what to do?
When you enter the wrong IBAN number, the transactions will not be successful. When transactions are declined, banks will get back to you. You can then provide the correct IBAN number to complete the transactions.
The IBAN number is an important banking information for the European region. Understanding what an IBAN is and what it means will give you more confidence in your international transactions. Hope this article has provided you with useful information about IBAN number.