What are BIC and SWIFT bank codes?
Although BIC and SWIFT codes may seem confusing, theyre essential for anyone who needs to send international payments. So, for businesses with a global presence, theyre something you may need to know about. Well explain everything you need to know about BIC and SWIFT codes, including what they are, what they look like, how to find them, and how to use them. BIC codes explained  BIC means Bank Identification Code, or Bank Identifier Code. It is an 8 to 11-character code that is used to identify a specific bank when you make an international transaction. Its almost like a postcode for your bank, ensuring that your money goes to the right place. SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication, which is a global network that processes payments between different countries. Short answer: no. The terms are used interchangeably and mean exactly the same thing  theyre simply given different names by different banks and financial organisations. Its also worth noting that these codes may be referred to as SWIFT/BIC codes, BIC/SWIFT codes, or SWIFT identifiers, but again, in practice there is no difference between any of the terms. All BIC and SWIFT codes follow the same format. They are between 8 and 11 characters long and they are arranged as follows:  AAAABBCCDD  AAAA  4-character bank code that looks like a shortened version of the banks name  BB  2-character country code telling you which country the bank is in  CC  2-character location code telling you where the banks head office is located  DDD  3-character branch code (optional) telling you where the specific branch is located  Because some banks dont use the 3-character branch code, theyll have a shorter (8-character) BIC code. For these banks, the branch code may be replaced by a triple X (i.e. MIDLGB22XXX) or left off entirely. If youre receiving an international payment, youll need to know your BIC number. You can usually find it on your bank statements, but if you dont have any to hand, you could also log into your online banking account or just call into your local branch. If youre making an international payment and need to find the BIC number of the recipient, you can simply use a BIC/SWIFT finder  such as this online tool from Bank.Codes  that allows you to search for the codes of particular branches or validate SWIFT numbers for extra security. Finally, its important to double-check with your intended recipient that the BIC code youve been given is correct before you authorize a payment. An incorrect code could mean that your payment is sent back, delayed, or even goes into the wrong account. Yes, most banks will require a fee to process international payments, so you may need to pay up to $40-50 when you use a BIC number for your payment. Its also possible that when your transfer is in transit, youll incur a handling fee from corresponding banks. As bank transfers using SWIFT numbers often go through 1-3 corresponding banks, these fees can add up. In addition, information on handling fees is often hidden in the small print, so it may be difficult to know how much youll be charged when you make the transfer. When banks send international payments, they rely on a network of correspondent banks. These correspondent banks work together to move your money from one place to another, before it finally reaches your recipient. BIC codes are used to ensure that your payment goes to the right bank. On the customer side, its a simple process. Once youve got your recipients SWIFT number and confirmed that its correct, you simply head into your local branch and ask to make an international payment. Alternatively, you can use your online banking account to make the payment. GoCardless have created the first global network for recurring payments. Collect payments in your customers currency, and settle in your own, at the real exchange rate. All with just your existing bank account. Learn more about international payments.