Understanding SWIFT Codes: Your Guide to International Bank Transfers
In today's financial markets, money transfers from institution to institution in a matter of seconds across the world. To properly identify an account without relying on bank and financial institution names (which can be very similar), a Bank Identifier Code (BIC) was established. This is often referred to as a BIC or SWIFT code and is most frequently used in international transactions. SWIFT stands for Society for Worldwide Interbank Financial Telecommunication.
SWIFT Basics
SWIFT is the company appointed by the International Organization for Standardization used in the financial industry as the primary authority for BIC assignment. This assignment identifies banks unambiguously using an eight-character string made up of three codes.
Bank Code
The bank code refers to the institution the funds are held at. It is identified using a four-letter code, usually associated with the initials of the institution, but not always.
Country Code
The International Organization for Standardization has assigned every country a two-letter code. This represents the country the financial institution resides in.
Location Code
The location code defines more specifically the state, province or time zone of the financial institution housing for the transaction. It is comprised of two characters that can be either numeric or alphabetic, or a combination.
Non-Network Institutions
Every financial institution globally has an assigned SWIFT number, regardless of its affiliation with SWIFT. Institutions not connected with the network are identified with a "1" at the end of the location code.
-
Understanding Bank Loans: Types, Terms & How They Work
Banks don't make money by taking your deposits and holding onto them until you need the cash. They make money largely through loans. A bank loan is an arrangement in which a bank gives you money t
-
Understanding Cleared Checks: What You Need to Know
What Is a Cleared Check? When you get your bank statement at the end of the month, you get a list of things that have come in and out of your account. These items include deposits, transactio
budgeting
- Understanding Bank Adjustments: What They Are & Why They Happen
- Understanding Authorization Codes in Bank Transactions: A Comprehensive Guide
- Understanding Wire Routing Numbers: Your Guide to Secure Money Transfers
- Understanding UK Sort Codes: A Comprehensive Guide
- Account Number Verification: How It Works & Why It's Important
- Understanding Routing Number Changes: What to Do When Your Bank's Routing Number Updates
- Understanding Bank Account Roll Numbers: What You Need to Know
- Understanding Bank Identification Numbers (BINs): What They Are & Why They Matter
- Understanding IBAN: Your Guide to International Bank Account Numbers
-
Understanding SWIFT Money Transfers: A Comprehensive GuideSWIFT money transfers move money from one country to another. A SWIFT money transfer is a type of international wire transfer that is an electronic means of moving money from one country to a...
-
Demand Deposit Account (DDA): Your Guide to Checking AccountsWhat Is a DDA Bank Account Of the many types of bank accounts available, one type allows you to make withdrawals at any time without having to give your bank a heads-up notice. This type of b...