SWIFT Code vs IBAN — Key Differences & When You Need Each

SWIFT Code vs IBAN: Quick Summary

SWIFT codes and IBANs are both used in international banking, but they serve different purposes. A SWIFT code identifies a specific bank, while an IBAN identifies a specific bank account. Here's a quick comparison:

What Is a SWIFT Code?

A SWIFT code (also called a BIC — Bank Identifier Code) is an 8 or 11-character alphanumeric code that uniquely identifies a bank or financial institution worldwide. It's the address system that tells the international banking network which bank to route your money to.

SWIFT code structure:

DEUTDEFF500
│││││││││││
DEUT ── Bank code (Deutsche Bank)
DE ──── Country code (Germany)
FF ──── Location code (Frankfurt)
500 ─── Branch code (optional, specific branch)

Key facts about SWIFT codes:

• Managed by SWIFT — the Society for Worldwide Interbank Financial Telecommunication, headquartered in Belgium

• 11,000+ member institutions in over 200 countries and territories

• Required for international wire transfers — without a SWIFT code, banks can't route your payment to the correct institution

• 8-character codes identify the bank's headquarters; 11-character codes identify a specific branch

Generate valid SWIFT codes for testing with Qodex's free SWIFT Code Generator.

What Is an IBAN?

An IBAN (International Bank Account Number) is a standardized international numbering system that identifies a specific bank account for cross-border transactions. While a SWIFT code tells the network which bank, the IBAN tells it which account at that bank.

IBAN structure (German example):

DE89 3704 0044 0532 0130 00
││   ││││ ││││ ││││ ││││ ││
DE ─ Country code (Germany)
89 ─ Check digits (validates the entire IBAN)
3704 0044 ── Bank identifier (sort code)
0532 0130 00 ── Account number

Key facts about IBANs:

• ISO 13616 standard — maintained by the International Organization for Standardization

• Used in 80+ countries — primarily Europe, Middle East, North Africa, and the Caribbean

• Variable length — from 15 characters (Norway) to 34 characters (Saint Lucia), depending on the country

• Built-in validation — check digits (positions 3-4) allow automatic verification that the IBAN is valid before sending a payment

• Not used in the US — American banks use routing numbers instead of IBANs

Generate valid IBANs for testing with Qodex's free IBAN Generator.

Key Differences Between SWIFT Code and IBAN

1. What They Identify

A SWIFT code identifies a bank or financial institution. An IBAN identifies a specific bank account. For an international transfer, you typically need both: the SWIFT code to route the payment to the right bank, and the IBAN to deposit it into the right account.

2. Format and Length

SWIFT codes are always 8 or 11 characters. IBANs vary by country from 15 to 34 characters. SWIFT codes follow a fixed structure (4-letter bank code + 2-letter country + 2-character location + optional 3-character branch). IBANs start with a 2-letter country code and 2 check digits, followed by the country-specific bank and account identifier.

3. Geographic Coverage

SWIFT codes are truly global — used by 11,000+ institutions in 200+ countries. IBANs are used in about 80 countries, concentrated in Europe and the Middle East. The US, Canada, Australia, and many Asian countries don't use IBANs, relying on domestic account numbering systems instead.

4. Validation

IBANs include built-in check digits that allow mathematical validation before a payment is sent — catching typos and errors upfront. SWIFT codes have no built-in validation mechanism; errors are caught during the routing process, which can cause delays and fees.

5. When You Need Each

For an international wire transfer to Europe, you'll need both — the SWIFT code (to identify the bank) and the IBAN (to identify the account). For transfers within the Single Euro Payments Area (SEPA), an IBAN alone is often sufficient since the bank identifier is embedded within the IBAN itself.

When to Use a SWIFT Code

You need a SWIFT code when:

• Sending international wire transfers — the SWIFT code routes your payment to the correct bank

• Receiving international payments — your bank's SWIFT code tells the sender's bank where to send the money

• Transferring to countries without IBANs — the US, Canada, Australia, and many others require SWIFT codes plus domestic account details

• Interbank communication — SWIFT codes are used for secure messaging between banks, not just payments

When to Use an IBAN

You need an IBAN when:

• Sending money to Europe — IBANs are mandatory for all EU/EEA transfers

• SEPA payments — within the Single Euro Payments Area, an IBAN is the primary account identifier

• Transferring to IBAN-adopting countries — 80+ countries in Europe, Middle East, and parts of Africa and the Caribbean

• Validating account details — IBANs can be validated before sending, reducing failed transfers

For transfers to the US, you'll use a routing number instead of an IBAN.

Frequently Asked Questions

Do I need both a SWIFT code and an IBAN for international transfers?

Usually yes. For most international wire transfers, you need the recipient's SWIFT code (to identify their bank) and their IBAN (to identify their specific account). The exception is SEPA transfers within Europe, where an IBAN alone is often sufficient because the bank identifier is embedded within it. For transfers to countries that don't use IBANs (like the US), you'll need the SWIFT code plus the domestic account number and routing number.

Does the US use IBANs?

No. The United States has not adopted the IBAN system. US banks use ABA routing numbers (9-digit codes) to identify the bank and standard account numbers to identify the account. For international transfers to the US, senders use the recipient bank's SWIFT code combined with the routing number and account number. Some US banks that handle significant international business are familiar with IBANs but don't issue them.

Can I find a SWIFT code from an IBAN?

In many cases, yes — partially. The IBAN contains the bank identifier (sort code or bank code), which can be used to look up the corresponding SWIFT code. However, the relationship isn't always one-to-one since large banks may have multiple SWIFT codes for different branches or departments. The safest approach is to ask the recipient for both their IBAN and SWIFT code directly.

What happens if I use the wrong SWIFT code or IBAN?

Using an incorrect SWIFT code can route your payment to the wrong bank entirely, causing delays of days or weeks while the banks trace and return the funds. An incorrect IBAN will usually be caught by the check digit validation before the payment is sent, which is one of IBAN's advantages. However, if the IBAN is wrong but passes validation (unlikely but possible), the payment could be credited to the wrong account.

How long is a SWIFT code vs an IBAN?

SWIFT codes are always 8 or 11 characters (8 for headquarters, 11 for a specific branch). IBANs vary by country — from 15 characters (Norway) to 34 characters (Saint Lucia). For example, UK IBANs are 22 characters, German IBANs are 22 characters, and French IBANs are 27 characters. The variable length reflects different countries' domestic account numbering systems.

Are SWIFT codes and BIC codes the same thing?

Yes. SWIFT code and BIC (Bank Identifier Code) refer to the same thing — the 8 or 11-character code that identifies a bank in the international banking network. "SWIFT code" is the more common term in everyday banking, while "BIC" is the formal ISO 9362 standard name. You may also see "SWIFT/BIC" used together on bank forms and transfer instructions.