IBAN vs SWIFT: Which do I Need for International Transfers?

Key Takeaways

• Learn what IBAN and SWIFT are and how they function in international money transfers.

• Understand the key differences between IBANs and SWIFT codes, including their structure and purpose.

• Discover which code you should use based on your transfer needs and the requirements of your bank.

Trying to make sense of banking codes for your international transfer? SWIFT codes and IBANs are essential for getting your money where it needs to go, but they serve completely different functions in the global banking system.

While both help your money reach its destination, understanding their distinct roles can save you time and prevent transfer delays. This article breaks down what these codes are, how they differ, and exactly which one you'll need for your specific transfer situation.

What is an IBAN?

While SWIFT codes direct your money to the right bank, an IBAN pinpoints the exact account where your funds should land. IBAN stands for International Bank Account Number and identifies the specific recipient's bank account.

How IBAN works

• It's widely used in Europe, the Middle East, and several other regions

• IBANs help reduce transfer errors and streamline processing times

• Unlike SWIFT codes that identify banks, IBANs identify individual accounts

Breaking down an IBAN

An IBAN contains up to 34 alphanumeric characters in this structure: CC XX BBBB AAAA AAAA AAAA AAAA

• CC: Country code (2 letters)

• XX: Check digits (2 numbers for error detection)

• BBBB: Bank identifier (varies by country)

• AAAA... : The recipient's unique account number

For example, AT11 2222 3333 4444 5555 6666 7777 would be a bank account in Austria.

What is a SWIFT code?

SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. These  codes act as your bank's international address, ensuring your money finds its way through the global banking network. When you send money abroad, this unique identifier helps direct your transfer to exactly the right financial institution.

How SWIFT works

• Each bank has its own unique SWIFT code (sometimes called a BIC, or Bank Identifier Code)

• The SWIFT system doesn't actually move your money  — it sends the payment instructions between banks

• These codes ensure your funds arrive at the correct bank, no matter where in the world you're sending money

Breaking down a SWIFT code

A SWIFT code contains 8-11 characters formatted like this: AAAA BB CC DDD

• AAAA – Bank code (4 letters identifying the bank)

• BB – Country code (2 letters identifying the country)

• CC – Location code (2 characters specifying the bank's city or region)

• DDD – Optional branch code (3 characters identifying the specific branch)

For example, BOFAUS3N ¹ identifies Bank of America in New York, USA.

IBAN vs. SWIFT: Key differences

Knowing when to use SWIFT codes versus IBANs can save you time and prevent transfer delays. While they both play crucial roles in international banking, they serve completely different functions in getting your money where it needs to go. 

Here's how these two banking identifiers compare:

Which code should you use for your international transfer?

So, how will you know whether you need a SWIFT code, an IBAN, or both? The answer depends on where your money is headed. Getting it right the first time helps your transfer arrive faster and avoids potential processing delays.

When to use each code

• Sending to Europe, the Middle East, or the Caribbean? You'll likely need an IBAN, and possibly a SWIFT code too

• Sending to the USA, Canada, Australia, or Asia? A SWIFT code is typically required

• Some countries require both SWIFT codes direct your money to the right bank, while the IBAN ensures it lands in the correct account

Real-world transfer scenarios

Let's break this down with some everyday examples:

• Sending money to your sister studying in Germany? You'll need her IBAN, and possibly her bank's SWIFT code too. European banks rely heavily on IBANs for accurate account identification.

• Helping your husband transfer funds to a business partner in Japan? You'll only need the recipient's SWIFT code, as Japan's banking system doesn't use IBANs.

• Supporting family in the UK? You'll need both codes - the SWIFT code routes your money to the right bank, while the IBAN ensures it reaches your family member's specific account.

• Not sure what you need? Ask your recipient to check their bank statement or contact their bank directly. They can provide exactly what's required for their country's banking system.

Ensuring transfer success

Before hitting "send" on your international transfer, take a moment to verify all codes are correct. Even a single mistaken character can send your money to the wrong destination or cause processing delays. 

You can find your own bank codes on your account statement or by logging into your online banking portal. If you're uncertain about any details, check out Xe’s IBAN calculator to lookup and verify your IBAN information.

How to find your SWIFT code or IBAN

Not sure where to locate these essential banking codes? Fortunately, banks make them readily available through several channels.

Finding your banking codes

Your SWIFT code and IBAN aren't hidden treasures - they're actually quite easy to find. Check your bank statements first, as many institutions print these details directly on your monthly summary. 

Your online banking portal typically displays these codes in the account information section. If you still can't locate them, a quick call to your bank's customer service will get you the information you need.

Avoiding common transfer mistakes

When it comes to international transfers, small errors can have big consequences. Here’s how to avoid some of the most common transfer mistakes: 

1. Check every character: Even one incorrect digit can send your money to the wrong place

2. Verify current information: Banking details can change, so confirm before each transfer

3. Know what's needed: Not all countries use IBANs, so check which codes apply to your destination

Frequently asked questions about SWIFT and IBAN

Still have some burning questions about SWIFT codes and IBANs? Here are few answers to commonly asked questions to help you send money abroad.

Do I need both a SWIFT code and an IBAN for my transfer?

This depends on where you're sending money. For European countries, you'll typically need both codes. When sending to countries like the US or Japan, you'll usually only need a SWIFT code.

How do I know which code my recipient's bank requires?

The simplest approach is to ask your recipient to check with their bank or review their account details. Most banks also list this information on their websites under international transfers.

What if I realize my bank details are incorrect?

Act quickly. Contact your bank as soon as possible to correct any errors. Most transfers can be modified or recalled if caught early enough in the process.

Are there different fees for SWIFT versus IBAN transfers?

Yes, and this can affect your costs. SWIFT transfers typically involve fees from intermediary banks along the route. IBAN transfers within Europe (especially SEPA transfers) generally have lower fees and faster processing times.

Save money with Xe on your international transfers

Ready to send money overseas? While understanding SWIFT codes and IBANs is important, choosing the right transfer provider can make an even bigger difference to your bottom line.

Xe offers smart solutions for your international transfers:

• Bank-beating exchange rates – Get more value when converting your currency

• Transparent, low fees – See exactly what you're paying without surprise charges

• Quick delivery – Many transfers arrive within minutes of being sent

• Simple process – Send money easily online or through our mobile app

Making international transfers work for you

Understanding SWIFT codes and IBANs simplifies your international money transfers, ensuring your funds reach their destination efficiently. When you're ready to send money abroad, Xe offers competitive rates and a straightforward process that helps your money go further while keeping the experience simple and stress-free.

Citations

¹ Bank of America SWIFT Code - Bank of America (2025)

**The information from these sources were taken on March 12, 2025. 

The content within this blog post is not intended for use as financial advice. This content is for informational purposes only. Different currency exchange amounts, currency types, dates, times, and other individual factors will result affect the delivery times of transactions, rates and comparative savings.