Payment codes simplified
A Simple Guide to International Payment Banking Codes
When sending international payments, you're likely familiar with the various banking codes needed to ensure your money reaches the intended recipient. Errors in these codes, which can be over 30 characters long, are common and can cause payments to go missing. This guide breaks down the different banking codes to help you understand them better.
SWIFT Code (BIC Code)
The SWIFT code, also known as the Bank Identifier Code (BIC), is used to identify banks globally. It consists of 8 to 11 characters and may also be referred to as CHIPS, NCC, BSC, or IFSC by other banks.
Businesses use SWIFT or BIC codes for international wire transfers and SEPA (Single Euro Payments Area) payments. These codes allow banks to exchange messages securely. Here's an example of a SWIFT/BIC code for Barclays Bank:
BUKBGB220KP
- Bank code: 4 letters
- Country code: 2 letters
- Location code: 2 digits
- Branch code: 3 digits
IBAN (International Bank Account Number)
Some banks use an IBAN to identify a customer’s bank account, especially for cross-border payments. When combined with a SWIFT or BIC code, it helps automate the transfer process.
An IBAN starts with a two-letter country code followed by a two-digit checksum, then 4 digits from the SWIFT code, and up to 35 characters for the specific bank account. Here's an example of an IBAN number in the UK:
GB22MIDL12345612345678
- Country code + IBAN Checksum
- SWIFT code: 4 digits
- Sort code
- Account number
Routing Number / ABA Routing Number
For local payments within the US, you’ll need a routing number and account number. The routing number, also known as an ABA or RTN routing number, ensures the payment reaches the correct bank. This nine-digit number includes:
623852453
- Federal Reserve Routing Symbol
- American Bankers Association (ABA) Institution Identifier
- Check digit
If you need a routing number, most US banks list them on their websites. Once you know the bank's name and location, finding the routing number online is straightforward.
CNAPS (China National Advanced Payment System)
A CNAPS code, is a 12-digit identifier used for making payments to China in Renminbi (CNY). It helps route payments efficiently within the Chinese banking system.
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