Last Updated on May 16th, 2024
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A Guide to BIC/SWIFT Codes & International Payments
Author, Mike Smith
Last Updated on June 1st, 2024
Understanding the terminology of international money transfers can often feel like trying to understand a foreign language.
Two of the most important banking terms, BIC and SWIFT codes are crucial in ensuring your money is transferred securely and accurately when making an international transfer.
In this article, we will explain what they are and why it is so important that they are used correctly to ensure your financial transfers are simple and seamless.
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What are BIC/SWIFT codes?
BIC stands for Bank Identifier Code, while SWIFT refers to the Society for Worldwide Interbank Financial Telecommunication, which assigns these codes.
A helpful way to understand BIC/SWIFT codes is to see them as the ‘postal codes’ of the banking world.
Just as a postal code helps your post arrive at the right address, BIC/SWIFT codes ensure your money reaches the correct bank across the globe.
I always think of them as a way of giving your money the exact GPS coordinates so it doesn’t end up on the other side of the planet!
Is a BIC the same as a SWIFT code?
The simple answer is yes, a BIC (Bank Identifier Code) is the same as a SWIFT code.
Whether you call it a BIC or a SWIFT code, it’s used to make sure your money goes to the right place without any mix-ups.
When you’re transferring money internationally and you’re asked for a BIC or SWIFT code, just know that you are being asked for the unique code that identifies the bank you’re sending money to, simple!
Imagine BIC and SWIFT codes as unique identifiers for banks, in the same way your name identifies you.
These codes are used when sending money internationally, acting as a guide to ensure your funds reach the correct bank safely.
Though they might seem like two completely different things, BIC and SWIFT codes are used in the same way.
Alex McKenna, a senior trader explains in a little more detail how BIC and SWIFT codes are used:
“In my experience, BIC/SWIFT codes generally used for EUR transfers are not mandatory, we can use them for our payments, but if a client has only the IBAN (International Bank Account Number) this will be sufficient to make sure a transfer arrives within Europe.
BIC/SWIFT codes are generally more important for USD, AUD, CAD, and NZD transfers.
When sending to the US and Canada we can send funds with account number and routing number, but, I like to ensure customers have their BIC/SWIFT code also for the transfer.”
Why do we need BIC/SWIFT codes in international banking?
If you are not used to making international transfers, you may well wonder, why these codes matter.
BIC/SWIFT codes are crucial for a few key reasons in the world of international banking and finance:
Security
They help ensure that your money reaches the correct bank and account.
By using these unique identifiers, banks can verify the destination before processing your transaction, reducing the risk of fraud.
Efficiency
With millions of transactions happening around the globe daily, BIC/SWIFT codes help streamline the process, making it faster and more reliable.
The codes help to avoid delays by guiding your money directly to its intended destination without any confusion.
Accuracy
These codes help to eliminate errors in international money transfers.
By specifying the exact bank branch where an account is held, they help prevent transactions from being sent to the wrong place, which can be costly and time-consuming to reverse!
Global Standard
They are internationally recognised, which means no matter where you are in the world banks understand and use these codes.
The BIC/SWIFT universal system simplifies the process of sending money abroad, making global transactions much smoother and easing any worries you may have about your money reaching the right recipient!
So, how do you find the correct BIC/SWIFT code for your international transaction? Begin by asking your intended recipient for their bank’s code directly. For an added layer of security, use official bank websites or contact the bank to confirm. Owen Wiles, a senior trader, at Key Currency, gave an insider’s trick… By using an IBAN calculator/validator and entering your IBAN, you will be provided with your BIC/SWIFT code. He does this for all of his clients, it is a simple and secure way to ensure absolute accuracy.How do I find my BIC/SWIFT codes?
Do banks have multiple BIC/SWIFT codes?
A common misconception is that all banks have a single, universal BIC/SWIFT code.
However, large banks with multiple branches may have different codes for each location, adding a layer of potential complexity to your international money transactions.
The consequences of using an incorrect code range from delays in processing to the return of funds, or worse, the funds being accepted by the wrong bank entirely… disaster!
The head of our Corporate international transfers, Rhys McCarthy, told me about an experience he had recently:
“I had a customer who provided me with the wrong BIC code for a completely different bank and country.
If we were not proactive with both myself checking this with the client and the banking team at Key Currency being diligent, the money would have been lost in the banking system for potentially months.
We spotted the error, spoke to the client and they were able to send over the right BIC code.
As a result, the money landed in their account that same day.”
To avoid any potential problems, always double-check the BIC/SWIFT code with your recipient and use a reliable transfer service, such as an independent currency broker to verify it.
Two pairs of eyes are always better than one!
Common BIC/SWIFT code questions (that customers ask our team!)
To break things down a little more, I asked our team to tell me the most common questions that they are asked by customers about BIC/SWIFT codes.
Can I use the same BIC/SWIFT code for all transactions to the same bank?
This all depends on the branch you are using and the type of transaction. We always double-check the information provided by customers to make sure all is correct for the right international money transfer.
What happens if I use the wrong BIC/SWIFT code?
Your transfer may be delayed, returned, or, in rare cases, credited to the wrong account.
Always ask your transfer service to double-check the code before proceeding.
What does a BIC/SWIFT code look like?
BIC/SWIFT codes are composed of 8 to 11 characters, each segment revealing crucial information about the destination bank, including its name, country, location, and branch.
To give an example, a Natwest BIC code will look like this:
NWBKGB2Lxxx
The BIC code above for Natwest Bank can be broken down to reveal specific information about the location and identity of the bank:
NWBK – these first four characters are the bank code, identifying the bank itself.
GB – the next two characters represent the country code, indicating the country where the bank is located, which is GB for Great Britain.
2L – Following the country code, these two characters are the location or city code, giving a more precise location of where the bank’s head office is situated.
XXX – The last 3 characters, known as the branch code, specify the bank’s branch. ‘XXX’ is a placeholder used when the code is used for the bank’s head office or when the branch isn’t specified.
At Key Currency, we’re more than just a currency exchange service, we’re your navigators in the complex world of international finance. Understanding the intricacies of BIC/SWIFT codes can be daunting, which is why we’re here to help. However, despite our best efforts, issues can arise. Perhaps you’ve entered a code correctly but the transfer is delayed or you’re unsure if a particular code matches your recipient’s bank. That’s where Key Currency shines. Our team offers personalised support, guiding you through any BIC/SWIFT code challenges, and ensuring your peace of mind throughout the transaction process. At Key Currency, we aim to guide you through the intricacies of successful foreign money transfers, with expert advice and support from start to finish. With proper knowledge and Key Currency as your ally, you can confidently tackle the details of BIC/SWIFT codes. We are dedicated to clear communication, professional insight, and tailored assistance, this guarantees that your funds are transferred safely and without unnecessary delays. In the confusing world of international money transfers, we are here to ensure your journey is straightforward and your assets are protected. With full FCA regulation and an excellent TrustPilot rating – your money is in the safest hands possible! If you’re looking to send money internationally, compare our great rates today and get a quote below.Simplifying Your International Transfers with Key Currency
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A Guide to Routing Numbers and International Transfers
Author, Mike Smith
Last Updated on May 6th, 2024
As money transfer specialists, we have helped thousands of customers transfer money to and from the USA.
One big question people have about US international transfers is routing numbers.
Specifically, what they are, why they’re needed, and how to find their own.
In this article, we’ll go through everything you need to know about routing numbers. To stop any future confusion!
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What is a Routing Number?
Let’s start at the very beginning.
Firstly, there are different abbreviations you might see used for routing numbers.
These include BRN (Bank Routing Number), RTN (Routing Transit Number), ABA routing number (American Bankers Association) or, ACH routing number (Automated Clearing House).
If you see any of these above used, they will be referring to a routing number.
But, what exactly is a routing number?
A routing number is a nine-digit code that American banks and financial institutions use for identification. It tells banks, or money transfer services, where to send your money, and do so correctly.
Routing numbers are an essential part of the American banking system.
They are used consistently for domestic and international transactions, helping them to be efficient and secure.
The United States is the only country to use routing numbers.
If you want to send money to the USA, you must know the recipient’s routing number for a smooth, error-free transfer.
How Do Routing Numbers Work for International Transfers?
A routing number helps the identification and verification of a recipient’s US bank and account.
The routing number should help confirm the pair match up.
For an international money transfer, the routing number would go through the following steps:
Where Can I Find a Routing Number?
You can find your routing number on bank statements, at the bottom of a cheque or by logging into your online banking and going to your account details.
It is worth noting, that routing numbers are used to identify local banks.
In UK terms, think of a routing number like a sort code.
So, your bank account number (specific to your account) and routing number (specific to your bank) are entirely different.
A routing number for a bank will be used by all who have an account with that particular bank in the US.
With that in mind, you could also ring your local banking branch and get the correct routing number from customer services.
For those sending money to the USA, if you know where your recipient lives and who they bank with, there are various bank code websites that you can look through to find the right routing number.
For an International Transfer, Do I Only Need the Routing Number?
In short, no.
As we’ve seen from the above, it will only identify the correct bank of the recipient.
A routing number isn’t the only piece of information needed to complete an international money transfer to a US bank account. You will also need to provide:
- Recipient’s Name
- Account Name
- Routing Number
- Bank Account Number
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Wrong Routing Number? What Can Happen…
As with all international money transfers, having the right details is so important.
The same can be aid when providing a routing number.
Giving your bank or transfer service the wrong routing number can lead to:
It’s always vital to double-check, then check again, all the information you need!
Unlike most online money transfer services and banks, the team at Key Currency will do everything possible to make sure the information you give is right.
Tom, Head of Trading at Key Currency, talks through the process:
“To check the banking details that customers provide are correct, we will call them and verbally confirm the details we have on the phone, checking that they match with what they have sent over.
What sets us apart from other providers is that we will go the extra mile to support our customers.”
It can be frustrating when an international transfer has any sort of issues.
But, everyone is human and typos happen!
That’s why Key Currency always makes this final check of information. Before continuing the transfer process.
Get Better Value for Your Money Transfers to the USA with Key Currency
At Key Currency, we provide an international money transfer service that helps people avoid paying high fees with their bank.
You’ll have real people to talk to who are experienced and experts in foreign currency exchange.
Their job is to find the best exchange rates available and make the transfer smooth and stress-free while saving you money.
We charge no transfer fees for sending money to the or from the USA.
All customer money is kept in safeguarded accounts.
As an FCA-authorised company, we comply with their regulations, ensuring complete security.
Don’t just take our word for it. Read some of our ‘Excellent’ Trustpilot reviews.
If you’re looking to transfer money to the USA, or want further help and advice with routing numbers, then please get in touch with our team today!
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