The term IBAN, short for International Bank Account Number, refers to a globally recognised standard for identifying bank accounts.
IBAN, or International Bank Account Number, is a standardised alphanumeric code assigned to a specific bank account. IBAN is used when a company or an individual has an international transaction. IBAN is used all over the world and helps the banks identify the transactions across borders.
When having an international transaction it is important that you also use an Bank Identifier Code (BIC) or SWIFT code. While IBAN is your international bank account number, BIC and SWIFT will provide information about the transfer and where it is from.
Using IBAN and BIC
In the realm of international transactions, both the IBAN and the Bank Identifier Code (BIC) or SWIFT code are commonly required. BIC (Bank Identifier Code) or SWIFT code is used to identify a specific bank in global transfers, the IBAN is exclusively employed for bank transfers. It’s essential to recognize that the BIC (or SWIFT) code has a broader application and is necessary in international financial dealings.
Finding IBAN
You can find your IBAN number in your bank information.
When making payments to an IBAN, there is flexibility in transferring funds either in the recipient’s currency or converting them to Australian dollars. This flexibility is particularly useful when dealing with invoices received in foreign currencies like EURO. However, when opting to pay in Australian dollars, it’s crucial to consider potential currency differences.