What is IBAN
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. It serves as a unique identifier when conducting international transactions, streamlining the process of transferring funds across borders. Essentially, if you’re engaging in cross-border transactions, having an IBAN is a prerequisite.
Using IBAN and BIC
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.