SWIFT, or SWIFT code, is a number that’s used to identify banks. It’s used when you make payments across borders.
You can think of a SWIFT code as your bank’s address. It’s short for society of worldwide interbanking financial telecommunications, but is usually only referred to by its acronym. It can also be called bank identifier code (BIC).
When do you use SWIFT?
If you’re invoicing a client in another country and they’re paying you via bank transfer, you have to include a SWIFT code on the invoice so that they can pay you. You can get the code by contacting your bank or by looking on their website.
There are also many free services online where you can either get your bank’s SWIFT code, doublecheck a code you use to get paid, or check a code that you’ve received.
Similarly, if you receive an invoice from a supplier abroad, and you’re paying via bank transfer, you have to use the SWIFT code on the invoice. If they haven’t included a code, you should request it.
Banks in different countries have varying solutions for international payments, but in general, you enter this information:
- The receiver’s name, account name, and address
- The name and address of the bank
- The SWIFT/BIC code
Additionally information could be required, so make sure to check what applies to you.
How the code is structured
The SWIFT code is composed of either eight to eleven characters, and the first six characters are always letters. This is what the characters mean:
- The first four letters are unique to the bank. It’s usually a shortened version of the name of the bank.
- The next two letters indicate the country the bank belongs to, for example, US for the United States
- The two characters after that indicate the geographical location of the bank, and can be either letters or numbers
- The last three characters are optional and represent the branch code or office code, they can be letters and/or numbers