What is an IBAN?
What is an IBAN account
An IBAN account number is an international bank account number. Its English name is: The International Bank Account Number, referred to as the IBAN account number.
This account number is a bank account number formulated by the European Banking Standards Committee in accordance with their own standards.
For customers from countries in the euro zone, one of the accounts opened in banks in the euro zone is an IBAN account. Of course, there are also ordinary accounts.
What is the use of IBAN account
If the remitter fills in the IBAN account number when remitting money to the euro zone, the SWIFT system will automatically process the business.
Because the IBAN account has obvious identifications such as country and beneficiary bank, no manual intervention is required in the middle, so the remittance speed is fast.
But when you remit money to the euro zone but fill in the ordinary account number, the SWIFT system will be slow to recognize the business.
Manual participation is required to confirm which country and which bank in the euro zone the remittance is from. The adverse effect is that the remittance speed is slow, and the labor cost may be deducted, which is high in cost.
Difference between IBAN account number and bank account number
As can be seen from the above points, the IBAN account is a type of bank account. However, the IBAN account is a collection account dedicated to countries in the euro zone.
This is because the Eurozone is composed of multiple countries, and the SWIFT system can quickly identify the country where the payee is located through the special structure of the IBAN account to improve efficiency.
Rather than the euro area, the country is clearly defined and no further distinction is required. Therefore, in other countries and regions, there are no IBAN accounts, only ordinary accounts.
Suggestions
When you send money to the euro area, you need to remember to ask the other party to provide the IBAN account number, not the ordinary receiving account number. If you send money to the non-euro area, just fill in the ordinary account number.
An IBAN account number is an international bank account number. Its English name is: The International Bank Account Number, referred to as the IBAN account number.
This account number is a bank account number formulated by the European Banking Standards Committee in accordance with their own standards.
For customers from countries in the euro zone, one of the accounts opened in banks in the euro zone is an IBAN account. Of course, there are also ordinary accounts.
What is the use of IBAN account
If the remitter fills in the IBAN account number when remitting money to the euro zone, the SWIFT system will automatically process the business.
Because the IBAN account has obvious identifications such as country and beneficiary bank, no manual intervention is required in the middle, so the remittance speed is fast.
But when you remit money to the euro zone but fill in the ordinary account number, the SWIFT system will be slow to recognize the business.
Manual participation is required to confirm which country and which bank in the euro zone the remittance is from. The adverse effect is that the remittance speed is slow, and the labor cost may be deducted, which is high in cost.
Difference between IBAN account number and bank account number
As can be seen from the above points, the IBAN account is a type of bank account. However, the IBAN account is a collection account dedicated to countries in the euro zone.
This is because the Eurozone is composed of multiple countries, and the SWIFT system can quickly identify the country where the payee is located through the special structure of the IBAN account to improve efficiency.
Rather than the euro area, the country is clearly defined and no further distinction is required. Therefore, in other countries and regions, there are no IBAN accounts, only ordinary accounts.
Suggestions
When you send money to the euro area, you need to remember to ask the other party to provide the IBAN account number, not the ordinary receiving account number. If you send money to the non-euro area, just fill in the ordinary account number.
Updated on: 04/05/2023
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