What are IBAN and BIC? How do they work?
Before we start breaking down what an IBAN and a BIC consist of, it is important to understand what they are.
IBAN stands for International Bank Account Number. It is therefore an international standard for bank account numbering that enables the complete, consistent and unique identification of a bank account, regardless of the country or bank in which the account is held.
This system has only been in existence since 1997 and is now used in around 50 countries worldwide
BIC stands for Business Identifier Code. This is another standard that defines a universal code for identifying banking institutions. Every bank registered on the SWIFT system has a unique BIC code.
These two elements work together to ensure that financial transactions are carried out successfully, quickly, securely, reliably and in a traceable manner.
What are the naming conventions for IBAN and BIC? What elements do these two codes consist of?
The structure of an IBAN is standardised.
The length of an IBAN varies depending on the country where the bank account is held. It ranges from 14 to 34 characters. A Swiss IBAN, for example, is 21 characters long, compared with 27 for a French IBAN or 22 for a German IBAN.
The structure of an IBAN is standardised, although additional information may be included. As each IBAN specifies the country, the bank and the target account, it is therefore unique.
Depending on the country, the IBAN may include additional information. In France, for example, it is possible to identify the branch where a bank account is held.
The composition of a BIC is also standardised.
A BIC, on the other hand, is a standardised code, and this code does not vary in any way depending on the country of residence or the bank.
However, it is common for a bank to provide a BIC code without the branch code, as the latter merely indicates a geographical location and can generally be replaced by ‘XXX’ or even omitted altogether.
How do you check an IBAN?
At b-sharpe, we always check the IBAN you enter in your customer portal. There are also numerous websites where you can check or calculate the IBAN of a supplier or one of your customers.
We recommend using IBAN Calculator, for example. This website offers a comprehensive and reliable service for verifying IBANs.
Where can I find our IBANs?
Our IBANs for bank transfers are available directly in your customer portal under the ‘b-sharpe bank accounts’ section. We have put together a guide to help you find the IBANs in your customer portal.
Differences and similarities with the RIB
A bank account details statement (RIB) is a document provided by your bank that summarises all the information relating to your bank account. It usually includes not only your IBAN and BIC, but also your surname, first name, address, account number, and the name and address of the bank.
To carry out a transaction, only the IBAN, the BIC, the beneficiary’s name and their address are required. All other information is purely optional.
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