What are SWIFT Codes?
A SWIFT code is a standardized format utilized during international transactions between banks and financial establishments. It pinpoints the specific branch, bank, and country where an account is held and conveys this information using BIC (Bank Identifier Codes).
The acronym SWIFT represents the Society for Worldwide Interbank Financial Telecommunication. The BIC system is both owned and managed by SWIFT. This system can swiftly recognize a bank and expedite payments. Furthermore, it was through the SWIFT network that the standardization for IBAN (International Bank Account Numbers) was established.
The SWIFT network employs BIC codes to facilitate secure transactions, such as international wire transfers, global money transfers, and SEPA payments. Beyond transactions, it also serves purely as a communication system.
Interestingly, when a company engages with the SWIFT network, they aren’t directly transferring funds. Rather, it’s akin to issuing a “payment instruction” between two banking institutions.
Other names for a SWIFT code include:
- SWIFT ID
- BIC code
- ISO9362
