In one of our previous articles, we already briefly discussed the necessity of an IBAN and how to obtain one. Today, we will cover this topic in more detail. In this article, we will explain how IBANs work and the differences between an IBAN and a SWIFT code.
An IBAN or International Bank Account Number is an internationally recognized bank account number that can be used for transactions between different countries. Usually, an IBAN is used by banks that provide transactions including e-payments on an international level. Nowadays, an e-wallet or e-account with an IBAN can be opened in more than 70 countries. If you open an account or issue a prepaid or credit card, including virtual ones in EU countries, you will receive an IBAN for it. However, many countries including the US, China and Japan do not use the IBAN system for personal or business accounts. The IBAN is structured and its format of up to 34 letters and numbers has been agreed upon internationally. The characters that make up an IBAN for an e-wallet or e-account are broken down as follows:
As an example, if you open an IBAN account online in the UK, your International Bank Account Number may look something like this: GB33GEKV54846195463. You can find other examples of IBANs for different countries on this page.
Suppose you are planning to use your prepaid card with an IBAN to pay for services to a foreign company with a dedicated Euro IBAN account. Making the international payment using an IBAN is a fairly simple process that consists of several steps:
Both IBAN and SWIFT (or BIC) are banking standards that are internationally recognized. Before issuing a free virtual card you may still be confused by the differences between these abbreviations. Here are a few points that distinguish them:
We hope that you now have all the essential information you need to know about IBAN. At PurePay, we also provide payment services for business accounts with International Bank Account Numbers. If you are planning to open one, our team is always on hand to provide you with the best services for your business. If you have any questions, please don’t hesitate to ask us for assistance.