When it comes to making an international online payment, you will be required to provide a BIC code. It can often leave one confused as to what the Bic Codes refer to. These are the same as SWIFT codes. It is an international banking code for transfer of financial messages. The code is also used for identifying banks all across the world. BIC stands for Bank Identifier Code and SWIFT refers to the Society for Worldwide Interbank Financial Telecommunication.
BIC has long been used to refer to Bank Identifier Code, but more recently it has been also referred to as Business Identifier Code. This has been done because of the growing scope of this special code in identifying businesses too. Whichever way it is used or referred to, BIC is managed by the International Organization for Standardization. It has been defined under the ISO9362 standard which is internationally accepted and recognized.
Initially, the code was created for identifying an address over the SWIFT network. But with the name change, it covers a wider scope of financial transactions.
During financial transactions, the BIC codes are used for identifying a particular business, which is mostly a bank. In many countries the bank-identifying code of the BIC is part of the International Bank Account Number or IBAN. It identifies the institution to which the payment has to be made. This part is usually the short form used for the name of the bank.
Some of the most important uses of BIC Codes are as following:
There are 2 formats of BIC Codes. The 11-character code is the full BIC. The other format has 8 characters. It is also referred to as Business Party Identifier. When the 8-digit format is involved, it is assumed that the reference is made to the main office.
SWIFT Standards is a part of the Society for Worldwide Interbank Financial Telecommunication (SWIFT). It will handle the listing of the BIC codes. The codes were initially referred to as SWIFT codes or addresses. They are mostly known by this name even though they may now have been standardized as Business Identifier Codes.
It was in 2009 that the scope of the codes was widened to include even institutions which don't have financial profiles. This was when Bank Identifier Code was changed to Business Identifier Code. There are more than 7,000 live codes worldwide which stand for the partners who are linked to the SWIFT network. Besides, there is an additional 10,000 BIC codes used for carrying out manual transactions.
Swift Code or the Society for Worldwide Interbank Financial Telecommunication code is a globally accepted identification system for banks. These codes are mostly used for carrying out international wire transfers and can have 8/11 alphanumeric characters. It was first authorized to be created by the International Organization of Standardization (IOS).Read More
The IFSC Code or the Indian Financial System Code is an 11 character code that is used by the Reserve Bank of India for identifying all the bank branches which are part of the NEFT system in India. It is used for the electronic payment system applications like the NEFT (National Electronic Fund Transfer, RTGS and CFMS.Read More
MICR Code or Magnetic Ink Character Recognition is a character recognition system used mostly by the banking industry for facilitating the processing of cheques. These characters are printed in special unique typefaces with magnetic ink. Iron oxide is the commonly used material and it requires a specially designed machine for reading these characters. These characters are mostly printed on the bottom of the cheque leaf. The code is required by the Reserve Bank of India (RBI) for identifying the bank and branch and clearing the cheque.Read More
When it comes to making an international online payment, you will be required to provide a BIC code. It can often leave one confused as to what the Bic Codes refer to. These are the same as SWIFT codes. It is an international banking code for transfer of financial messages. The code is also used for identifying banks all across the world. BIC stands for Bank Identifier Code and SWIFT refers to the Society for Worldwide Interbank Financial Telecommunication.Read More
The BSB Codes or Bank State Branch codes are 6-digit codes used for identifying banks and branches in Australia. If you want to transfer payments within Australia, you will need the account number and the BSB code of the recipient. Similarly, you will have to provide your own account number and BSB to the sender. As already mentioned, there are 6 digits in this code. The first 2 or 3 digits are used as bank identifier. This part of the code is used to process both electronic and paper-based transactions. However, it is not used in the case of payment card numbering.Read More
Sort Codes are numbers assigned to bank branches and they are used mostly for the internal purposes of the bank. These codes will have 6 digits which are separated in sets of two's with hyphens. They are most widely used in the banking systems of the United Kingdom and Ireland.Read More
Routing Numbers, also known as ABA Numbers or Routing Transfer Numbers are 9 digit numbers used by the banking system in the United States for identifying banks and financial institutions. This number system is used by the US banks for carrying out Automatic Clearing House and wire transfers. This includes various forms of transactions like direct deposits, electronic funds transfers, e-checks, tax payments, and direct payment against bills and much more.Read More