What is an IBAN number in banking?

An IBAN number is a unique identifier for your bank account which, together with your BIC, is required for international transactions. On this page, we answer everything you need to know about IBANs, including examples of IBAN numbers, IBAN validation methods, and when you might need to use an IBAN account number.

An IBAN, short for “International Bank Account Number”, is a globally-recognised code that identifies individual bank accounts worldwide. It consists of up to 34 letters and numbers, with each country having its own specific length. An IBAN number in Ireland, for example, is typically 22 characters long.

So, what is an IBAN used for? You would use an IBAN if you were making or receiving international payments to your Irish account. The unique IBAN number helps overseas banks accurately identify your account, ensuring that payments reach the correct recipient. This process is particularly important for SEPA transactions, where the IBAN is the only accepted identifier for account transfers within participating European countries.

An IBAN does not replace the typical sort code and account number combination that you’re probably used to when making payments within Ireland. Instead, it’s a code that provides extra information so that banks outside Ireland recognise your account. It’s also important to note that while IBAN numbers are used for money transfers, they cannot be used for withdrawing cash.

An IBAN number follows a specific structure that helps identify bank accounts internationally. Here is an example of an IBAN number in Ireland:

Here’s what each of these elements mean:

• Country code: The first two letters indicate the country where the account is held, such as ‘IE’ for Ireland, or ‘DE’ for Germany.

• Check digits: The next two numbers serve as a security check to ensure the accuracy of the IBAN. These digits help detect errors like missing or transposed numbers.

• Basic Bank Account Number (BBAN): The remaining characters include specific domestic bank details like the bank account number, branch identifier, and routing information.

  • Bank code: In Ireland, this is made up of four characters for the bank code of your bank. For instance, Bank of Ireland’s bank code is ‘BOFI’.

  • Branch code (national sort code): The following six digits specify the branch of your bank where your account is held.

  • Bank account number: The final eight digits represent the specific account number within the branch.

While these individual elements may have different names in other countries, the overall IBAN account number format is basically the same. This structure ensures that each IBAN number is unique.

An IBAN, as we’ve seen, uniquely identifies individual bank accounts worldwide, including the country of business. It is mainly used for ensuring payments are correctly routed to the right account internationally.

On the other hand, a SWIFT code, often referred to as a BIC (Bank Identifier Code), specifically identifies the bank or financial institution. The BIC/SWIFT code is typically 8 or 11 characters long and identifies the bank’s name, country, and sometimes its branch. For example, the Bank of Ireland’s BIC is BOFI - IE - 2D.

These codes - IBAN and BIC/SWIFT - are often used together to provide a complete set of information for international payments. While the IBAN directs payments to the right account, the BIC/SWIFT code ensures they reach the correct bank. Together, they are designed to provide an extra level of accuracy and safety when making international transactions.

If you’re finding all these abbreviations confusing, you can refer to our complete guide to bank statement abbreviations.

The IBAN system was primarily created as a quick and safe way to carry out international money transfers, but IBAN numbers are also used for domestic transactions in some countries, including Ireland. 

In addition to your account number and sort code, IBANs provide detailed information about your bank, its location, and specific account details. This coded information enhances security and significantly reduces errors, payment rejections, and delays, especially for transfers involving different countries within Europe and beyond. 

Using IBANs ensures that payments are processed smoothly and accurately, whether you’re paying bills locally or sending money abroad.

IBAN numbers are commonly used for international money transfers within the Eurozone and nearby regions like Turkey, Israel, and Switzerland. If you’re from countries like the United Kingdom, Canada, Australia, New Zealand, or China, you might not be familiar with IBANs, as these countries don’t typically use them. 

Currently, over 70 countries use IBANs. If you’re sending money to a country that uses IBANs, you’ll need the correct IBAN account number to ensure your payment reaches the right destination. For other countries, you might need to use the recipient’s account number, routing number, or SWIFT code.

You can usually find your IBAN number by logging into your online banking platform. You can typically also find the IBAN at the top of your bank statement.

Some debit cards in certain countries display IBANs directly, but this isn’t a standard practice. If you still can’t find your IBAN number, you can try contacting your bank to request the details.

Because of its length, inputting an IBAN can be prone to error. Validating an IBAN number ensures that it is correct and ready for use. Here are some steps to consider:

1. How many digits in the IBAN: Each country has a specific IBAN length. For example, Ireland’s IBAN is typically 22 characters long. If it’s shorter or longer, it may be incorrect.

2. Use an IBAN checker: You can use online IBAN checkers to easily verify if your IBAN (or your recipient’s) is valid. These tools cross-check the format of an IBAN against international standards.

3. Bank calculators: Some banks, like the Bank of Ireland, offer IBAN calculators that use your account number and sort code to generate the correct IBAN. Alternatively, there is a generic IBAN calculator available, which you can use to calculate an IBAN in multiple different countries.

By carefully following these methods, you can confirm your IBAN number is correct. It’s worth keeping in mind that, while these steps can minimise errors, there’s no guarantee they will be completely reliable. It can help to double-check your IBAN using sources like bank statements or contacting your bank or the recipient directly, if needed.

Sharing your IBAN number is typically safe for financial transactions because it only serves as an identifier, not as a way to withdraw funds. Plus, the fact that Eurozone regulators endorse IBANs for secure cross-border payments speaks to their security and reliability.

When you share your IBAN, others can send money to your account but cannot access or withdraw funds without additional sensitive details like your PIN or online banking passwords. It’s a bit like sharing your address for deliveries; post can be sent to your address - or money to your account - but access to your account requires additional security measures, like keys to a home.

SEPA, short for “Single Euro Payments Area”, is a payment scheme for making transactions across European countries, treating them like local payments. To make a SEPA payment, you use the IBAN number, and sometimes the BIC code, to make sure that the funds reach their intended recipients accurately. SEPA is used in 27 European states, plus countries like Iceland, Norway, and the UK.

While not purely for international payments, SEPA payments use IBAN numbers to offer extra security. Transfers are typically received within one working day, offering a cost-effective method for sending money to another country within the SEPA zone. 

Examples of IBAN used in a SEPA payment include things like receiving a salary from a European employer while living in Ireland, or conducting business across borders. Whether making occasional transfers to family abroad or setting up recurring direct debits like bill payments, you’ve probably made a SEPA payment using an IBAN at some point.

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