First, the banking union in Europe is taking shape with the standardization of account numbers for banking service users (BIC Code). Then, in this way, transactions are processed more quickly and securely throughout the European Union. This standardization has a significant economic impact since faster transactions mean time savings for users while maintaining an optimal level of security.Simulate your credit online
What is the BIC code?
The BIC, or Business ID Code, is the second part of banking information. It indicates who the bank is, while the IBAN indicates which account the financial institution holds your money in.
The BIC code is used worldwide to identify banks. Other international organizations use this code to recognize the bank, so it is very important that it is accurate.
What does “BIC” mean?
BIC stands for “Bank Identifier Code.” It is an international code that aims to identify the bank, whether it is located in Belgium or elsewhere in Europe or the world. It is composed of 8 characters, with the first 4 letters identifying the bank, the next 2 recognizing the country, and the last 2 the city where the banking institution is located.
How to use the BIC?
Therefore, established by the International Organization for Standardization (ISO) in January 2007, the BIC is a standardized number that facilitates cross-border and domestic banking transactions. It is often used in conjunction with the IBAN (International Bank Account Number), as the latter indicates the account number while the BIC code specifies the account holder’s bank.
When is the BIC used?
Finally, you must provide your BIC, in addition to your IBAN, when you receive a direct deposit or a bank transfer.
What characters make up a BIC?
Nevertheless, bank identification codes are composed of eight to eleven letters or numbers. Your bank’s BIC code is used in banking transactions, such as electronic transfers and direct deposits.
Do BIC codes and SWIFT codes differ?
They are the same! The BIC code is also known as SWIFT.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a cooperative that securely manages communications between banks worldwide. The SWIFT company is also responsible for the BIC codes used by financial institutions.