First, the banking union in Europe is taking shape with the standardization of account numbers for banking service users (BIC Code). As a result, transactions are processed more quickly and securely throughout the European Union. This standardization has a significant economic impact as the speed of transactions saves time for users while maintaining an optimal level of security.
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What is the BIC code?
The BIC, or Business Identifier Code, is the second part of banking information. It indicates which bank it is, while the IBAN shows which account the financial institution holds your money.
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 correct.
What does “BIC” mean?
BIC stands for “Bank Identifier Code.” It is an international code aimed at identifying the bank, whether located in Belgium or elsewhere in Europe or the world. It consists of 8 characters, with the first 4 letters identifying the bank, the next 2 identifying the country, and the last 2 identifying the city where the bank 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 together with the IBAN (International Bank Account Number) because the latter indicates the account number while the BIC 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 bank transfer.
What characters make up a BIC?
Nevertheless, Bank Identifier Codes consist of eight to eleven letters or numbers. Your bank’s BIC 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 the SWIFT code.
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.
