Daily Junction.mobi portalPersonal Finance · November 8, 2023 · Rachel Stone · 5 min
IBAN and SWIFT are the codes that make international bank payments work. This UK guide explains what an IBAN and a SWIFT/BIC code are, how they differ, where to find them, and what you need to send or receive money abroad.
Paying someone in the UK is simple: you need a sort code and an account number. Send money abroad, though, and those familiar numbers are no longer enough. Instead you will be asked for an IBAN and often a SWIFT code — the two identifiers that make international payments work. They sound technical, but the idea behind them is straightforward. This guide explains what each one is, how they differ, where to find them, and what to watch when money crosses borders. This is general information, not financial advice.
An IBAN (International Bank Account Number) is a standardised code that identifies an individual bank account for international payments. A SWIFT code — also called a BIC (Bank Identifier Code) — identifies the bank or branch itself.
The simplest way to remember the difference:
For many international transfers you need both: the SWIFT code routes the payment to the correct bank, and the IBAN ensures it lands in the right account. They are the cross-border equivalents of the domestic sort code and account number you would use for a standing order within the UK.
An IBAN is a single string of letters and numbers, up to 34 characters long, that packs several pieces of information into a standard format. Reading from the start, it contains:
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GB for the United Kingdom).So a UK IBAN essentially wraps your existing sort code and account number inside an internationally recognised envelope, along with a country code and a built-in error check. That check number is useful: it lets banking systems spot many mistyped IBANs before a payment is even attempted.
A SWIFT/BIC code is shorter — usually 8 or 11 characters — and identifies the financial institution rather than the account. SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication, the global network that banks use to send secure payment instructions to one another.
The characters typically break down as:
When you send an international payment, the SWIFT network carries the instruction between banks; the actual money is settled through correspondent banking relationships. The IBAN then tells the receiving bank exactly which account to credit.
| Feature | IBAN | SWIFT/BIC |
|---|---|---|
| Identifies | A specific account | A bank or branch |
| Length | Up to 34 characters | 8 or 11 characters |
| Contains a country code | Yes | Yes |
| Built-in check digits | Yes | No |
| Main job | Pinpoint the account | Route to the right bank |
In short, they are complementary rather than competing. Think of the SWIFT code as the bank's address and the IBAN as the specific account within it.
You do not need to memorise or construct these codes — your bank provides them:
If you are sending money overseas, you will need the recipient's IBAN and SWIFT/BIC, which they obtain from their own bank. Always copy these exactly — a single wrong character can misdirect or delay a payment.
Sending money abroad is more involved than a domestic transfer, and a few things are worth checking before you click send:
Because international payments can carry charges and currency costs, it is worth factoring them into your budget if you send money abroad regularly — for example, supporting family overseas or paying an international supplier.
For free, impartial guidance on payments and managing money, MoneyHelper and Citizens Advice are reliable starting points, and the Financial Conduct Authority regulates UK banks, payment firms and money-transfer providers.
Imagine paying a supplier in the eurozone €500. They give you:
Your bank uses the SWIFT code to route the instruction to their bank and the IBAN to identify the exact account, while the check digits in the IBAN help catch any typing slip. After any conversion from pounds to euros and any fees, the €500 (less charges) is credited to the supplier's account, typically within a few working days.
IBAN and SWIFT are the backbone of international payments. An IBAN identifies the specific account in a standard, error-checked format, while a SWIFT/BIC code identifies the bank. For most cross-border transfers you need both, and you can find yours in your banking app, on statements or from your bank. Within the UK, stick with your sort code and account number; once money crosses a border, reach for the IBAN and SWIFT — and always check the fees, the exchange rate and the details before you send.