Are you considering transferring funds between bank accounts? Regardless of the purpose of your transfer, financial institutions may ask you for a SWIFT or BIC code.

In this article, we'll cover everything you need to know about SWIFT and BIC codes, including how they work, uses, benefits, and common questions.

What are SWIFT and BIC codes?

The The Society for Worldwide Interbank Financial Telecommunication , also known as SWIFT, is a messaging system used by financial institutions and other organizations that transfer money between accounts. The SWIFT system was created in 1973 to standardize and secure international payments.

The SWIFT network helps financial institutions communicate securely with each other to transfer funds between accounts. SWIFT does not actually hold funds or manage accounts. Instead, they serve as an intermediary, helping the two endpoints communicate with each other to move money.

The company identification code , known as BIC, is the code transmitted via SWIFT. BICs are an identification sequence composed of 8 to 11 characters. The acronyms SWIFT and BIC are used interchangeably to describe the system and the codes used by the institutions.

How are SWIFT and BIC codes used?

SWIFT and BIC are widely used in international transactions, with over 200 countries and 11,000 institutions adopting this identification tactic. During a transaction abroad, a BIC will be sent via the SWIFT system, allowing to verify the legitimacy of the bank, the country of origin and the location of the branch.

BICs can be composed of both letters and numbers and are unique to each business or institution. There are two main types of BICs: BIC8, which has 8 characters, and BIC11, which has 11 characters. Here is the general structure of BICs:

• The first 4 letters describe the bank code.
• The next 2 letters represent the country code of your bank.
• The next 2 characters are your bank's location code.
• The 3 optional characters are a subsidiary code.

This information helps recipient institutions verify the legitimacy of the transaction and ensure that the funds are deposited or withdrawn from the correct account.

What are the advantages of SWIFT and BIC codes?

SWIFT and BICs have benefits for all parties involved. Here are some of the specific benefits of using SWIFT and BICs:

Security — International transactions are prime targets for fraud. SWIFT and BIC deter this threat by providing detailed transaction information.

Mistakes — Providing secure, standardized instructions helps eliminate errors in the process, such as transferring money to the wrong account.

Speed — Thanks to BIC processing, the SWIFT system can quickly identify where transactions should be sent.

Sometimes, using the SWIFT network and BICs is not optional; it is mandatory. Before sending an international payment, check what your financial institution requires.

Summary

SWIFT and BIC standardize the information transmitted between financial institutions when sending or receiving international funds. When creating a gift list or cash fund online, it is important that you put the appropriate security measures in place, which is why Un Grand Jour uses the SWIFT network and BICs. For more information on the security of our payment solution, contact a member of the team today.

FAQS

Is a SWIFT code the same as a BIC code?

SWIFT is the messaging network used by institutions to transmit information, while BIC is the code sent on the SWIFT network. Technically, the two mean different things but are commonly used interchangeably.

How do you find your SWIFT/BIC code?

SWIFT information and BICs can be found on your bank statement, on your mobile app, or by contacting your local branch. If you don't have access to these methods, you can search for your code using an online search tool.

What does SWIFT and BIC mean?

SWIFT stands for Society for Worldwide Interbank Financial Telecommunications. BIC stands for Business Identifier Code.

Are SWIFT or BIC codes required for international payments?

In most cases, the BIC of the recipient of the money must be transmitted via SWIFT. Without this information, the transaction will most likely fail. You may also need to provide a International bank account number (LEBANON).

Is there a charge for using SWIFT and BIC codes?

Using SWIFT to send international payments may result in fees imposed by your financial institution. Contact the institution you are using for more information on specific fees.