Updated
GL-B-05
01 / In 30 seconds
The short answer
- What it is
- A bank’s unique code in the international payment system
- What it looks like
- 8 or 11 characters: bank, country, city and, if needed, branch
- Another name
- The SWIFT code is the same thing
- Why it is needed
- Shows which bank the payment message should go to
- Where to get it
- In the recipient’s official details or from your bank
02 / In plain words
What BIC / SWIFT code means
A BIC (Bank Identifier Code) is a bank’s unique code in the international payment system. In everyday speech it is called the SWIFT code, and that is correct: it is the same detail. Put simply: the IBAN answers the question “which account”, and the BIC the question “which bank”.
The code consists of 8 or 11 characters. The first four identify the bank, the next two the country, and two more the city or head office. If the last three characters are added, they indicate a specific branch. An eight-character code usually routes the payment to the bank’s head office.
In practice the BIC decides which route your transfer will take and through which correspondent banks. An error in the code is a common cause of returns and delays: the message goes to the wrong place, the money gets stuck in the chain, and sorting it out takes days. That is why the details are always checked against the recipient’s official letter.
A case from practice
In a property seller’s payment details, the BIC did not match the country of the account. We requested official confirmation from the recipient’s bank before the money was sent — it turned out the details were out of date. The payment went through with the current code and arrived without any disputes.
When you will need a BIC
- An international SWIFT transfer
- Paying an investment or a state fee
- Settlements in a property transaction
- Receiving funds from abroad
- Giving payment details in a contract
- Checking a counterparty’s bank
03 / What it covers
What a BIC consists of
The first 4 characters
- The bank’s identifier
- Letters only
- Unique to the institution
Characters 5-6
- Country code
- Two letters
- A standard format
Characters 7-8
- City or head office
- Letters or digits
- Determines the route
Characters 9-11
- Branch code
- Not always given
- Without them — the head office
04 / How it works
How to use a BIC correctly
Get the details officially
The recipient sends the details in a bank letter or invoice.
Check the BIC against the bank’s name
We check that the code belongs to the right bank and country.
Give it together with the IBAN
The BIC goes together with the IBAN: bank and account.
Send the transfer
The payment goes via SWIFT, through correspondents if needed.
Confirm crediting
The recipient confirms the money has arrived.
05 / Key facts
What you need to know
01BIC and SWIFT
The same code
BIC is the official name, SWIFT code the everyday one. The recipient bank gives it in its details together with the IBAN.
02Code length
8 or 11 characters
Bank, country, city; the last three characters are the branch. An 8-character code sends the payment to the head office.
03Where to get it
Only from the recipient
From the bank letter, invoice or programme document. A code found online may be out of date.
04Cost of a mistake
A return or a stuck payment
The message goes to the wrong place, money gets stuck in the correspondent chain, and sorting it out takes days.
Common mistakes
Taking the bank code from the internet
Check the BIC against the recipient's official details: the bank letter or invoice.
Mixing up the head office and branch code
Use the version, 8 or 11 characters, that the recipient gave.
Not matching the BIC with the account country
Characters 5-6 are the country code. A mismatch with the IBAN country almost always means an error or an intermediary bank.
06 / Expert advice
How to prepare in advance
The BIC is taken only from the recipient’s official details — a bank letter, an invoice or a programme document. It is useful to check that the code corresponds to the country where the account is held: a mismatch almost always means an error in the details or an intermediary bank you should know about in advance.
What we do for you. We check the BIC and IBAN before the transfer and request official confirmation of the details from the recipient’s side. For large sums this is a mandatory step: it protects against both a simple typo and details being substituted in correspondence.
Dmitry NagyTax consultant, international taxation and compliance (ex-Big4)
07 / Questions
Frequently asked questions
No, they are the same detail. BIC is the official name, SWIFT code the colloquial one.
Eight characters route the payment to the bank’s head office, eleven to a specific branch. Both work if that is what the recipient gave.
The bank, country and city, and with 11 characters the branch too. From it the system knows where to deliver the payment message.
As a rule, yes. Many banks require both details, although some payments within Europe go through on the IBAN alone.
The payment will either not be accepted or go to the wrong place and come back, with time and fees lost. That is why the code is checked against the official details.
From the recipient — in a bank letter, an invoice or a programme document. Data from a search engine may be out of date.
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