Updated
GL-I-05
Glossary · Banks and finance
IBAN - the international account number a transfer cannot land without
The international bank account number — a standard in Europe and most countries. Without an IBAN you cannot receive an international transfer. EMIs also issue IBANs.
01 / In 30 seconds
The short answer
- What it is
- The international format of a bank account number
- What it looks like
- Two country letters, two check digits, then the account number
- Where it applies
- Europe and most countries of the world; the US uses a different format
- Why it is needed
- Without it an international transfer is usually not credited
- Who issues it
- Banks, as well as licensed EMIs and payment institutions
02 / In plain words
What IBAN means
An IBAN (International Bank Account Number) is the international format of a bank account number. Put simply: an ordinary account number written to a single standard, so that any bank in the world understands which country and which bank the account is in.
The structure is always the same: the first two letters are the country code, the next two digits are check digits, followed by the internal account number and bank code. The length differs by country but does not exceed 34 characters. The check digits let the system catch a typo before the money is sent.
The format is used by European countries and dozens of states beyond Europe. The United States and some other countries do not use the IBAN — there the account number and a local bank code are given instead. An important nuance: IBANs are issued not only by traditional banks but also by licensed EMIs and payment institutions, and these are not always equivalent in reliability or in how the receiving party treats them.
A case from practice
A client was going to pay a state fee from an account with a payment service. We checked the programme’s conditions in advance: payments were accepted only from a bank account in the applicant’s name. The money was sent from the correct account — and the application was accepted without delay.
When you will need an IBAN
- Receiving an international transfer
- Paying the programme investment
- Opening an account with a European bank
- Settlements for real estate
- Salary or dividends from abroad
- A refund from a seller
03 / What it covers
What an IBAN consists of
The start of the number
- Two letters — the country code
- Two check digits
- Protection against typos
The body of the number
- Bank code
- Branch (in some countries)
- Internal account number
Where it works
- Europe and the EEA
- Dozens of countries outside Europe
- The US uses a different format
Who issues it
- Traditional banks
- EMIs and payment institutions
- The licence status matters
04 / How it works
How to use an IBAN correctly
Request the details officially
Bank details from the recipient's official letter.
Check the IBAN and the account holder’s name
The account number and holder's name match the recipient.
Give the bank’s BIC
The recipient bank's code for an international transfer.
Send the transfer
A transfer from an account in your name, with a clear purpose.
Receive confirmation of crediting
The recipient confirms the money has arrived.
05 / Key facts
What you need to know
01Structure
Country, check digits, account
Two letters for the country, two check digits, then the bank code and account number. No more than 34 characters.
02Where it is used
Europe and dozens of countries
The US and some other countries do not use IBAN: they use an account number and a local bank code.
03IBAN and BIC
Usually both are needed
The IBAN identifies the account, the BIC the bank. Banks usually ask for both for an international transfer.
04Who issues it
Banks and EMIs
Payment institutions issue IBANs too. Some government programmes, notaries and sellers do not accept payments from EMIs.
Common mistakes
Taking the IBAN from an email thread
Use the details from the recipient's official letter and confirm them by phone.
Sending money to an IBAN in another person's name
Check that the account holder's name matches the recipient.
Assuming any IBAN is a European bank account
Find out whether it is a bank or an EMI, and whether the recipient accepts such payments.
06 / Expert advice
How to prepare in advance
The details are taken from the recipient’s official letter or invoice, not from a messaging app, and the account holder’s name is checked against the name of the party in the contract. If your account is with an EMI, it is worth confirming in advance whether the recipient accepts payment from a non-bank institution: some state programmes and notaries work only with traditional banks.
What we do for you. We check the payment details before the money is sent: we compare the IBAN and the holder’s name with the recipient’s official letter and confirm in advance whether the receiving party accepts payments from your type of account. It is the cheapest insurance against returns and lost time.
Dmitry NagyTax consultant, international taxation and compliance (ex-Big4)
07 / Questions
Frequently asked questions
It is your bank account number in international format. With it any bank in the world understands which country and which bank the account is in.
As a rule, yes. The IBAN points to the account, the BIC to the bank. Many banks require both for an international transfer.
No. The format is used by European countries and dozens of states beyond Europe, but the United States, for example, uses a different set of details.
Technically the number works the same way, but behind it stands not a bank but a licensed payment organisation. Some state programmes, notaries and sellers do not accept such payments.
Most often the payment will not go through because of the check digits, or it will be returned to the sender. Contact your bank at once — the chances of a quick return are higher before the money is credited.
It can, but for citizenship and residence programmes it is almost always a problem: the payment is expected from the applicant themselves. A name mismatch raises compliance questions.
Related terms
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