If you send money abroad, your priority is to guarantee that your payment will arrive at the correct destination. This is where BIC and SWIFT codes come in.
These codes are a combination of letters and numbers that identify the bank to which you are sending money. They are used to ensure payments reach the correct bank and branch – and that your money gets to the right recipient.
SWIFT codes are assigned by the Society for International Financial Telecommunications , which recorded an average of 44.8 million messages per day in November 2022.
What is a SWIFT code?
A SWIFT code is a standard format of a BIC code (Business Identifier Code, sometimes also called a Bank Identification Code), which is used to identify banks globally.
All banks and financial institutions are assigned a BIC or SWIFT code and these are used to process international money transfers safely and securely using the SWIFT system.
Are BIC and SWIFT codes the same?
Yes, a SWIFT code is simply another name for a BIC code – there is no difference between them and they perform exactly the same function. The name varies by institution and it is often the case that a bank in a country you are transferring money from will use a SWIFT code while the one in a country you are sending money to uses a BIC code.
Is a BIC/SWIFT code always needed?
If you want to send money abroad, you will need the BIC code of the recipient. Likewise, if you are receiving a payment from overseas, the sender will need your BIC code. For any transaction that involves sending a large amount of currency, the benefits for both parties are obvious.
As well as a BIC code, you will need an IBAN (International Bank Account Number) when making an international currency transfer. Your IBAN number is a unique identification code for your bank account, detailing which country it is in, the account number and sort code.
Where can I find my SWIFT/BIC codes?
You can usually find your own BIC/SWIFT code at the top of one of your bank account statements.
If you don’t know the recipient’s BIC code, but you do know the country and bank name, you can usually locate it using an online BIC code search tool. Alternatively, you can ask your bank if they will provide you with the BIC code for the bank to which you are sending money.
What do the numbers and letters on a BIC code mean?
A BIC code is made up of either eight or 11 letters and numbers: the first four are the bank code and the next two are the country code. A two-digit location code and a three-digit branch identifier code follow these.
Not all banks include the branch identifier code, which means they may have a shorter eight-digit BIC code. For example, Barclays’ BIC code is BUKBGB22.
Should I use a bank or currency specialist?
Once you have all the details you need to make your international money transfer, it may not be wise to automatically turn to your bank, as this can be one of the least cost-effective ways to send money overseas.
A bank will tend to have much steeper overheads than a currency specialist, so their charges for processing international payments can be on the high side and their exchange rates are rarely the most competitive.
A specialist is often able to charge much lower international transfer fees because its operating costs will often be minimal. It can usually offer competitive currency exchange rates because it has access to more liquidity providers.
Foreign exchange specialists can also often provide access to a range of different tools to help protect you from volatility in the market. These include market orders, where you target a specific rate of exchange and your currency is bought or sold automatically when the market reaches this rate, and forward contracts*, where you ‘buy now, pay later’, with the facility to lock in the exchange rate for up to two years.
Therefore, it’s well worth comparing the fees and charges from currency specialists with those of your bank before you send money abroad, so you can be certain you are getting the best possible deal. This is important if you are planning to transfer a large amount of currency, as costs can soon mount up.
Send money abroad today
The Telegraph Media Group International Money Transfer Service is provided by Moneycorp, which offers transfers at competitive rates in more than 120 currencies. With Moneycorp, you also have access to a team of currency exchange experts who will talk you through the specialist products and tools you can use to ensure your money goes further, helping you to navigate the fast-moving currency markets with confidence. There are no online transfer fees and Moneycorp can get your money to where it needs to be quickly and securely.
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*Forward contracts may require a deposit
None of the information contained in this article constitutes, nor should be construed as financial advice. TTT Moneycorp Limited (company number 738837) is registered in England. Its registered office is at Floor 5, Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ. Moneycorp is a trading name of TTT Moneycorp Limited, which is authorised and regulated by the Financial Conduct Authority for the provision of payment services (firm reference number 308919). Date of approval 27/03/2023.
The above article was created for Telegraph Financial Solutions, a member of The Telegraph Media Group. For more information on Telegraph Financial Solutions click here.
