SWIFT code

SWIFT Code

A SWIFT code is a standardized identification code assigned to banks and financial institutions worldwide. It is used to identify a specific bank during international wire transfers, ensuring that money is routed to the correct institution in the correct country. SWIFT stands for Society for Worldwide Interbank Financial Telecommunication, which is the organization that manages this global messaging network.

A SWIFT code is typically between 8 and 11 characters long and is made up of letters and numbers. The code generally breaks down into three parts: a 4-character bank code that identifies the institution, a 2-character country code, and a 2-character location code. An optional 3-character branch code is sometimes added at the end to identify a specific branch. You may also see SWIFT codes referred to as BIC codes, which stands for Bank Identifier Code. In most cases, the two terms are used interchangeably.

When you send money internationally, your bank will typically ask for the recipient’s SWIFT code along with their account number. Without the correct SWIFT code, a transfer can be delayed, misdirected, or returned. Most banks make their SWIFT code available on their website, on bank statements, or through customer service.

Why it matters

If you ever need to send or receive money across national borders, a SWIFT code is generally required. This applies to a range of common situations, including paying overseas suppliers, receiving a salary from a foreign employer, or wiring funds to a family member abroad. Using the wrong code can cause your transfer to fail or be delayed, sometimes resulting in additional fees from your bank or the recipient’s bank.

It is important to double-check any SWIFT code before initiating a transfer. Even a single incorrect character can cause problems. Your recipient’s bank is typically the best source for confirming the correct code.

Example

Suppose you need to send money from your U.S. bank account to a friend’s account in Germany. Your bank will ask for your friend’s IBAN (International Bank Account Number) and the SWIFT code for their German bank. Your friend checks their bank’s website and finds the code DEUTDEDB, which identifies Deutsche Bank in Germany. You provide this code to your U.S. bank when setting up the transfer, and the funds are routed correctly to your friend’s account.

Related terms

• IBAN (International Bank Account Number)
• Wire transfer
• Routing number
• Correspondent bank
• Foreign exchange (FX)