What is Bank Swift Code?

What is the difference between bank swift code and bic code?

SWIFT and BIC codes are basically the same. The Society for Worldwide Interbank Financial Telecommunication (SWIFT) handles the registration of these codes. For this reason, Bank Identifier Codes (BICs) are often called SWIFT addresses or codes. SWIFT codes or the bank identifier codes are provided to financial institutions by the Society for Worldwide Interbank Financial Telecommunication, which is put to use to identify financial as well as non-financial institutions.

What is a bank bic code?

Bank swift code which is also referred to as the BIC code is a unique code that is used to recognize financial and non-financial institutions. The bank swift code comes with eight or eleven characters that throw light on details regarding the bank code, country code, location code, and the branch code. The first four letters of a eleven digit bank swift code is but the bank code, followed by another two digits that identifies the country code, as the next two letters help identify the location of the financial institution. The last three letters tell us more about the branch related to a financial institution, which is but an optional code of letters that come along with the other details of a financial institution.
swift code

Example: "DEUTDEBB101"

"DEUT" 4 letters: Institution Code or bank code.
"DE" 2 letters: ISO 3166-1 alpha-2 country code
"BB" 2 letters or digits: location code
if the second character is "0", then it is typically a test BIC as opposed to a BIC used on the live network.
if the second character is "1", then it denotes a passive participant in the SWIFT network
if the second character is "2", then it typically indicates a reverse billing BIC, where the recipient pays for the message
as opposed to the more usual mode whereby the sender pays for the message.
"101" 3 letters or digits: branch code, optional ('XXX' for primary office)

Where an 8-digit code is given, it may be assumed that it refers to the primary office.

How bank swift code helps businesses?

Businesses that plan to enter into transactions with clients located in other countries should take note of the bank swift code to enable smooth international transactions. As an inherent part of international transactions, bank swift code is used to transfer money between banks, particularly for telegraphic transfers and wire transfers. This code is also used by banks across the globe to exchange messages between them.

For a client who wants the payment to be transferred to a Deutsche Bank located in Frankfurt, the SWIFT code pertaining to the bank that is DEUTDEFF should be given to the business partner located in another country to enable quick and a safe international payment process. Likewise, making use of the bank swift code DABADKKK, a business merchant can transfer payment to the Danske Bank located in Copenhagen. By knowing how to identify the bank swift code, business merchants can transfer money to clients located in other countries without any hassles.

How SWIFT brings benefits for business community?

By making use of the services rendered by financial as well as non-financial institutions that carry a bank swift code, businesses can make international payments with ease. Financial institutions under the SWIFT network enhance their operational efficiency, streamline operations and pave way for a better customer experience. When businesses makes use of a financial institution that has a bank swift code, turnaround time with respect to payments become shorter, which ultimately result in a quicker and an easier release of payments to a client located in another country.

Most importantly, by making use of SWIFT standards, banks tend to gain transparency related to the payment chain that is set into motion, which ultimately brings benefits for the customers. In simple terms, SWIFT enables financial institutions to cater to the needs and wants of commercial customers in a better way. By making use of reliable resources to obtain the Bank swift code, businesses can speed up the international payment process that can result in quick payments for clients found across the globe.