International Bank Account Number (IBAN)

International Bank Account Number (IBAN)
A standardized system for numbering individual bank accounts. It ensures accurate processing and efficient cross-border transactions.

Details

IBAN consists of maximum 34 alphanumeric characters. It includes a two-letter country code, two check digits, and a Basic Bank Account Number (BBAN). This system is used in 78 countries which include the United Kingdom, Germany, France, and Italy.

Purpose

IBAN improves the efficiency of international transactions. Banks use IBAN to validate account details and simplify payment processes.

Example

For a German account: DE89 3704 0044 0532 0130 00.

Structure

• Country Code (two letters)
• Check Digits (two digits)
• BBAN (up to 30 alphanumeric characters)

Verification

Banks use IBAN validation software to check the accuracy of the provided IBAN. This reduces errors in transactions.

Usage

IBAN is required for international transfers between participating countries. It ensures faster processing and fewer rejections.

Applicability

Applicable in SEPA (Single Euro Payments Area) countries and other countries choosing to adopt the standard.