From exchange rates to transfer times and getting the account details right, there’s plenty to worry about when you’re sending money. And there’s another factor to think about when you’re making a transfer abroad: IBAN numbers.
An IBAN is one of the most important pieces of information you need when sending money internationally. It’s designed to ensure that payments are routed exactly where they need to go.
In this Remitly guide, we’re breaking down everything you need to know about IBANs, from what the acronym stands for to how the number works, where you can find it in your banking details, and how to avoid common errors that crop up when using it.
What is an IBAN number?
When we talk about IBANs, we’re referring to International Bank Account Numbers. Although the phrase “IBAN number” is technically redundant, it’s commonly used and many financial institutions will refer to the code in this way.
An IBAN is a standardized, international code that’s used to accurately identify bank accounts in different countries. The number includes check digits that allow banks to automatically verify the account before processing a transfer, which helps to minimize errors and delays.
You can think of an IBAN as a postal address for a bank account. When you make an international money transfer, adding the IBAN to the instructions tells your bank or remittance provider where it should send the funds.
IBAN vs other banking codes
The IBAN is one of the most important codes you’ll use for international money transfers—like transferring money from Canada to Europe—but it’s far from the only one.
Depending on where you’re sending money, you’ll likely come across SWIFT codes, sort codes, routing numbers, as well as other bank and bank account identifiers. Each one of these serves a different purpose, and you might have to provide more than one to complete a transfer.
Where an IBAN identifies an exact bank account abroad, a SWIFT code (sometimes also called a BIC or Business Identifier Code) points to the bank itself. The SWIFT code ensures that the funds you send reach the right institution and branch, while the IBAN ensures they’re credited to the correct account.
There are also local identifiers. In the UK and Ireland, a sort code shows which bank and branch someone banks with. It’s often embedded in the IBAN. The equivalent in the US is known as the routing number or RTN.
You may also come across BSB or Bank State Branch codes (Australia), Indian Financial System Codes (India), Transit Codes (Canada), Bank Routing Symbol Transit Numbers (Philippines) and branch codes (South Africa).
| Code | What it does | Where it’s used |
| IBAN | Identifies a specific bank and bank account abroad | International transfers |
| SWIFT/BIC | Identifies a bank and a specific branch | International transfers |
| Sort code | Identifies a bank and a specific branch | Domestic transfers (UK and Ireland) |
| Routing number | Identifies a bank | Domestic transfers (US) |
| Branch codes | Identify local bank branches | Domestic transfers (Australia, Canada, India, and others) |
How IBANs work
An IBAN is a 15- to 34-digit number. It’s made up of several smaller number groups, each of which serve a distinct purpose for helping to ensure that an international money transfer is routed to the correct place.
The identifier starts with a two-letter country code. This indicates the jurisdiction where the bank account is held. Next are the two check digits. These are drawn up using an algorithm and allow banks to automatically verify whether an IBAN is valid before the transfer is processed.
The remaining numbers make up the national bank identifier. This usually includes the bank code, branch code, and account number. The number and structure of these digits will vary depending on the country of the target account.
Let’s take a look at an example IBAN to make things a little easier to understand:
DE89 3704 0044 0532 0130 00
We know this is an IBAN for a German bank account because DE is the country code for Germany. The check digits in this case are 89. The bank is Deutsche Bank, denoted by the numbers 3704 0044, and the individual account number (10 digits in Germany) is 0532 0130 00.
To ensure that transfers are error-free, IBAN uses a mathematical validation process:
- Rearrangement: The country code and check digits are moved to the end of the IBAN.
- Conversion: Letters are converted to pre-assigned numbers.
- Modulo 97 operation: The number obtained after rearrangement and conversion is divided by 97. If the remainder is exactly 1, the IBAN is validated.
This calculation helps to ensure that the IBAN number you use when making a money transfer is correct. If even one digit is mistyped or swapped, the IBAN will fail the check and the money won’t be sent.
How to use an IBAN for money transfers
With loads of numbers to deal with—and money on the line—transferring funds abroad can be nerve-wracking. Things are, fortunately, made a little easier when you know exactly what you need to do and how to do it. We’ll cover this in the sections below.
How to find an IBAN
Tracking down an IBAN is pretty easy, just as long as you know where to look.
One of the most common places you’ll find an IBAN is on the paper or digital bank account statements you receive from your bank every month. It’s usually grouped with your account number and other account details.
You can also search your online banking portal or mobile app for your IBAN. It will likely be listed under the account details for a particular bank account, but it may also appear in tabs or sections where foreign exchange details appear.
If you can’t find your IBAN in any of these places, the best way to find it is by contacting your bank directly. Customer services teams are trained to handle these requests and will be able to provide you with the number.
There are also online IBAN calculators that allow you to generate a number by entering your domestic bank details. While these tools can be useful, it’s important to exercise a little caution when using them and verify that the platform you’re using is legitimate.
IBAN money transfers: A step-by-step guide
Making an international money transfer with an IBAN is simple when you know what to do—and what you need. Following the steps set out below will help you to ensure the funds you send arrive at the right place without delay.
- Get the recipient details. You’ll need the full details of the person to whom you’re sending money, including their full name and address, their bank’s name, and their IBAN. You may also need a SWIFT code or BIC.
- Navigate to the international transfer area of your banking website or app. Many banks have separate sections for domestic and international transfers as these transactions usually require different details. Ensure you use the correct one.
- Enter the transfer details, amount, and currency. Enter the amount you want to send and specify the currency in which you want to send it. Use a currency converter and account for fees to ensure that the recipient will get the correct amount.
- Review the transfer details. Double-check every detail that you’ve entered into the transfer instruction form, including the recipient’s name, address, IBAN, and transfer amount.
- Submit the transfer. Once you’ve confirmed the payment, your bank will begin processing the transfer. You’ll usually receive a confirmation message that contains a reference number, which you can use to track the progress of the transfer.
Taking your time when working through these steps and carefully checking each detail will help reduce the chance of mistakes and give you peace of mind that your transfer will go through without a hitch.
How long does a money transfer take when using an IBAN?
Transfers made with an IBAN are often faster than other methods of transferring money from Canada because these numbers streamline processing and reduce the likelihood of errors.
Transfers within the European Economic Area will usually clear within one business day. Outside of Europe, timing can vary quite a bit, but you can usually expect the funds to arrive in the recipient’s account within one to five business days.
Common IBAN transfer mistakes and how to avoid them
Even though IBANs are designed to make international payments easier and more reliable, mistakes can happen. The good news is that most of them are easy to avoid—or fix.
One of the most common issues is typing errors or missing digits in the IBAN. These numbers can contain up to 34 characters, so it’s easy to mistype a number or even leave one out accidentally. Rather than entering the digits manually, it’s best to copy and paste the code directly from your bank’s records.
Another mistake that senders frequently make is confusing the IBAN with a domestic account number. While the IBAN does include this number, it also contains the country code, check digits, and bank identifier, all of which are essential.
Problems can also crop up if you use outdated details. An IBAN can only be associated with one bank account and it will change if the person you’re sending money to switches banks or accounts.
In some cases, it’s not the IBAN itself, but the additional details that can cause trouble. Banks often require the recipient’s full name, address, and SWIFT code or BIC alongside the IBAN to verify that the money is going to the right place. Leaving these out—or getting them wrong—can cause delays.
A little care will go a long way in helping you avoid these pitfalls. Always verify the IBAN with the recipient or their bank before starting a transfer, and double-check all of the other transfer details before pressing send. A quick review at the start can save days of delays later on.
IBAN numbers: Your key to accurate international payments
Whether you’re planning on sending money as a gift or transferring money to a seller overseas to pay for a product, understanding IBANs takes a lot of the stress out of making international payments.
When used correctly, IBANs make international banking more reliable. They improve payment speeds and offer added peace of mind that your funds will arrive where they’re meant to go.
By learning how IBANs are structured, where to find them, and how to use them, you can avoid delays that sometimes come with sending money abroad.
FAQ
Are IBAN numbers safe to share?
Yes, it’s generally safe to share your IBAN. It only allows money to be sent to your account and doesn’t reveal any sensitive information. Still, you should follow privacy best practices and avoid sharing it on public forums or with unknown third parties.
How long are IBAN numbers?
IBAN lengths vary by country, but can be anything from 15 to 34 characters in length. They always start with two letters, which indicate the destination country, and are followed by a string of numbers.
Can I send money without an IBAN?
It is possible to send money internationally without an IBAN if the recipient’s country doesn’t use IBANs (e.g. the US or Canada). You may also be able to execute a transfer using alternatives like a SWIFT code or BIC.
Do IBAN numbers expire?
No, IBANs don’t expire on their own. They will only change if you switch banks or get a new account. That said, it’s always best to confirm a recipient’s IBAN with them every time you make a transfer.
What happens if I use the wrong IBAN?
If you enter an invalid or non-existent IBAN, the transfer will be rejected. However, if the IBAN belongs to a real account, the transfer might go through. This can be difficult to reverse. As a result, it’s important to always double-check the IBAN with the recipient or their bank.