IBAN vs Routing number in 2024 (2024)

What is an IBAN?

An IBAN, or International Bank Account Number, is a unique identifier for bank accounts around the world, usually used for worldwide interbank financial telecommunication. If you’re transferring money to a contact located outside your country of residence, you’re likely to be asked for an IBAN to facilitate the transfer.

IBANs are specific to each individual bank account, so every account that uses the IBAN system globally will have a slightly different code, even if they’re held with the same financial institution.

What is a routing number?

A bank routing number is a unique set of nine digits used as a bank identifier code in the US. Also known as the American Bankers Association (ABA) routing number, or Routing Transfer Number (RTN), a routing number is assigned to a banking institution when it is set up.

Unlike IBANs, bank routing numbers are unique to banking institutions, but not individuals. This means two individuals that hold a US bank account with the same bank will have the same routing number on their checks; the bank account number differentiates between them.

What is the format of an IBAN?

IBANs are composed of up to 34 alphanumeric characters, which include a two letter country code, a check number, a bank identification code, a branch code, and a basic bank account number. Because countries use different systems for numbering their accounts, the IBAN length will vary from country to country.

What is the format of a routing number?

A routing number consists of nine digits that are unique to your bank, but do not identify your account. They include four digits identifying the location of the Federal Reserve bank your account is connected to, known as the Federal Reserve routing number, four digits identifying the specific financial institution you bank with, and a final digit to verify the accuracy of the routing number using a mathematical calculation.

Unlike an IBAN, a bank routing number only identifies the location of your financial institution, rather than the individual bank account you hold. They’re always exactly nine digits long as they do not need to incorporate differing lengths of identifiers.

What is an IBAN used for?

IBANs are used primarily for international bank transfers, as they identify the exact destination account for the transfer in one code. Some countries also use IBANs for domestic transfers, but they contain a lot of excess information in these cases that is not necessary for completing the transfer.

The US doesn’t use international bank account numbers (IBAN), so any international payments made to the US from overseas, whether in a country that uses IBANs or not, will require the routing transit number and account number.

When you make a cross-border transfer to a country that uses the IBAN system, the characters of the IBAN are scanned by the payments system your bank uses. By verifying the code against the international database, the system is able to confirm the location of the intended recipient’s account.

What is a routing number used for?

If you’re transferring money internationally from the US, you’ll be asked to provide your routing number so the recipient banks can identify exactly where the funds have come from. You’ll also need to supply the routing number of the recipient bank if you’re transferring money from overseas to the US.

As well as this, you’ll often be asked for both your routing number and account number when you’re making a payment by phone or online, or if you’re making automatic payments for things like bills or direct deposits.

Where can I find my IBAN?

Your IBAN will often be available when you log in to your online banking account. Alternatively, you can check your bank statement, visit your local branch, or use an IBAN calculator.

Where can I find my routing number?

As your bank’s routing number is not specific to your account, you should be able to find it on your bank’s website. Alternatively, you may find it when you log in to your online banking account, or you can check your bank statement, a personal check, or contact your local branch directly.

Your bank’s routing number is usually printed at the bottom of your bank statement, and in the bottom left hand corner of your checks.

Do other countries use routing numbers?

The US is the only country that uses routing numbers. Over 82 countries and territories currently use the IBAN system.

Are SWIFT codes/BICs different from IBANs and routing numbers?

No, a SWIFT code/BIC is different to both IBANs and routing numbers.

A Bank Identifier Code (BIC) is assigned to a banking institution in order to identify it globally. During international transfers, this code is communicated between the transferring and receiving banks via the secure SWIFT network. IBANs identify specific accounts, and routing numbers only identify the location of banks in the US.

When completing financial transactions internationally, it’s likely you’ll need both the BIC and either the IBAN or the routing number of the bank you’d like to transfer the money to.

How do I use IBANs and routing numbers when making an international money transfer?

When making an international money transfer, you’ll need to supply either the IBAN or the routing number of the recipient’s bank, depending on which country you’re transferring the money to. This allows banks to confirm the validity of the target location before any money is transferred.

In the case of routing numbers, you’ll also need to provide the recipient’s bank account number, as the routing number only defines the location of the bank their account was opened with.

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