Both IBANs and routing numbers help with money transfers by identifying included banks and accounts — but they are not the same.
The IBAN is used widely in the United Kingdom and SEPA region. It verifies the individual bank account, whereas a routing number is a bank identifier code exclusively used in the US.
IBAN vs Routing Number: Key Differences in How They Work
Both IBAN and routing numbers are numerical systems that allow the identification of a specific bank account. Both ensure that each money transfer arrives in the right place — but they operate in different contexts.
IBAN is commonly used in Europe, the Middle East, and the United Kingdom. It's unique for each bank account, and it identifies the account itself.
The routing number, on the other hand, is a bank identifier code that locates a US-based bank.
If the recipient's bank is based in a country that uses IBAN, any transfer there would require their unique IBAN along with other details.
Similarly, any US account holder needs to share their routing number along with other details with the sender.
What Is an IBAN?
IBAN is an internationally agreed code consisting of 34 letters and numbers. It helps banks process transfers around the world.
International Bank Account Number (IBAN) was developed as a solution to standardize cross-border payment identification processes. Countries had different systems to codify bank account identification, such as bank name, branch, account number, and routing codes.
This has caused much confusion and frequent transcription errors in processing international transfers. International Organization for Standardization began working on IBAN to systemize global bank identification, which has managed to reduce errors in cross-border transfers to under 0.1%.
Alphanumerical characters in IBAN represent the country code, bank name, branch, and account number. It also includes check digits, which verify the accuracy of the code. It is guaranteed to identify any instances where a character is duplicated or omitted, and thus minimize the errors.
Although it includes the same information, IBAN does not replace other identifying agents like the account number, sort code, or routing number. It adds another layer of verification, and within the context of the US, it’s only used for international transfers.
Countries in Europe, the Middle East, and the Caribbean adopted IBAN to use it internationally and domestically. The US never adopted it.
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Anatomy of an IBAN
IBAN is comprised of up to 34 alphanumerical characters, and every country has a set length for the numbers.
It starts with a two-letter country code, like GB for the UK or PT for Portugal.
The following two digits, called check digits, allow for verification of the following code’s existence.
Basic Bank Account Number makes up the last up to 30 characters, and it may include information on the bank, branch, and account number of the beneficiary. Some IBANs have multiple zeros added to make up for the specified country length.
Come together, an IBAN looks like this;
IE12 BOFI 9000 0112 3456 78 (Ireland)
FR76 3000 6000 0112 3456 7890 189 (France)
BR15 0000 0000 0000 1093 2840 814 P2 (Brazil)
Workings of IBANs
When making a transaction, international bank account numbers help identify the destination country, bank, branch, and the specific account number of the recipient and verify the details of the transaction, as it is used to accompany the account number and other account identifying information.
Your bank runs the IBAN through its payment system to verify the recipient’s account and begin the transfer.
Who Uses It?
The IBAN system was originally developed to be used in the Eurozone, but it quickly spread to the rest of the world. Today it's used throughout Europe, as well as some parts of the Middle East and North Africa. Some countries, including Austria, UAE, Bulgaria, and Kazakhstan, use IBAN to help domestic as well as global transfers.
If a country, like the UK, has adopted the IBAN system but does not use it domestically, the account holders may not see the code on their bank statements. In those cases, they would need to contact their bank to generate one, so they can accept international payments.
Most notably, North America, Asia, and Oceania countries don’t use IBAN, with the US and China being among the largest markets that have not adopted the system. It's also missing in some of the emerging markets, including India and Nigeria. These countries do recognize the system, though, and use it when sending a payment to a country that has adopted it.
When You May Need It
IBAN is required for a bank account registered in a region that adopted the IBAN system. It allows the account to receive funds through the identification system. Individuals with bank accounts in these countries always need to share their IBAN to receive international payments and, in some cases, for domestic transfers.
You will need an IBAN in the following circ*mstances:
You need to send money to a country that is within the IBAN registry.
You will receive money in an account based in a country that is within the IBAN registry.
This means that you won’t need to use IBAN and routing numbers together.
However, IBAN is not the only banking detail required, as the sender also needs to know the beneficiary's account number and other regional account identifiers.
US-based account holders only need an IBAN for recipients of countries that use the system. They do not require an IBAN to receive money from abroad.
How to Locate an IBAN
You can usually find your IBAN at the top right-hand side of a bank statement. If not found, it's possible to use online generators on banks’ online services or by directly contacting the bank.
It is possible to generate IBAN using other bank identifiers: sort code and account number in the UK, or bank code and account number in countries that are registered in the IBAN registry.
If you are living in a country that is not using IBAN, like the US, chances are that you won’t need an IBAN of your own. This is because it’s not required to receive transfers to your own account, either domestically or internationally.
The easiest way to find out someone else’s IBAN is simply to ask. If you’re unsure about whether it’s correct, you can use the official verification tool and double-check it. Alternatively, if you know the recipient’s account number and bank code, you can use the generator tool to find their IBAN. If you only have the account number information, you can access bank codes (or sort codes in the UK) online.
What Is the Bank Routing Number?
Also referred to as an ABA (American Bankers Association) routing number or RTN (routing transit number), a bank’s routing number identifies the banks involved in a money transfer. It also verifies that the institution maintains an account with the Federal Reserve.
First developed back in 1910, the routing numbers standardized bank identification in the US.
The 9-digit code includes information about the following
1. The bank’s physical location,
2. The Federal Reserve bank routing the transaction,
3. The Federal Reserve check processing center or the bank,
4. The Federal Reserve district where the bank is based,
5. And a security number.
Along with the account number, the routing number is used in processing the Fedwire transfers or ACH direct deposits to identify the recipient’s bank account.
Note that ACH routing numbers are often separate from the ABA routing numbers and strictly refer to electronic transfers made via the clearinghouse, like direct deposits.
All transfers from and to a US-based account require a routing number and the BIC/SWIFT code alongside it if it's an international payment. It's possible to find different routing numbers for different transfer methods, like checks, direct deposits, or wire transfers.
Anatomy of a Routing Number
A routing number is a 9-digit code that is unique to a US bank, also known as the bank ID, and it has three elements:
The first four digits are referred to as the Federal Reserve Routing Symbol, which identifies the institution’s physical location
The second four digits make up the ABA institution identifier, which includes the bank routing the transaction, the check processing center, and the Federal Reserve district the bank is based in
The last digit is the check digit, which ensures there are no transaction errors, similar to IBAN’s third and fourth characters.
Here are some examples;
026009593 (Bank of America)
322271724 (Citibank CA)
121042882 (Wells Fargo CA)
Workings of Routing Numbers
American Banking Association manages the routing number system in partnership with Accuity, together they are responsible for assigning every financial institution in the US a routing number.
Each institution gets at least one routing number and may have up to four of them. Some larger banks may have different RTNs for their operations in different states, and some may have different numbers for different transfer types.
Routing numbers allow identification with the account number, meaning that it changes from bank to bank but not necessarily from one bank account to another. Two accounts from a single bank, such as checking and savings accounts, may share the routing number but will have different account numbers.
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Who Uses It?
Routing numbers are exclusively used by US-based financial institutions that maintain an account with the Federal Reserve. So no other country uses the RTN identification system as it is used in the US, but they may have country-specific numerical systems with the same function as a routing number.
When You May Need One
The routing number helps identify bank accounts registered in the United States along with the account number, and it is used to receive funds both domestically and internationally.
If you are receiving a money transfer to a US bank account, you need to share your routing number with your sender.
You will only need routing numbers when sending money to US bank accounts.
While you don’t need a routing number for an international wire transfer, you do need other identifiers required by the recipient’s country — like SWIFT, IBAN, account number, bank code, or sort code.
Banks typically use different routing numbers for different modes of transaction. This means that the number you’ll need to write a check may not be the same for a wire transfer or direct debit, but all of which are very easy to acquire through the bank.
It's not too much of an issue if the sender uses the wrong routing number. As it’s a bank code, or identifier, the number will not match the account number, and the transfer will be rejected as the information is invalid.
How to Locate a Routing Number
The routing number of a bank is easily accessible through multiple means. It may be at the bottom of your checks, included on your bank statements, or be found through your bank’s web or mobile app services.
Note that some legacy banks may have different routing numbers for different states and different payment methods, so the routing number you may find on your checks may not be the same one used for electronic transfers. If in doubt, you can always contact your bank to verify which one you need.
US Bank Routing Number vs UK Bank Routing Number
The US is the only country that uses routing numbers, but the UK has a similar system. UK banks use sort codes with the same function to identify financial institutions located in Great Britain and the Republic of Ireland.
It's a 6-digit number code divided into two components: the first two digits identify which bank it is, and the last four verify the specific branch of the bank at which your account is registered.
Similar to routing numbers, sort codes are used domestically or when sending money to the UK from abroad. Note that although the UK is in the IBAN registry, it accepts payments both via IBAN and sort code.
Are SWIFT/BIC Codes Different from IBAN and Routing Numbers?
BIC, an acronym for Bank Identification Code, is used within the SWIFT, an acronym for The Society for Worldwide Interbank Financial Telecommunication, as a messaging system to identify banks globally.
The terms are interchangeable, and the code consists of 8 to 11 digits, with each bank having its own unique BIC/SWIFT codes. It doesn’t replace other bank identifying codes or numbers even when their functions overlap, including IBAN, account number, or routing number, but is used alongside them.
BIC/SWIFT code is used for international transfers only and is required to send and receive global payments — it uniquely verifies the name, country of origin, and potentially the branch of a bank. It's typically found on the bank's website or mobile applications.
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