IBAN number: What it is, structure, and how to find it

An IBAN (International Bank Account Number) is a standardized code format that makes cross-border financial transactions secure and efficient. Before IBAN standardization, international payments were often delayed or sent to the wrong accounts. By providing a consistent way to identify bank accounts across different countries, this international standard ensures payments reach their intended destination quickly and safely.

This guide will break down the structure of IBAN numbers, how they work, and why they matter for anyone sending or receiving money internationally.

What is an IBAN number?

Before IBAN numbers, each country had its own account numbering system. This created confusion and errors when money moved between banking systems. The IBAN number standardizes the format, making it easier for banks worldwide to correctly process transactions.

What is the purpose of an IBAN number?

IBAN numbers essentially reduce the risk of errors in international transactions. If account details are entered incorrectly or in an inconsistent format, payments can be rejected, delayed, or sent to the wrong account.

These mistakes often require manual intervention, adding days or weeks to transaction times and incurring extra fees. With properly formatted IBAN numbers, most errors are caught during validation before the payment is processed.

For example, before IBAN numbers, European countries used different bank account number formats. Payments often ended up in the wrong places, requiring extra fees and time to fix. Banks had to manually process many international transfers, increasing both cost and delay.

To solve these problems, the International Organization for Standardization (ISO) published ISO 13616 in 1997 as the international standard for IBAN structure and validation. The current version is ISO 13616:2020, with SWIFT as the formal registrar.

The result was fewer errors in international wire transfers and other financial transactions. With multiple countries using the same system, it's now easier to send money across borders. Financial institutions process payments more efficiently, saving time and resources on international transfers.

How are IBAN numbers structured?

An IBAN number is made up of three key components, always in the same sequence:

• Country code: The first two letters show where the bank account is located. For example, DE for Germany, FR for France, and GB for the United Kingdom. This tells the system which country's banking rules apply.
• Check digits: The next two numbers are used for mathematical validation. Banks use these digits to check for errors when an IBAN number is entered or transmitted. If the check digits don't match the expected result, the IBAN number is flagged as potentially incorrect.
• Basic Bank Account Number (BBAN): The rest of the IBAN number identifies the specific bank, branch, and account. The BBAN format varies by country but always follows the country code and check digits.

Here is an example of what an IBAN number could look like (provided for educational purposes only):

Germany: DE23 YCSA 2103 2479 0182 01

• Country code: DE (Germany)
• Check digits: 23
• BBAN: YCSA 2103 2479 0182 01 (bank code, branch code, account number)

IBAN number adoption by country

IBAN numbers are most widely used in Europe, where the system began and is now standard for both domestic and cross-border transactions.

• Europe: All EU countries, Norway, Switzerland, and the UK use IBAN numbers extensively
• Middle East: Countries like Saudi Arabia, Qatar, and the UAE have adopted IBAN numbers
• Africa and Caribbean: Nations such as Tunisia, Mauritius, and the Dominican Republic use IBAN numbers as well

The United States and Canada do not use IBAN numbers for domestic transactions. However, most major banks in these countries can process incoming international transfers that include IBAN information.

• US: Uses routing numbers (ABA numbers) and account numbers for domestic transfers
• Canada: Uses institution numbers, transit numbers, and account numbers

In the US, routing numbers serve a similar purpose to part of what IBAN numbers do internationally. The nine-digit routing number identifies the specific financial institution and its location. However, routing numbers lack the standardized format and validation features of IBAN numbers. That's why international transfers to US banks often require extra information.

When sending money to the US from an IBAN-using country, you'll typically need the recipient's routing number, account number, and the bank's SWIFT code instead of an IBAN number.

How to find your IBAN number

Finding your IBAN number is easy, and you have several options:

• Online banking: Log in to your bank's online portal. Go to your account details or information section. Your IBAN number is usually displayed alongside your account number.
• Paper statements: Check your monthly bank statement. The IBAN number is often printed near the top or in the section listing your account details. It may be labeled clearly or found under "International Banking Details."
• Debit cards: Some banks print the IBAN number on the reverse side of your debit card, usually below the magnetic strip or near other account info. Not all banks do this, but it's worth checking for quick access.
• Contact your bank: If you can't find your IBAN number, call your bank's customer service or visit a branch in person. After verifying your identity, they can provide your IBAN number.

How does an IBAN number work?

When you send money internationally, the IBAN number guides your payment through the global banking system in a few key steps:

1. Initiation: You provide the recipient's IBAN number to your bank, online, via mobile app, or in person
2. Validation: Your bank validates the IBAN by checking the country code and running the check digit calculation to confirm the format is correct
3. Transmission: The payment instruction is sent through the international banking network
4. Identification: The recipient's bank uses the IBAN to identify the correct branch and account
5. Acceptance: Funds are credited to the recipient after final verification.

IBAN numbers work together with SWIFT (Society for Worldwide Interbank Financial Telecommunication) codes. The IBAN number identifies the specific account, while the SWIFT or BIC (Bank Identifier Code) points to the bank itself. The SWIFT code identifies the bank, and the IBAN identifies the specific account. You typically need both for international transfers.

What is the IBAN registry?

The IBAN registry is an official catalog of countries that follow the latest IBAN standards (ISO 13616). Published and maintained by SWIFT, it serves as the go-to reference for financial institutions worldwide.

The registry includes:

• Detailed information about each country's IBAN format, including structure, character types, and length requirements
• Update history for the document
• Clear definitions of important terms used in IBAN transactions

Banks and payment processors regularly consult the registry to validate IBAN numbers and keep their systems up to date with any changes to the standard. This ensures consistency across the global financial system.

Which banks use IBAN numbers?

Whether your bank uses IBAN numbers depends on your location:

• United States, Canada, Australia, New Zealand, and China: These countries do not use IBAN numbers for domestic transactions. Instead, they rely on systems like SWIFT codes and routing numbers for both domestic and international transfers.
• Europe, Caribbean, Middle East, North Africa: IBAN numbers are widely used in these regions. The system started in the European Union and now covers over 69 countries worldwide.

Even in countries that don't use IBAN numbers domestically, many banks can process incoming payments that include IBAN information.

IBAN vs. other codes and systems

When sending money internationally, you'll encounter several codes and systems. Each plays a unique role in making sure your payment arrives safely.

IBAN vs. SWIFT

SWIFT is a global network that lets banks securely exchange information about financial transactions. The SWIFT code (8–11 characters) identifies a specific bank in the global system. IBAN numbers identify individual bank accounts, while SWIFT codes identify the banks themselves.

When sending money abroad, you usually need both:

• The SWIFT code directs your payment to the right bank
• The IBAN number ensures it reaches the correct account

Here are the key differences between IBAN numbers and SWIFT or routing numbers:

Some global banking systems refer to SWIFT codes as BIC (Bank Identifier Codes). When you see BIC codes, the same logic as SWIFT applies as they serve the same purpose. For international transfers, both a SWIFT/BIC and an IBAN are typically required. The SWIFT/BIC identifies the recipient’s bank, while the IBAN identifies the specific account at that bank. Used together, they help ensure that your payment reaches the correct destination accurately and securely.

IBAN vs. SEPA

SEPA (Single Euro Payments Area) is not a code, but a payment network and set of standards for euro-denominated transfers within Europe. SEPA payments require an IBAN number for processing. When making a SEPA transfer, you provide the recipient's IBAN number, and the payment is processed according to SEPA rules and timelines.

SEPA has made cross-border euro payments as simple and cost-effective as domestic ones in many cases.

IBAN costs and fees

Banks don't charge a fee just for using an IBAN number as it's simply an account identifier. However, international transfer fees still apply when sending or receiving cross-border payments.

Using IBAN numbers won't automatically lower these standard fees, but it does help you avoid extra costs from payment errors or delays. If a payment is rejected due to incorrect details, banks may charge return fees, investigation fees, or even a second transfer fee to resend the payment.

To avoid surprise fees and ensure you don't pay more than necessary:

• Check with your bank about their fee structure for international payments
• Ask about both outbound and inbound transfer costs, plus any currency conversion fees
• Ask whether your bank offers discounts for online transfers or premium accounts

Knowing the full fee structure helps you budget for international transactions and may help you find more cost-effective options.

Using IBAN numbers in business banking

Businesses rely on IBAN numbers for international payments and receipts:

• Paying suppliers: Companies sourcing materials or services globally need to make timely payments. Accurate IBAN numbers ensure suppliers are paid promptly, helping businesses avoid late fees and keep supply chains running smoothly.
• Receiving payments: Businesses expanding into new markets use IBAN numbers to build global financial relationships. Efficient cross-border payments help establish credibility with international partners and customers.

Understanding how IBAN numbers function in these contexts allows your business to conduct international financial activities with confidence and precision, building a foundation for global financial success.

Streamline all your business payments with Ramp

Ramp is a business spend management platform designed to help companies automate, control, and optimize how they pay bills—domestically and globally—without the hassle of juggling multiple systems or providers.

Ramp supports a wide range of payment types to help your business move money exactly how—and when—you need to:

• International wire transfers: Ramp supports payments to vendors abroad in U.S. dollars or payments to international vendors in their local currency for eligible locations
• Domestic wire transfers: Great for large, time-sensitive payments. Ramp enables same-day domestic wires for eligible transactions, with secure processing through the Fedwire network.
• ACH (direct deposit): Ideal for payroll, recurring vendor payments, and predictable disbursements. Ramp supports both regular and same-day ACH for faster delivery on eligible bills.
• Check payments: For US-based vendors who still prefer checks, Ramp can issue and mail checks on your behalf
• Ramp cards: Pay vendors by card—either with your existing cards or one-time-use Ramp cards—to earn cashback for vendors that accept Visa

By combining control and ease of use, Ramp helps you streamline every payment, whether it’s recurring or last-minute, small or large, domestic or international.

Whatever the need, Ramp makes it easy to manage spend.