What is an International Bank Account Number (IBAN)?

Key takeaways

• An IBAN (International Bank Account Number) is a standardised code of up to 34 characters that identifies individual bank accounts for international transfers, and it's used mainly in Europe and parts of the Middle East, Africa and the Caribbean.

• Australia, the US, China, and New Zealand don't use IBANs. If you're in Australia, you'll provide a BSB and account number instead.

• With an Airwallex Global Account you can create local banking details in 20+ currencies, including an IBAN, allowing you to send and receive international payments in 70+ countries.

If you've ever tried to pay an overseas supplier or get money from a customer abroad, you've probably been asked for an IBAN.  An International Bank Account Number (IBAN) is a standardised code that identifies individual bank accounts for cross-border payments. It's used mainly in Europe, but you'll also come across it in parts of the Middle East, Africa, and the Caribbean. 

Australian bank accounts don't have IBANs. Instead, you'd provide a BSB and account number to receive international payments. Here's what you need to know about IBANs, including how to set up an IBAN for your business. 

What is an IBAN number?

An IBAN is a standardised account identifier that banks use to process international transfers. Think of it like a full postal address for your bank account, with the country, city, street, and house number all rolled into one string of characters. Instead of piecing together separate codes, the sending bank gets everything it needs in one go.

The main benefit is simple: fewer errors and faster transfers. Before IBANs existed, European countries all used different account number formats. That led to misdirected payments, delays, and extra costs. The IBAN system fixes that by giving every account a unique, internationally recognised identifier.

IBANs are separate from regular bank account numbers and sort codes. Those identifiers work fine for domestic transfers, but an IBAN pulls all the relevant details together for cross-border payments. Countries like Australia, the US, and China don't use IBANs. They rely on other identifiers like BSBs, routing numbers, and SWIFT codes instead.

Why were IBANs introduced?

Before IBANs came along, sending money across European borders was a headache. Each country had its own account number format, so banks had to manually interpret and validate foreign account details. Mistakes were common, transfer times dragged out, and businesses paid for it in extra fees and lost time.

In 1997, the International Organisation for Standardisation (ISO) published the first IBAN standard to fix this problem. The current version, ISO 13616-1:2020, sets out how IBANs should be structured across all participating countries.² When you send money today, the IBAN lets the payment system check both accounts before the transfer goes through, so errors can be caught before they cause problems.

What is the format for an IBAN?

An IBAN can be up to 34 characters long and includes both letters and numbers. The exact length depends on which country your account is in. A UK IBAN has 22 characters, while a French one has 27. Even with those differences, every IBAN follows the same basic structure, which makes it easy for banks to read and validate.

IBAN structure and components

Every IBAN is made up of five parts:

• Country code: A two-letter code identifying the country where the account is held (e.g., GB for the United Kingdom).

• Check digits: Two numbers that let the sending bank verify the IBAN is correctly formatted.

• Bank identifier code: A code identifying the bank or financial institution.

• Branch code: Also known as a sort code, this identifies the specific branch.

• Account number: The unique number for the individual bank account.

The bank identifier, branch code, and account number together make up the Basic Bank Account Number (BBAN). That's the part that identifies your specific account when you make an international transfer.

IBAN length, structure and examples

Here are some examples of IBAN lengths and structures across different countries:

How to find your IBAN number

• Bank statements: Your IBAN is usually printed near your account details.

• Online banking or mobile app: Check your account settings or account details section.

• Contact your bank: Customer service can give you your IBAN directly.

• IBAN calculator: If you know your bank and account details, online tools can generate your IBAN for you.

Does Australia have IBAN numbers?

No. Australian bank accounts don't use IBANs. If you're banking domestically in Australia, you won't have one. Instead, you'd provide a BSB (Bank State Branch) number and account number for domestic transfers, plus a SWIFT/BIC code for international transfers. The US, China, and New Zealand also don't use IBANs.

Using an IBAN calculator

If you know your country, bank, and account number, you can use an online IBAN calculator to generate your IBAN. These tools can also validate an IBAN you've received, checking whether it's correctly formatted before you send any money. That leads to an important point: how to make sure an IBAN is valid before you transfer funds.

How to check and validate an IBAN

Before you send money internationally, it's worth validating the recipient's IBAN to make sure it's correctly formatted and belongs to a real account. The check digits, which are in positions three and four in every IBAN, work a bit like the last digit on a credit card number. They're calculated using a formula that catches typos before the payment even leaves your account.

Banks do this validation automatically, but you can also use online IBAN checkers to verify an IBAN yourself. These tools confirm whether the format is correct and whether the bank code matches a real institution. It's a simple step, and it can save you the hassle of a failed or misdirected transfer.

What happens if you enter the wrong IBAN?

Entering the wrong IBAN can lead to different outcomes, depending on the nature of the error.

If you entered an IBAN that doesn't exist, the transfer will be rejected. You can try again with the correct information.

If you entered an IBAN that belongs to an active account, the transfer might still be processed even if the recipient's name doesn't match. Because the IBAN identified a valid account for the transfer, it tells the bank that this transaction can go through. It can be hard to reverse that kind of transfer, and you might need the recipient's help. If the recipient doesn't cooperate or can't be reached, you might not be able to get your money back.

Always double-check the IBAN before you confirm any international transfer. If you're unsure, verify the information first with the recipient or your bank, or use an IBAN validation tool to catch errors before they become problems.

IBAN vs SWIFT/BIC codes: What’s the difference?

Here's the key difference: an IBAN identifies your specific bank account, while a SWIFT/BIC code identifies the bank itself. For most international transfers, you'll need both. The SWIFT code tells the payment system which bank to send the money to, and the IBAN tells it exactly which account within that bank it should go to.

IBAN vs SWIFT code

IBAN vs BSB and routing numbers

A BSB (Bank State Branch) number is Australia's equivalent of a bank and branch identifier, and it's used alongside an account number for domestic transfers. A routing number does the same job in the US. Neither one is an IBAN. If you're sending money to someone in a country that uses IBANs, you'll need their IBAN. If they're in Australia or the US, you'll need their BSB or routing number and account number instead.

Which countries use IBANs?

The IBAN system is currently used by 89 countries worldwide.¹ It's most common in Europe. All EU and EEA countries use IBANs, and so does the UK. But you'll also see IBANs in parts of the Middle East, including the UAE, Saudi Arabia, and Israel, as well as North Africa and the Caribbean.

You can see a full list of participating countries in the IBAN registry, which is published by SWIFT.¹

Countries that don't use IBANs

Several major economies don't use the IBAN system. Here's what they use instead:

• Australia: BSB + account number

• United States: Routing number + account number

• Canada: Transit number + institution number + account number

• China: Bank code + account number

• New Zealand: Bank code + branch code + account number

IBANs and SEPA payments

Within Europe, the Single Euro Payments Area (SEPA) uses IBANs to process euro transfers across 41 participating countries³. If you're making a SEPA payment, you'll need to provide your IBAN. Since February 2016, SWIFT/BIC codes are no longer required for SEPA transfers, and IBAN alone is sufficient. Not all banks in SEPA countries support every SEPA payment scheme, so check with your bank before making a SEPA payment.

Send and receive international payments with Airwallex

Traditional international wire transfers through the SWIFT network can be slow and expensive. Cross-border fees from intermediary banks add up, and unfavourable exchange rates eat into your margins. If you're regularly paying suppliers or getting paid by overseas customers, those costs can build up quickly.

With Airwallex, you can skip a lot of that complexity. Our Global Accounts let you open accounts with local banking details in 20+ countries, often in minutes. You can receive payments in the same currency your customers pay in, which helps you avoid unnecessary conversion fees. And when you need to send and receive payments globally, our FX & Transfers offering lets you move money to over 200 countries at transparent FX fees.

Our customers have saved up to 80% on FX fees, and roughly 90% of transfers arriving the same day, with around 45% clearing instantly. Learn more about how Global Accounts work and how they can simplify your international payments.

Frequently asked questions

Is it safe to share your IBAN?

Yes, it's safe to share your IBAN. An IBAN can only be used to send money to your account, not to take money out, so sharing it won't put your money at risk. The details you should keep private are your CVV, card expiry date, and the 16-digit number on your card. Those can be used to make payments from your account.

Is an IBAN the same as a SWIFT code?

No, they do different jobs. An IBAN identifies your specific bank account, while a SWIFT (or BIC) code identifies the bank itself. You'll often need both for an international transfer.

Is an IBAN the same as a BSB?

No, a BSB (Bank State Branch) is an Australian bank and branch identifier, not an IBAN. Australia doesn't use IBANs. For international transfers to Australia, you'd provide a BSB, account number, and SWIFT code.

How can I find out my IBAN number?

Check your bank statement, online banking app, or contact your bank directly. If your country uses IBANs, your IBAN is usually printed on your statement or visible in your app. You can also use an online IBAN calculator if you know your bank and account details.

Sources 

1. https://www.swift.com/standards/data-standards/iban-international-bank-account-number

2. https://www.iso.org/standard/81090.html

3. https://www.europeanpaymentscouncil.eu/about-sepa

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