What is a SWIFT or BIC code? How do they work?

Key takeaways

• A SWIFT code, also known as a BIC, is an 8–11-character code that identifies the bank receiving an international payment. It is different from Hong Kong’s bank codes.

• Cross-border payments may also require an International Bank Account Number (IBAN) in Europe, a sort code in the UK, or a routing number in the US, depending on the destination.

• Airwallex Business Account uses local payment rails to send funds globally, helping businesses avoid some of the delays and fees associated with traditional SWIFT transfers. Most payments arrive on the same day.

When you make an international payment to an overseas supplier or send funds abroad, you will need a SWIFT code. This 8–11-character code helps route money to the correct receiving bank. SWIFT code and BIC code are interchangeable names for the same system.

This guide explains the SWIFT code format, where to find a SWIFT code, and how to use one for cross-border payments. It also covers alternatives to traditional SWIFT payments that may help you save time and money.

What is a SWIFT code?

A SWIFT code is a bank identification code used for international money transfers. SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication, a secure network that connects financial institutions through a standardised messaging system.

SWIFT code vs BIC code: What is the difference?

BIC, which stands for Bank Identifier Code, refer to the same set of characters as a SWIFT code. SWIFT is the name of the network, while BIC is the official term used by the International Organization for Standardization (ISO). You can enter the same code when a form asks for either a SWIFT code or a BIC.

Is a SWIFT code the same as a Hong Kong bank code?

Local payments in Hong Kong use three-digit bank codes, such as 004 for HSBC or 012 for Bank of China. These codes are used for domestic payment methods, such as the Faster Payment System (FPS). International payments require a SWIFT code.

When do you need to use a SWIFT code?

You need a SWIFT code for a cross-border wire transfer when you send money from Hong Kong to an overseas bank account or receive funds from abroad. Common business use cases include:

• Paying overseas suppliers: Settling invoices with suppliers in mainland China, Europe, or the US may require the supplier’s bank SWIFT code.

• Receiving international payments: Overseas clients or partners may need your bank’s SWIFT code to send funds to your Hong Kong account.

• Transferring money abroad: Transfers to a bank account outside Hong Kong, individual or business, generally require a SWIFT code.

SWIFT code format

Every SWIFT code follows a standard structure of 8 to 11 characters, divided into four parts:

1. Bank code (four letters): Identifies the banking institution

2. Country code (two letters): Identifies the region where the bank is based, such as HK for Hong Kong

3. Location code (two characters): Identifies the bank’s city or region

4. Branch code (three characters): Optional characters that identify a specific branch. Head offices usually use “XXX”, or can be omitted

SWIFT code format example

Using HSBC in Hong Kong as an example, the SWIFT code HSBCHKHH breaks down as follows:

• HSBC: Bank code

• HK: Country code for Hong Kong

• HH: Location code

This eight-character code does not include a branch code, so it identifies HSBC’s head office.

8 or 11 characters?

An eight-character SWIFT code is usually enough to identify a bank’s head office. You need the full 11-character version only when the recipient specifically requests a branch-specific code.

How to find a SWIFT code

Confirm the recipient bank’s SWIFT code before you start an international payment. You can usually find it in:

1. The bank’s official website: Look under “Contact us”, “International payments”, or “Remittance information”.

2. A bank statement: Many banks print their SWIFT code on paper or digital statements.

3. Contact customer support: Call the bank or visit a branch to request the correct code.

Double-check the details with your bank before sending a payment. An incorrect SWIFT code can delay the payment, cause it to be returned, or result in additional bank fees.

SWIFT codes for major banks in Hong Kong

Bank codes for major banks in Hong Kong

Do you need other payment details alongside a SWIFT code?

Depending on the recipient’s region, you may need additional routing details alongside a SWIFT code to complete an international payment.

• An International Bank Account Number (IBAN) is used mainly for payments to European countries. An IBAN can contain up to 34 alphanumeric characters, and identifies a specific bank account rather than only the receiving institution. Payments to European suppliers from Hong Kong generally require both a SWIFT code and an IBAN.

• A sort code is a six-digit number used to process domestic bank transfers and clear payments in the UK. If you pay a British supplier, you may need to provide a sort code alongside the SWIFT code.

• A Fedwire routing number (ABA number), is a nine-digit code used within the US financial system. Issued by the Federal Reserve, it identifies domestic financial institutions for local and international wire payments.

How to make a bank transfer using a SWIFT code

Banks use the SWIFT network to send payment instructions between institutions, because banks in different regions do not always have direct connections. To start a wire transfer:

• Gather the recipient’s details: Collect the beneficiary’s name, bank name, SWIFT code, and account number or IBAN.

• Identify local routing codes: Check whether the destination region requires a Fedwire routing number in the US, or a sort code in the UK.

• Choose the fee option: Select SHA, where fees are shared; OUR, where the sender pays all fees; or BEN, where the recipient pays all fees.

Limitations of a SWIFT transfer

Traditional telegraphic transfers that use SWIFT codes can involve the following limitations:

1. Long processing times

Traditional international bank transfers can take one to five business days to clear. Time differences between intermediary banks can cause further delays, disrupting cash flow, or putting pressure on supplier relationships.

2. High transaction fees

Banks may charge a fixed fee for each payment, with branch payments often costing more than online payments. When a payment passes through intermediary banks, additional processing fees can increase the total cost.

3. Unfavourable exchange rates

Bank exchange rates typically include a markup above the mid-market rate. When you convert currencies, these costs can add up quickly, particularly across a high volume of payments.

A faster alternative to SWIFT: Airwallex Business Account

If you want to reduce transfer delays, fees, and exchange rate markups, Airwallex Business Account gives you an alternative to manage international payments.

You can send funds in more than 90 currencies across 200+ countries and regions. Airwallex processes more than 94% of transactions through local rails instead of SWIFT, and 93% of payments arrive on the same day. Businesses can access rates as low as 0.2% above interbank rates to lower cross-border payment costs.

Our Global Accounts also let businesses open local currency accounts in 20 countries, so they can collect payments from clients like a local business. Collecting, managing and paying in the same currency can help avoid forced foreign exchange conversions and unnecessary transaction fees.

Frequently asked questions

Do transfers from overseas to Hong Kong require a SWIFT code?

Yes. A payment sent from abroad to a Hong Kong bank account generally requires the receiving bank’s SWIFT code to route the funds correctly.

How do I find my bank’s SWIFT code?

You can find your bank’s SWIFT code on its official website, in its online banking portal, or on a bank statement. You can also contact customer support directly.

What is the difference between a SWIFT code and an IBAN?

A SWIFT code identifies a bank or financial institution internationally. An IBAN identifies a specific bank account.

What happens if I enter the wrong SWIFT code?

The payment may fail or be returned. The bank may also deduct administrative or cable fees. Refunds can take several weeks, so always check the payment details before sending funds.

Sources:

Information was sourced as of October 2026 for reference purposes. For the latest details, please visit each provider’s official website.

1. https://www.swift.com/standards/data-standards/bic-business-identifier-code

2. https://www.wfsfaa.gov.hk/sfo/pdf/common/Form/fasp/Bank_Code_List_C.pdf

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

4. https://www.frbservices.org/resources/routing-number-directory/index.html

Disclaimer: This article was prepared in October 2026 based on voluntary online research and publicly available information. We have not personally tested every tool or provider mentioned. This article is for educational purposes only, and readers should independently evaluate each service provider based on their specific business requirements. Content is updated every six months. To request an update, please contact us at [email protected].