What are Bank Identification Code (BIC code)? And how to use them

Key takeaways

• Over 11,500 banks and financial institutions are connected to the SWIFT network, which processes around 50 million messages a day.

• BIC and SWIFT codes are the same thing: an 8- or 11-character code used to route international payments under the ISO 9362 standard.

• Airwallex Business Account sends 94% of transfers over local payment rails, skipping the SWIFT correspondent system and the intermediary fees that come with it.

If you send international wire transfers regularly, you've been asked for a SWIFT or BIC code. Most cross-border payments require one, and getting a single character wrong can delay your transfer or get it rejected entirely.

This guide covers how these codes work, what a SWIFT transfer will actually run you, and which alternatives can cut costs for your business.

What is a Bank Identification Code (BIC code)?

A Business Identifier Code (BIC), also called a SWIFT code, is an 8- to 11-character code that acts as a bank's address on the global payment network. When you send a wire transfer, that code tells the network which institution and branch to route funds to. Use an invalid one and the payment can fail, bounce back, or pick up repair fees from banks along the way.

For businesses running global payroll, paying overseas vendors, or collecting from international customers, this is one detail you can't afford to get wrong.

Why SWIFT and BIC are both names for the same code

BIC is the code format, standardized by the International Organization for Standardization under ISO 9362. SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication, a member-owned cooperative founded in 1973 to build a secure global messaging network for banks. Since SWIFT is the official registration authority for these codes, the two names have become interchangeable.

SWIFT currently manages around 107,000 ISO-registered BICs. About 49,000 are live on the network for real-time messaging; the rest exist for offline reference and compliance screening.

Bank Identification Code (BIC code) vs. IBAN

A BIC points to the bank and branch. An IBAN (International Bank Account Number) points to the specific account at that bank. If you're paying suppliers in Europe or other regions where IBANs are required, you'll need both.

Here’s how the two identifiers compare:

 Getting either wrong usually means the payment is rejected, and both the sending and receiving banks often charge return or “repair” fees before sending the funds back.

BIC code format and structure

Every BIC follows a fixed structure. Understanding it helps your finance team catch errors before they cause delays.

How to read a BIC code

A BIC has four distinct parts:

8-digit vs. 11-digit BIC codes

An 8-character BIC routes to the bank’s primary clearing center. If a system requires 11 characters and you only have 8, append “XXX”, which signals the payment should go to the bank’s head office.

An 11-character code routes to a specific branch. If that branch has its own registered code, use it. Sending to the head office code when a branch code is required can add processing time on the receiving end.

How SWIFT transfers work and what they cost

How banks route international payments

When you initiate an international wire, your bank doesn’t physically move cash. It sends standardized payment instructions across the SWIFT network to the receiving bank. To settle the transaction, both institutions need an established relationship, typically maintained through Nostro and Vostro accounts. If no direct connection exists, one or more intermediary banks step in to bridge the gap. For a deeper look at how this process works end-to-end, see our guide to wire transfers.

Correspondent bank fees and the intermediary trap

Each intermediary bank in the payment chain can deduct a fee before passing the funds along, without disclosing the amount to you upfront. The recipient often ends up with less than you sent.

The SWIFT field 71A determines who absorbs these costs:

• OUR: You cover all fees, and the recipient gets the full amount.

• SHA: You pay your bank’s outgoing fee; the recipient absorbs all intermediary charges. This is the most common instruction but frequently results in shortfalls.

• BEN: All fees are deducted from the transfer amount; the recipient pays everything.

Intermediary fees typically run $15–$30 per bank, per transaction. Complex multi-hop routes can push that to $50 or more.

The true cost of a SWIFT wire transfer

The fee your bank quotes upfront rarely tells the full story. Here’s what a typical international wire actually costs:

 For high-volume international payments, those FX markups and intermediary fees compound quickly. Our breakdown of how to avoid wire transfer fees covers the most effective strategies for reducing this overhead.

Why SWIFT transfers take 3–5 business days

The network itself is not the bottleneck. 75% of payment messages reach the destination bank in under 10 minutes. The delays happen afterward. According to SWIFT’s Spotlight on Speed 2025 report, up to 80% of total transfer time is spent in the “last mile”: the gap between when the receiving bank gets the instructions and when it actually credits the account.

Four factors drive those delays:

• Regulatory reporting: Purpose-of-payment requirements for national balance-of-payment statistics that trigger manual review

• Currency controls: Some countries require central bank approval before funds are credited, which can add one to two business days to the timeline.

• Batch processing: A lot of banks still process back-office operations in batches rather than continuously, so payments can sit overnight or over the weekend before clearing.

• Manual compliance checks: Sanctions screening and financial crime controls that can’t be fully automated on lower-quality data

Where to find your bank’s BIC code

Your bank’s BIC is easy to locate through several reliable channels:

• Bank statements: Most paper and digital statements include the SWIFT code alongside routing numbers and account details

• Online banking: Usually listed under account details or international transfer settings in your bank’s portal or mobile app

• Bank website: Most major banks list their SWIFT code in a public FAQ or support page.

• SWIFT directory: The official ISO-approved SWIFT directory is searchable online, though checking directly with your recipient is the safer move.

Faster alternatives to SWIFT transfers

The range of international payment methods available today makes SWIFT far from your only option, and often not the best one.

Local payment rails: ACH, SEPA, and Faster Payments

Rather than routing through the SWIFT correspondent banking system, businesses can settle transactions through local domestic networks: ACH in the US, SEPA across Europe, and Faster Payments in the UK. These rails process payments as domestic transfers, often settling same-day or instantly, with no intermediary correspondent fees. Understanding the difference between ACH vs. wire transfers helps you choose the right mechanism for each payment corridor.

How multi-currency accounts bypass the SWIFT network

Multi-currency business accounts let you hold balances in multiple currencies on a single platform. No need to open separate bank accounts in every market. Each currency comes with local bank details, so overseas clients can pay using their domestic rails. The payment never touches the SWIFT network, which means no intermediary deductions and no forced FX conversion on either side.

How businesses use Airwallex for international payments

Airwallex provides a global payments infrastructure designed to avoid the friction and cost of traditional SWIFT routing. It’s an end-to-end financial operating system for companies that receive, hold, and pay out funds internationally.

How Airwallex routes payments across local and SWIFT networks

Airwallex combines 60+ banking licenses with a proprietary global network to route 94% of transfers through local payment rails. That means the vast majority of payments bypass the correspondent banking system entirely. Around 93% of transactions arrive within hours or on the same day, with roughly 50% settling instantly. For corridors where SWIFT is unavoidable, Airwallex supports traditional routing, with upfront, transparent pricing, so unexpected deductions aren’t a problem.

How Airwallex collects and sends in multiple currencies without SWIFT fees

With an Airwallex Business Account, you can open Global Accounts to hold and receive payments in 20+ currencies. Each Global Account comes with local bank details, so international clients pay through their domestic rails, with no SWIFT fees, no forced FX conversion. On the send side, you get access to interbank FX rates, with businesses typically saving up to 80% compared to traditional bank rates. That margin difference matters at scale.

Frequently asked questions about Bank Identification Code (BIC code)

Is a BIC the same as a SWIFT code?

Yes, BIC is the code format, standardized under ISO 9362. SWIFT is the global network that registers and routes payments using those codes. Both terms point to the same thing.

How is a SWIFT code different from a routing number or sort code?

A SWIFT code works globally and is used for cross-border payments. Routing numbers (US) and sort codes (UK) are domestic identifiers that only work within their own country's banking system. Use a SWIFT code for international wires, and a routing number or sort code for transfers within a single country.

How do I find my bank’s SWIFT/BIC code?

Look at your bank statement, your online banking account details, or your bank's website. You can also search the official SWIFT directory, but going directly to your recipient is the most reliable way to get the code right.

What happens if I use the wrong SWIFT/BIC code?

The transfer may be delayed while banks investigate the discrepancy, or returned entirely. Either outcome usually comes with fees; both the sending and receiving banks typically deduct return or repair charges from the principal before sending it back.

Do all banks have a SWIFT code?

No, smaller regional banks, credit unions, and institutions that don’t handle international transactions often lack a registered BIC or active SWIFT connection. If your recipient’s bank doesn’t have one, you’ll need to route the payment through a correspondent bank that does.

Do I need a SWIFT code for SEPA transfers?

Generally, no. SEPA transfers rely on the recipient’s IBAN to route payments within the Single Euro Payments Area, bypassing the need for a SWIFT code and the correspondent fees that come with it.

Sources

1. https://www.swift.com/news-events/news/year-shared-progress-5-highlights-2025 

2. https://www.swift.com/sites/default/files/files/swift-spotlight-on-speed_september-2025.pdf 

3. https://help.bill.com/direct/s/article/000003618 

4. https://wise.com/us/blog/international-wire-transfer-fees 

5. https://razorpay.com/blog/bic-code-explained