Global HR Glossary

What is an IBAN Number? 

An IBAN (International Bank Account Number) is a standardized international code designed to identify bank accounts across national borders. Developed by the European Committee for Banking Standards and adopted by over 70 countries, the IBAN facilitates the processing of cross-border payments with reduced risk of transcription errors.

Structure and Usage 

The IBAN is comprised of up to 34 alphanumeric characters, beginning with a two-letter country code, followed by two check digits, and a lengthy and detailed bank account number that includes the bank identifier. This structured format enhances the speed, accuracy, and efficiency of payment processing systems by allowing banks to verify the validity of individual accounts at the international level.

Benefits for Users 

For consumers and businesses alike, using an IBAN can significantly simplify international transactions by ensuring that payments are directed swiftly and accurately to the correct accounts. It reduces transaction fees by decreasing the need for intermediary banks and minimizes the potential for payment errors. Your IBAN can be found on your bank statements or accessed through your online banking system. It is crucial for international traders, travelers, or anyone making or receiving payments from abroad to use their IBAN.