What Is A Bic/Swift Code?


BICSWIFT codes are essential terminology you should be acquainted with if you are sending or receiving cross-border payments.

To put it simply, BIC và SWIFT codes are unique codes that identify each and every ngân hàng for the purpose of international payments.

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Knowing where khổng lồ find & how to lớn use a SWIFT/BIC is indispensable và will prevent you from making costly mistakes.

Typically, sending money abroad with the wrong BIC/SWIFT will cause your funds lớn be lost somewhere in the international banking network, và getting your hands baông xã on them could take anywhere between a few days to lớn several weeks.

Below you will find everything you need to lớn know about SWIFT/BIC codes.

You can also watch our Clip that explains BIC và SWIFT codes in 2 minutes:

What is a SWIFT code?

Let’s begin by getting a bit of background information.

SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication.

An organization phối up in 1973, whose purpose is lớn enable banks and other financial institutions to lớn process international payments securely between themselves.

The SWIFT network has more than 10,000 members located in 212 countries, making it the largest international payment network worldwide.

Members of the SWIFT network use SWIFT codes to lớn move sầu money securely between accounts that are located in different countries.

Each SWIFT code consists of standardized information your ngân hàng needs khổng lồ make sure that your money reaches the ngân hàng account of your beneficiary safely.

A good analogy to lớn underst& the utility of SWIFT codes is lớn think of zip/postal code in an address.

If this international postal code is incorrect or missing, any letter sent lớn this address will never arrive sầu.

The same thing applies if your money is transferred using the wrong SWIFT code.

What does a SWIFT code look like?

SWIFT codes may be constituted of only a few letters & numbers, but they tell banks within the SWIFT network everything they need to lớn know lớn exexinh đẹp international payments correctly.

These codes all follow the same format, they are 8 or 11 characters long.

As demonstrated here, we used different colors to lớn define the combination of letters within a SWIFT code:


AAAA – 4-character bank code that looks like a shortened version of the bank’s name.BB – 2-character country code specifying the bank's country.CC – 2-character location code expressing where the bank’s head office is located.

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DDD – 3-character branch code (optional) representing the branch code are an optional addition that can supplement the main 8-character SWIFT.

Your transfer will be directed & channeled through the relevant bank’s head office if you leave the branch code off.


In this example, we can see our own luyenkimmau.com.vn SWIFT/BIC Code: STYSHKHH

What is a BIC code?

A BIC code is exactly the same as SWIFT code.

Using the term SWIFT code is actually somewhat inaccurate as what we Call a SWIFT code is, in reality, a BIC code.

Again, let’s have a look at some background information that will help us better understvà why BIC and SWIFT are the same things.

When the SWIFT network was established, their members determined it was necessary to lớn identify each of them in a standardized manner to facilitate international payments.

And to lớn achieve sầu that goal, they created the Bank Identifier Code, which is most commonly known as its abbreviated form “BIC”.

So essentially, SWIFT, the organization, technically appoints a BIC to each bank thành viên of the SWIFT network

As the SWIFT network has kept on growing, their invention, i.e. the BIC, eventually gets referred to lớn by the name of the organization, i.e. SWIFT.

The same way Kleenex, Escalator, and Thermos were originally the name of companies và have become generic terms lớn refer lớn the products they invented.

So, don’t get confused by BIC and SWIFT as they mean the same thing and can be used interchangeably.

In many cases, you will see the same code referred khổng lồ as BIC, SWIFT, BIC/SWIFT code, SWIFT/BIC code, or SWIFT ID.

For more information about the BIC code, refer lớn this guide provided by SWIFT.

Where can you find BIC và SWIFT codes?

To make things easy, banks include your BIC/SWIFT code on your trương mục statements, both online & offline.

If you are searching for a SWIFT code to lớn send money to someone else, the simplest way to retrieve their SWIFT code is by using an online SWIFT/BIC tool.

Put in details such as the country, bank, and location, và then the online SWIFT code tool will identify the correct one for you.

To be 100% safe, triple-kiểm tra the code you have found with the recipient.

You can use one of these trustworthy SWIFT/BIC tools to lớn bởi your search:

When bởi you use a BIC/SWIFT code?

You will need a SWIFT/BIC code each time you receive or make a cross-border payment khổng lồ ensure the funds will reach their destination safely & timely.

So, you should keep the SWIFT/BIC code of your bank account handy so you may give it, with other bank account details, to the persons you are expecting payment from.

Vice versa, you should always ask your recipients to provide their SWIFT/BIC code before you instruct payment khổng lồ them.

Keep in mind that fees and exchange rates will apply lớn any transfers made using the SWIFT/BIC network.

One of the drawbacks of using this system is that it is often difficult to lớn know exactly what these costs are at the time you place the transfer.

Using luyenkimmau.com.vn for your overseas payment will give you full transparency on applicable fees and exchange rates & can get you savings compared khổng lồ your usual bank.

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Before making an international transfer, kiểm tra our international payment guide for more details as you may need additional ngân hàng codes for some countries.