The BIC/SWIFT code continues to raise questions whenever transfers, bank forms or account data requests arise. In essence, it is an identifier for the banking institution, while the IBAN identifies the customer’s account, which helps to understand why the two codes do not have the same function.
According to , the Business Identifier Code, known as BIC, is an identification code for institutions assigned by the global financial organization SWIFT. SWIFT itself explains that BIC is an international ISO 9362 standard used to identify entities and route financial operations and messages.
The BdP also states that the BIC can have up to 11 characters. SWIFT adds that this code is used to address messages, route transactions and identify entities in the international financial system.
Difference compared to IBAN
The IBAN is not used to identify the bank, but the payment account. In the official FAQs, the BdP explains that the IBAN is a standardized structure that allows you to identify and validate a payment account in the Single Euro Payments Area, SEPA.
This means that BIC and IBAN are not equivalent. The first points to the institution, while the second points to the payer’s or beneficiary’s account.
When is it really necessary
The BdP states that, to carry out a payment transaction, the customer only needs to indicate the IBANs of the payer’s and beneficiary’s accounts. The Bank Customer Portal, also from the same entity, adds that payment service providers cannot require users to provide BIC in credit transfers and direct debits covered by these rules.
At the same time, it recalls that SEPA covers not only European Union Member States, but also other countries and territories. This shows that the correct explanation does not depend only on the expression “euro zone”, but on the concrete framing of the operation within the SEPA rules.
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