The information on or through this site is provided for general informational purposes only and should not be relied on as a substitute for specific advice about laws, regulations, taxes, finances, immigration or travel. For specific advice, contact a licensed attorney, financial advisor or other professional. We disclaim all liability and responsibility arising from any reliance placed on this site. We do not warrant the accuracy or usefulness of this information. This site may contain links to other sites and information provided by third parties for your convenience. We do not endorse nor make any guarantees with respect to these sites, their accessibility, the information they contain or the way they treat any information you provide to them.

How do international remittances, or cross-border money transfers, help promote financial inclusion? Improve your financial literacy by learning about budgeting and saving, personal finance.    

Learn how to send money using Ria Money Transfer, new services we offer, our omnichannel services, tips for sending money and the expansion of our network.    

Learn how international migration trends affect remittances and the impact remittances have on the individuals and communities around the world who receive them.     

Videos that feature Ria customers explaining in their own words how their experience of migration has impacted themselves, their families and their communities.     

Learn about different cultures around the world, how people celebrate, what it is like to live abroad and great travel destinations.     

What's new in cross-border payments, tech and finance? Learn about new payments methods like mobile wallets, the importance of the omnichannel experience and workplace trends.

What is Ria doing for the community? What does CSR, corporate social responsibility, mean? What's new in sponsorships at Ria?    

The Ria Blog

We use our own and third-party cookies to analyze our services and to show you advertising related to your preferences based on your browsing habits. Learn more by reading our 

We use first and third-party cookies to help us understand how you interact with the site by collecting and reporting information, such as the number of visitors or clicks. They do not allow us to collect your activity data beyond our site.

🍪 Cookies give you a personalized  experience

We use our own and third-party cookies to analyze our services and to show you advertising related to your preferences based on your browsing habits. Learn more by reading our

These cookies are essential to the basic functioning of our website. They turn on functions like page navigation, authentication, and access to secure areas.


<p>If you have ever sent or received money internationally, you may have come across terms like SWIFT vs. IBAN codes. These codes help identify banks and bank accounts across different countries and regions. Banks use them to ensure international wire transfers reach their recipients securely and efficiently. But what exactly are these codes, and how do they differ?</p>



<h2 class="wp-block-heading">Understanding SWIFT codes </h2>



<p>SWIFT stands for&nbsp;<a href="https://www.swift.com/homepage" target="_blank" rel="noreferrer noopener">Society for Worldwide Interbank Financial Telecommunication</a>, an organization that has developed a standardized system to identify financial institutions worldwide. The SWIFT code, also called the Bank Identifier Code (BIC), is an exclusive alphanumeric sequence used to identify specific banks. Each bank in the SWIFT network has its unique SWIFT code.&nbsp;</p>



<p>So, if you want to transfer funds to someone&#8217;s bank account in another country or vice versa, you must find the SWIFT code for your recipient&#8217;s bank. This code helps your bank ensure your funds are routed accurately to the receiver&#8217;s bank, and without it, your transfer could encounter delays or perhaps never arrive.</p>



<h2 class="wp-block-heading">Understanding IBAN codes</h2>



<p>Like SWIFT, the&nbsp;<a href="https://www.iban.com/" target="_blank" rel="noreferrer noopener">International Bank Account Number (IBAN)</a>&nbsp;is a code for international money transfers. However, unlike the SWIFT code, which identifies the bank, the IBAN code identifies the specific bank account of an individual or business. As such, it&#8217;s a longer alphanumeric code that includes the country code, bank code, branch code, and the actual account number.</p>



<p>The IBAN system has been adopted primarily within the European Union (EU), but it has also reached other countries. So, if you&#8217;re sending funds to someone in Europe or a bank that uses the system, you will be asked to provide the IBAN code of your recipient to ensure the funds reach the correct account.</p>



<p>Need help validating an IBAN or checking formatting? Ria Money Transfer&#8217;s <a href="https://www.riamoneytransfer.com/ibancalculator/" target="_blank" rel="noreferrer noopener">IBAN Calculator</a> lets you input an IBAN to verify if it&#8217;s formatted correctly, or search by country to see an example.</p>



<h2 class="wp-block-heading">When to use SWIFT vs. IBAN codes</h2>



<p>In general, you will need to use a SWIFT code when sending money to a bank outside of the EU and an IBAN number when transferring funds to a bank within the EU. But that is not always the case. Some banks in Asia, Africa, the Middle East, and the United States also use IBAN codes. Other banks have both SWIFT and IBAN codes, so they accept either one.</p>



<p>So, the simple answer to when to use SWIFT vs. IBAN codes is whatever the recipient bank uses.</p>



<h2 class="wp-block-heading">Another solution</h2>



<p>SWIFT and IBAN codes have been used for decades for international money transfers. However, there are some drawbacks.&nbsp;</p>



<p>Before sending money, you need to ask your recipient for their bank&#8217;s code — which is not something many people have on hand. You might also run into issues with a transfer if your recipient doesn&#8217;t have a bank account or doesn&#8217;t want to receive money that way.</p>



<p>While it has nothing to do with the codes specifically, you should also consider the high costs of relying on banks for international money transfers. These fees vary depending on the amount, intermediary bank, and exchange rate.&nbsp;</p>



<p>Thankfully, there&#8217;s another alternative: international money transfer services. Instead of requiring SWIFT vs. IBAN codes, they just need the basic recipient information, which makes transferring funds much simpler and faster. </p>



<p>You also have several ways of sending money: via debit or credit card, cash, or bank account. Another advantage is the low fees. International money transfer services offer competitive exchange rates, transparent pricing, and minimal fees, which often makes them a more affordable alternative to international wire transfers.</p>



<h2 class="wp-block-heading">Skip the codes with Ria Money Transfer</h2>



<p>Ria Money Transfer is a leading global money transfer company that offers fast, secure, and affordable services to over 160 countries. You can choose from various delivery options, such as cash pickup at any of its&nbsp;<a href="https://www.riamoneytransfer.com/en-us/locations/" target="_blank" rel="noreferrer noopener">authorized locations</a>, bank deposit, mobile wallet, or even home delivery for select countries.</p>



<p><a href="https://www.riamoneytransfer.com/en-us/" target="_blank" rel="noreferrer noopener">Send money now</a>&nbsp;using Ria Money Transfer for an accessible, efficient, and cost-effective way to remit money worldwide.</p>


SWIFT vs. IBAN Code: What’s the Difference?

About the author

Lisa Hong

Related posts

8 reasons to use a digital wallet when traveling

Credit Card, Debit, or Cash: Which is Best for Traveling?

The 5 Best US Banks for Migrants, Expats & Non-residents

What is Financial Wellness and why is it important?