SWIFT vs. BIC: Is There a Difference?

SWIFT connects more than 4,000,000,000 accounts in over 200 countries. Besides, more than 11,000 institutions all around the world use BIC codes. What does it tell us?

In short, SWIFT is everywhere and BIC is used globally. But, is there more to these abbreviations than numbers? Do SWIFT and BIC mean the same thing?

In this piece, we try to give you a short answer.

Understanding BIC and SWIFT Codes

When sending or receiving money internationally, banks need to know exactly where the funds should go. This is where BIC/SWIFT codes come into play.?

Bank Identifier Code (BIC) and Society for Worldwide Interbank Financial Telecommunication (SWIFT) codes are the same and are regulated by the ISO 9362 standard. They consist of 8 or 11 characters that identify the bank, country, location, and sometimes the branch. Please visit this article for more illustrative examples of SWIFT and BIC.

Finding Your BIC Code

To find your BIC code, check your bank statement, use an online BIC/SWIFT code finder, or contact your bank directly. You need SWIFT/BIC codes when sending or receiving money internationally, as they identify the involved banks and ensure the money reaches the correct destination. These codes are used for transactions such as sending money abroad, buying goods or services internationally, and receiving payments from foreign clients.

Drawbacks of Using SWIFT/BIC Codes

While BIC/SWIFT codes are crucial for international transactions, they come with some drawbacks:

• High Fees. Banks may charge for sending or receiving money via SWIFT/BIC codes, with fees varying based on transfer amount, currency, and destination.
• Poor Exchange Rates. Banks may add a markup to the mid-market rate, leading to less favorable exchange rates.
• Slow Delivery. Transfers can take several days, which can be inconvenient for urgent transactions.

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