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What is an IBAN number?
An IBAN is a standard way to identify international bank accounts so that you can send or receive payments easily.
January 19, 2023 — 4 min read
IBAN is an acronym that stands for International Bank Account Number, which helps to identify an overseas bank account within a standardized international numbering system.
An IBAN consists of a two-digit country code, two additional identifying digits, followed by several more (up to 30, so 34 in total) alphanumerical characters.
It's important to note that an IBAN format works alongside the original basic bank account number in order to send or receive international payments or overseas money transfers.
The IBAN was first adopted by the European Committee for Banking Standards (ECBS) to help with the facilitation of international payments being made within the European Union. Since then most European countries have adopted its implementation as well as numerous countries in the Middle East and throughout the Caribbean as well.
Today, more than 75 countries around the world utilize the IBAN system. In addition to helping facilitate international money transfers, the IBAN also acts as a measure of security by ensuring that transaction details are verified before the transaction can be completed.
IBANs are necessary when attempting to complete an interbank transfer or money wire across international boundaries. While some major countries like the United States of America and Canada do not utilize the IBAN system, they still recognize the system as legitimate and process payments accordingly.
An IBAN calculator can help individuals validate an IBAN or find an IBAN based on the country, bank code, and account number. But since the United States is not an IBAN country, you wouldn’t encounter something like a Bank of America IBAN number, for instance. But for other countries that utilize the IBAN system, calculators can help you figure out the proper code to transfer money internationally and ensure that it reaches its destination securely.
The Difference Between IBAN and SWIFT
IBANs are not the only internationally recognized standards of bank account identification – there is also the SWIFT system or network.
SWIFT stands for ‘Society for Worldwide Interbank Financial Telecommunication’ which was founded in the 1970s to help create a more ambitious and robust international financial marketplace.
Like IBAN calculators, there are online resources to help individuals find SWIFT codes as well. Additionally, some financial institutions may refer to the number as a BIC (or a Bank Identifier Code) which is virtually identical to a SWIFT code for the purposes of a money transfer.
What is Xe?
There are countless online services that claim to provide quick and affordable money transfers across international standard borders. Xe is one of the world’s leading money transfer and currency exchange services available on the market.
Users can download the Xe app by visiting the iOS App Store or Google Play. The Xe app has been downloaded more than 70 million times worldwide. Once a user has downloaded the application and set up their account details by verifying their email address, they can send money or exchanging currency right away.
Who Could Benefit from Xe?
Xe can be an ideal solution for migrant workers or other individuals working abroad to support families or loved ones back home.
Xe can also be beneficial for frequent international travelers who may also need to exchange currencies more frequently. Financial services and exchange kiosks at airports and other international travel hubs often charge outrageous fees for the convenience of their services. These services may be convenient, but being able to rely on a digital service can provide much greater ease and peace of mind while traveling.
If you have multiple bank accounts in different countries, Xe can help you stay on top of your financial endeavors by facilitating quick transfers with little or no added fees.
One of the attributes that can make money transfer services less attractive to users is the amount of hidden fees included in transfers, transactions, and currency exchanges.
Xe can potentially benefit anyone who needs to transfer money internationally or exchange currencies, and the platform has a variety of other helpful tools for users including:
Travel expenses calculator
Email updates about currency exchange rates
Historical currency exchange rate data
Before transferring money, make sure you have all the necessary codes and numbers. An IBAN calculator can help with this process and make it go quickly and smoothly.
The content within this blog post is not intended for use as financial advice. This content is for informational purposes only.