BIC number
Also known as: SWIFT address
A BIC number is a series of numbers and letters used to identify banks when using international payment transfers. Through the use of BIC numbers, international payment transfers reach the correct bank. The letters BIC therefore stand for the term: Business Identifier Code. In the past, the term SWIFT code was used for this. This is why the BIC number is also known as the SWIFT address.
A BIC number is created in a unified manner. The number begins with a bank code followed by a country code (e.g. NL). This is followed by a city code and possibly a branch number. A branch number is not used in the Netherlands. The BIC number was initiated by the International Organization for Standardization to make international payment transactions smoother.
Difference between BIC number and IBAN number
The BIC number should not be confused with an IBAN number. The International Bank Account Number (IBAN) identifies each account holder, including bank and country of residence. The use of the unique IBAN numbers allows banks to process the payment completely automatically, without additional information. The major difference between a BIC number and an IBAN number is that the latter is completely unique and linked to a specific account. A BIC number is a more general number.
