How businesses accept crypto payments and settle to fiat safely.
Table of contents
- IBAN format explained
- IBAN vs SWIFT/BIC: who identifies what
- SEPA IBAN: euro rails for European business
- SEPA IBAN use cases
- Multi currency IBAN: one account, many markets
- How to use IBAN in daily operations
- IBAN validation and error-handling
- IBAN money transfer: speed, cost, and limits
- Dedicated IBAN vs pooled accounts
- Risk & compliance checklist for IBAN payments
- Payment rails and IBAN usage
- FAQ
International transfers can feel complicated, yet most of the friction disappears once you understand the account identifier at the center of cross-border banking: the IBAN. In plain language, what is an IBAN is a standardized international bank account number that helps banks route money to the right account across countries with fewer errors and returns. It is different from a bank’s SWIFT/BIC code, which identifies the institution; the IBAN points to the specific account.
For businesses, the pay-off is practical: accurate details mean fewer rejects, faster cash application, and cleaner reconciliation. Whether you invoice in Europe, pay overseas suppliers, or run subscriptions, IBAN payments simplify day-to-day operations and make cross-border finance feel closer to domestic banking.
IBAN format explained
An IBAN has three building blocks: a two-letter country code, two check digits, and the BBAN (Basic Bank Account Number) that encodes bank, branch, and account. The maximum length is 34 characters, but each country sets its own format and length.
Where to find yours? Look in online banking, recent statements, or request it from your bank or provider. Accuracy matters: check digits catch many typos, yet a formally “valid” but incorrect string could still reference someone else’s account.
IBAN vs SWIFT/BIC: who identifies what
Think of them as a pair: IBAN identifies the account, SWIFT/BIC identifies the bank. Many cross-border payments outside Europe require both. Inside the SEPA area, an IBAN alone is often enough for euro credit transfers.
SEPA IBAN: euro rails for European business
The SEPA IBAN routes payments over the Single Euro Payments Area schemes: SEPA Credit Transfer (SCT), SEPA Direct Debit (SDD), and SEPA Instant. For EUR inside the zone, IBAN payments are generally faster and cheaper than traditional international wires.
SEPA IBAN use cases
- Recurring B2B invoices and settlement schedules
- Direct debit for subscriptions and utilities under SDD mandates
- IBAN money transfer within the EU for marketplaces and export payouts
Multi currency IBAN: one account, many markets
A multi currency IBAN lets you receive multiple currencies into a single account construct, sometimes alongside local account details. This helps consolidate receivables, reduce the number of bank accounts per country, and speed up reconciliation.
How to use IBAN in daily operations
- Receive payments: share company name, IBAN, and when needed SWIFT/BIC.
- Send payments: enter the recipient’s IBAN, validate the format, and add references.
- Payroll & recurring runs: build batch files carefully and monitor rejects.
- Reconciliation: map transfers to references and flag exceptions.
- Security: restrict changes to beneficiary data and log all edits.
IBAN validation and error-handling
Validate before sending. If the format is wrong or the account does not exist, the bank should reject the payment. If the IBAN is valid but incorrect, request a recall immediately and notify the counterparty.
IBAN money transfer: speed, cost, and limits
Timing depends on the rail. Inside SEPA, standard credit transfers usually settle by the next business day; SEPA Instant delivers in seconds. Outside SEPA, correspondent banking adds variability and cost.
Dedicated IBAN vs pooled accounts
A dedicated IBAN is issued solely to your company or customer, simplifying reconciliation and audits. Pooled accounts aggregate flows and rely on references for allocation, which suits marketplaces but requires strict controls.
Risk & compliance checklist for IBAN payments
- Verify counterparties and screen sanctions
- Apply four-eyes control for account changes
- Store bank details securely
- Re-validate recipient lists periodically
Payment rails and IBAN usage
| Rail / Scheme | Currency | Region coverage | Requires IBAN? | Requires SWIFT/BIC? | Typical speed | Typical fees model | Use cases | Notes & limits |
|---|---|---|---|---|---|---|---|---|
| SEPA Credit Transfer (SCT) | EUR | SEPA zone | Yes | Often no | Next business day | SHA | Supplier invoices, payroll | Cut-off times apply |
| SEPA Instant | EUR | SEPA zone | Yes | No | Seconds, 24/7 | SHA | Urgent payments | Both banks must support |
| SEPA Direct Debit (SDD) | EUR | SEPA zone | Yes | No | Scheduled | SHA | Subscriptions, utilities | Mandate required |
| SWIFT wire | Multi | Global | Yes | Yes | 1–5 business days | SHA / OUR / BEN | Global suppliers | FX and intermediaries apply |
FAQ
What is an IBAN number?
It is a standardized international bank account number that helps route cross-border payments accurately.
Is IBAN the same as SWIFT/BIC?
No. IBAN identifies the account, while SWIFT/BIC identifies the bank.
How long do IBAN payments take?
Inside SEPA, usually next business day or seconds with SEPA Instant; outside SEPA, several days.
Can you send money with IBAN only?
Within SEPA often yes; outside Europe, both IBAN and SWIFT/BIC are usually required.
Where can I find my IBAN?
In online banking, on statements, or from your bank or provider.
Do US banks have IBAN?
No. The US uses local account and routing numbers instead.
