You’ll likely be asked for a SWIFT or BIC code whenever you want to make a foreign transfer. Many people don’t understand this code, how it works, and where to find the correct one. This article is the solution, explaining what you need to know about SWIFT codes.
What Is A SWIFT Code?
SWIFT stands for Society for Worldwide Interbank Financial Telecommunications. It’s the standard system that banks use to communicate with each other. Every banking institution connected to this network has a unique Bank Identifier Code (BIC) or SWIFT code.
How Does It Look Like?
It takes this format; AAAABBCCDDD.
- AAAA identifies the banking institution’s name. It’s usually an abbreviation of the institution’s formal name.
- BB identifies the country in which the bank is located.
- CC identifies the institution’s head office.
- DDD identifies a specific banking branch.
Here’s an example to illustrate: CHASUS33OC3.
- CHAS signifies JP Morgan Chase, America’s largest banking provider.
- US stands for the United States of America.
- 33 identifies JP Morgan Chase’s head office in New York.
- OC3 is the code for a specific JP Morgan branch in New York City (NYC).
Where Can I Find My BIC?
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Ask the recipient
You can ask the recipient of your intended foreign transfer to provide the correct SWIFT code for their banking institution. Information from the horse’s mouth is more likely to be reliable.
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Official website
You can check your financial institution’s official website for a list of codes for all their branches. You’ll typically find this information under these website sections; Frequently Asked Questions (FAQ), Bank Branches, or a dedicated SWIFT finder page.
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Third-party websites
Many third-party websites specialize in aggregating BICs for different banking institutions and displaying them to users. These BIC directories organize their information so you can easily find them. There’ll likely be a search bar to check for your bank’s code.
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Bank statements
You can request a formal banking statement. You’ll usually find the code at the top or bottom of the document.
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Customer service
You can call your bank’s customer service line and ask for the BIC. Check the website for the official customer service line and place a call; a support representative should be able to help you find the BIC for your specific banking branch.
Ensure you double-check the SWIFT code with your bank before initiating a transfer. Giving a wrong BIC means the transfer will not reach the intended recipient. If the BIC you provided is invalid, your bank will reverse the transfer to your account. If you provide a BIC for another institution, your bank will send the money there, and it’ll get stuck because the intended recipient has no account there. In this case, you can contact your financial institution to initiate a reversal.
How To Prevent Common SWIFT Code Mistakes
- Avoid typographical errors. A single wrong letter is enough to make your foreign transfer invalid.
- Ensure you have the correct full name of the recipient’s banking institution.
- Provide complete instructions when filling out the transfer slip, including type of account (personal or business), bank name, purpose of payment, etc.
How Do SWIFT Transfers Work?
Whenever you initiate a foreign transfer, your banking institution contacts the recipient’s institution via their BIC. It tells the recipient’s institution to deposit the required amount in their bank account. It then deducts the equivalent amount from your account.
Without the correct BIC, your bank won’t be able to contact the intended recipient’s banking provider.
Conclusion
We have duly explained SWIFT codes, how they work, and where to find them. At this point, you should understand everything you need to know to make a foreign transfer.
