The next time you request payment, you suddenly read something from IBAN and BIC instead of your account number and bank code. But what is the BIC? We explain to you what the abbreviation means and why you should know the code.
Explanation
The term “Bank Identifier Code” is hidden behind the abbreviation BIC. Translated, this means “bank identification code”. The BIC allows banks from all over the world to be identified with just one code. This is particularly useful for international payments and allows payments to be exchanged more easily.
The BIC consists of the bank code, the country code and the location code. In larger cities, there is another code for the respective branch. This structure, known from addresses, allows precise assignment.
The BIC was introduced by SWIFT, an international association of financial institutions.
Frequently asked Questions
Do I have to provide the BIC for transfers?
The BIC is required for transfers and is now the standard. To make the switch more accessible, many companies and banks continue to offer account numbers and sort codes. In this way, you avoid the need to provide the BIC, at least domestically.
Where can I find the BIC?
The BIC is communicated on transfer media and in online banking. You can also contact your bank by phone and ask for the information. The BIC of the recipient is given on the payment request. If this is not the case, contact the private individual or the company.
I sent payment with the wrong BIC or no BIC
As a rule, banks reject transfers without a BIC if this goes abroad. It is assumed that you forgot the code. If you have given it incorrectly, please get in touch with an employee by phone. He will block the payment, and you can resubmit the transfer.
Also Read: What Is A PUK?