What is an IBAN? Definition, Format, and How to Use It

Key takeaways

• Use an IBAN when you pay vendors in the 89 countries that rely on the IBAN system, mainly across Europe, the U.K., the Middle East, and the Caribbean.
• Recognize that U.S. bank accounts do not have IBANs, so U.S. banks use SWIFT codes and routing numbers instead.
• Share your IBAN with confidence, since it can only be used to receive payments and not to withdraw funds.
• Verify an IBAN before you send money, because its format of up to 34 characters varies by country.

What is an IBAN?

IBAN stands for International Bank Account Number. It’s a unique set of digits and letters representing a specific bank account in any of the 89 countries that use the IBAN system. It is typically used to facilitate cross-border transactions to the U.K., Europe, the Middle East, and the Caribbean.

Why is an IBAN important for international transactions?

An IBAN matters because it standardizes account details across borders, so payments arrive faster and with fewer errors. Before IBANs, mismatched account-number formats between countries caused confusion, delays, and misdirected funds.

The IBAN system was created to solve this, offering a clear set of globally accepted rules for codifying bank information.

What does an IBAN look like?

An IBAN has up to 34 characters and typically includes:

• Country code
• Check digit code
• Bank identifier code
• Branch code
• Account number

The format and length of IBANs vary from country to country. If you’re paying a vendor in Germany, for example, you’ll get a 22-character code that looks like this: DE75512108001245126199. If they’re in France, it’ll be 27 characters long and look something like this: FR7630006000011234567890189.

You don’t need to memorize each country’s format. Your payment provider matches the IBAN to the right account, and you can verify an IBAN online before you send.

Do U.S. bank accounts have IBANs?

No. U.S. bank accounts don’t have IBANs. U.S. banks use IBANs only to send outgoing payments to foreign accounts in IBAN countries. For their own accounts, and for incoming payments, they use SWIFT codes and routing numbers instead.

IBAN vs. SWIFT code: what’s the difference?

IBANs and SWIFT codes (also known as BIC codes) both represent bank information, but they differ by geography. IBAN is mostly used in Europe, while SWIFT is used in the U.S., Mexico, and Canada, among other locations. Another difference is that an IBAN refers to a specific bank account, while a SWIFT code identifies a financial institution so banks can communicate account information.

Some payment processors and banks may need both an IBAN and a SWIFT code for the receiving account. If you make an international payment via Melio, you’ll be prompted to provide the relevant number, according to the payment’s destination country.

Is it safe to share your IBAN?

Yes, it’s safe to share your IBAN. To get international payments, the account owner gives the payor their IBAN or SWIFT code, depending on the system used in their country. This information can’t be used to access funds or perform any actions in the account. Since it can only be used to receive money, there’s no need to worry about security when sharing an IBAN.

Where to find an IBAN

An IBAN can easily be found by an account owner on their bank statement or banking website. If your vendor didn’t provide their international payment details but you have their full account information, you can use an online calculator to find their IBAN.

Make international payments with Melio

Now you can pay overseas vendors as easily as domestic ones. Go ahead and schedule your first international payment on Melio.

IBAN FAQs