Business accounts

What is IBAN number and how does it work?

Apr 05, 2024

The IBAN number is an important, unique identification number that is especially important for businesses that work with a lot of international clients. The IBAN number Australia mandates is useful for businesses that want to receive or make payments in international currencies.

This number is different from your SORT or bank account number and is used specifically for the purpose of facilitating international transactions for business purposes.

What is IBAN number?

To understand what is IBAN number you must know that it is a standardized system that is used for identifying bank accounts during financial transactions. It was developed to facilitate efficient and error-free cross-border payments.

The IBAN consists of a series of alphanumeric characters that include a country code, two check digits, and a bank account number. The number of digits in the IBAN varies by country, with some countries having longer IBANs than others.

IBANs are widely used in Europe, the Middle East, and parts of Africa and Asia, but they are not used in all countries around the world.

Decoding IBAN number

An IBAN number is a unique identifier for a bank account in the international banking system. The structure of an IBAN number varies by country, but it typically consists of a two-letter country code, two check digits, and a variable-length alphanumeric code that includes the bank account number.

For example, a typical IBAN number for a bank account in Denmark would look like this: DK95 1000 0999 9999 99

● The first two letters, "DK," represents the country code for Denmark.

● The next two digits, "95," are the check digits used to validate the IBAN number.

● The following 16 alphanumeric characters, "1000 0999 9999 99," represent the bank account number.

The length of the number varies by country, with some countries having longer IBANs than others. The purpose of this number is to provide a standardized format for identifying bank accounts during cross-border transactions, reducing errors and delays in the process.

By using IBAN numbers, banks can quickly and accurately process international payments, making it easier for individuals and businesses to conduct transactions across borders.

How to find your IBAN number?

The IBAN number can usually be found on your bank account statement or online banking portal. If you are unsure about how to find IBAN number, you can contact your bank or financial institution for assistance.

In some cases, the IBAN number may also be printed on a check or bank card. When providing your IBAN number for an international transaction, it is important to double-check that the number is correct to avoid any errors or delays in processing the payment.

Do you know BSB number is crucial while transferring money in Australia? Read our article to know more about what is BSB number in Australia?

How to make international payments with IBAN number?

Collect the recipient's IBAN number and SWIFT/BIC code

The first step is to obtain the recipient's IBAN number and SWIFT/BIC code, which are necessary to initiate the payment.

Verify the IBAN number and recipient details

Before making the payment, it's important to double-check that the IBAN number is correct and that the recipient details are accurate.

Enter the payment information in your bank's online portal

Enter the recipient's IBAN number, SWIFT/BIC code, and the payment amount in your bank's online banking portal.

Confirm the payment

Review the payment details and confirm that everything is correct before submitting the payment.

Await payment confirmation

Once the payment has been submitted, you will need to wait for confirmation from your bank that the payment has been processed and sent to the recipient's bank.

Volopay is the best solution for all your international business transactions

Volopay is a comprehensive financial solution for businesses with global business accounts that offers several benefits for international business transactions.

One of the key advantages of Volopay is its ability to hold and support multiple currencies, which allows businesses to manage expenses in various countries and avoid costly currency exchange fees.

The platform also offers real-time expense tracking and automated expense reporting, which can help businesses stay on top of their expenses and reduce the risk of errors and overspending. In addition, Volopay provides a virtual card solution that can be used for international online transactions, making it easy for businesses to manage payments and reduce the risk of fraud.

Overall, Volopay offers a comprehensive and user-friendly financial solution for businesses looking to manage their expenses and streamline their international transactions. With its advanced features and capabilities, Volopay can help businesses save time and money while improving their financial management and control.

Do hassle-free international transactions with Volopay business accounts