What is a banking code?

What is a banking code?

A bank code is a numerical identification code for each bank used in financial transactions such as bank transfers. Codes are national and typically assigned by the banking body or the country’s central bank. The format and information in a bank code are country-specific, so the term “bank code” has a more general meaning.

Why are US Bank SWIFT codes needed?

When making an international transfer to a US Bank bank account, or if someone is transferring cash to a US Bank bank account in the United States, the sender will need a BIC/SWIFT code along with details like the bank’s address.

Do banks have codes in the US?

In the US, bank codes are often referred to as routing numbers a nine-digit number found on a check between the two colons specifies the American bank. The bank code is a combination of the routing number and the bank account number.

What do bank codes look like in the UK?

UK banks use a 6-digit sort code to mark the different institutions. The first two digits identify the bank (HSBC is 40), and the rest of the number indicates the branch. Sort codes are on the back of credit cards or UK bank statements.

What are the types of bank codes?

There are several types of bank codes including routing numbers and sort codes. The main bank codes are:

1. Routing number (ABA number) and bank account number
2. IBAN (international bank account number)
3. SWIFT code (SWIFT/BIC)
4. CLABE
5. Sort Code
6. BSB (in Australia)
7. New Zealand BSB/Clearing Code
8. IFSC
9. MICR Code (in India)
10. Hong Kong Bank Code

Let’s go over the above in more detail.

Routing number (ABA number) and bank account number

The bank’s routing and account numbers are printed in MICR ink on the bottom of each check. MICR is magnetic ink character recognition that computers use to read numbers.

IBAN

IBAN is a standard format bank code with up to 32 alphanumeric used internationally (though not in the US or Canada) to identify a foreign bank account. IBAN codes are used for wire and interbank transfers and transactions, including cross-border payments. The IBAN includes a country code, two check digits, and a bank account number.

SWIFT code

A SWIFT code is used for international money transfers. The SWIFT code or Bank Identifier Code (BIC) is an eight to 11 digit code that represents the bank, county, the bank’s head office location, and sometimes a specific branch.

CLABE

In Mexico, CLABE (Clave Bancaria Estandarizada) translates to standardized bank code used for banking transactions and bank transfers.
Sort Code
England and Ireland use the sort code to identify an account’s bank location. Sort codes are six digits, written as three sets of two numbers. The Ireland sort code, or National Sort Code or NSC, begins with 9. The sort code is part of the IBAN code for international bank transfers.

BSB (in Australia)

The BSB (Branch State Bank) code identifies bank branches in Australia. The BSB code is six numbers. In Australia, international bank transfers use a BSB, account number, and SWIFT code for processing through the SWIFT network.

New Zealand BSB/Clearing Code

New Zealand uses its a six-digit BSB bank code to identify a bank (first two digits) and the branch location (last four digits). The seven-digit account number and the suffix of two or three digits are used in wire transfers.

IFSC

In India, the IFSC (Indian Financial System Code) is used to transfer money between Indian banks and to transfer foreign money to Indian bank accounts.

MICR Code

India also uses a MICR code. The MICR India code consists of City Code, Bank Code, and Branch Code of three digits, totaling nine digits. MICR is magnetic ink character recognition printed on checks for automatic electronic reading.

Hong Kong Bank Code

The Hong Kong bank code is a three-digit bank code number that identifies the bank name. It’s only used for domestic transactions within Hong Kong. To make transfers, the Hong Kong bank code is combined with the branch code and bank account number. Hong Kong also uses the SWIFT code and IBAN for making overseas bank transfers.