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Ever paid a contractor abroad? To do it, chances are you needed a SWIFT code. Also known as a bank identifier code, or BIC, codes like these pinpoint the correct receiving institution so that international wire transfers arrive securely and accurately.

Whether you’re sending money internationally or running a business that pays workers worldwide, understanding the basics of the SWIFT network can help you navigate cross-border compensation with confidence.

In this guide, we’ll explain what SWIFT codes are, how they compare to international bank account numbers (IBANs), and why they’re key to secure, accurate money transfers. 

What is a SWIFT/BIC?

A SWIFT code is a unique alphanumeric identifier that tells global financial systems exactly where to route a payment—down to the specific bank branch—so that international money transfers reach the correct recipient’s account.

Developed in the 1970s by the Society for Worldwide Interbank Financial Telecommunication, the SWIFT network now connects thousands of financial institutions in more than 200 countries.

What is a SWIFT/BIC used for?

A SWIFT/BIC acts like your bank’s digital address. When you initiate a money transfer, your bank uses the SWIFT network to communicate with the recipient’s financial institution. The SWIFT/BIC ensures that those messages reach the correct interbank connection by verifying the bank identifier code and the destination’s country code. This quick and accurate process allows funds to move across borders with minimal risk or delay. 

For example, if your company works with an overseas entity like a contractor in Germany or a vendor in China, you’ll likely need a SWIFT/BIC to get the payment to the right place. In these cases, the code connects your financial institution to the appropriate interbank network abroad. 

Beyond wire transfers, SWIFT codes also help institutions exchange other types of financial messages, including trade confirmations, securities transactions, and foreign exchange instructions. Think of it as a universal language that allows banks to securely speak to each other, no matter where they’re located.

And when it comes to global payroll, the stakes are high. A mistyped BIC or incorrect bank account number can delay payments to remote team members or trigger costly compliance issues. That’s why understanding how SWIFT codes work—and using them correctly—is critical to any international transfer strategy. 

How are SWIFTs/BICs formatted?

SWIFT codes contain either eight or 11 alphanumeric characters.

The first four letters represent the bank code, which identifies the specific financial institution. For example, “HSBC” is for the Hong Kong and Shanghai Banking Corporation (HSBC), and “CITI” is for Citibank. 

The next two letters indicate the bank’s country code, such as “US” for the United States or “CA” for Canada. 

After that, two characters specify the bank’s location—usually a city or a region. 

Finally, an optional three-character sequence identifies a specific branch. If this part is missing or shown as “XXX,” the SWIFT code refers to the bank’s main office rather than a local branch.

Here’s how it breaks down: 

• AAAA: Bank code 
• BB: Country code
• CC: Location code
• DDD: Branch code (optional, or “XXX” for the main office) 

For example, JPMorgan Chase’s main office in New York uses the SWIFT code “CHASUS33.” Here, “CHAS” is the bank code for Chase, “US” is the country code, and “33” represents New York City. The 11-character version, “CHASUS33XXX,” refers to JPMorgan Chase’s primary office for SWIFT transactions in the U.S.

How to identify your SWIFT/BIC

Locating your SWIFT/BIC is easier than you think. Log in to your online banking portal—your SWIFT/BIC is typically listed alongside your account number and other key banking details. You can also check your most recent bank statement, as many financial institutions include the SWIFT/BIC in the account summary section. 

If you’re still unsure, many banks list their SWIFT/BIC on their websites. You can also use a verified online bank code lookup tool. To use the tool, enter your country code, bank name, and branch to find the exact identifier you need for your next international wire transfer. When in doubt, contact your bank’s customer service department.

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FAQs

How do I know if I need a SWIFT code?

You need a SWIFT code when sending or receiving an international wire or money transfer through a financial institution. Whether it’s payroll, an invoice, or a personal payment, the SWIFT code ensures that your funds reach the correct bank account.

What’s the difference between a SWIFT code and an IBAN?

A SWIFT code identifies the bank, while an IBAN identifies the specific account. Think of the SWIFT code as the street address and the IBAN as the apartment number—for secure, accurate international transfers, you need both.

Is a SWIFT code the same as an employer identification number (EIN)?

No. A SWIFT code is a global bank identifier used for routing international payments. An EIN is a unique U.S. tax identification number issued by the Internal Revenue System (IRS) to help businesses file taxes. The SWIFT code facilitates money movement, while the EIN supports tax reporting. 

Does the SWIFT network operate in every country?

The SWIFT network operates in over 200 countries and 11,000 financial institutions. While not every country’s domestic banks use SWIFT, nearly every country can send and receive SWIFT-based transactions.