What is a SWIFT code?

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What is a SWIFT code?

A SWIFT code is a format for BIC (Bank Identifier Codes) required when you make an international money transfer in order to make the process easier.

It is composed by 4 elements:

  1. Bank code: 4 characters that look like the bank’s name.
  2. Country code: 2 characters that identify with the country where the bank is located.
  3. Location code: 2 characters (letters and numbers) that tells you where the bank’s headquarters are.
  4. Branch code: 3 optional characters specifying a particular branch of the bank.

What is it used for?

It is used when you make an international money transfer to identify the country and bank where the account is registered. Without it, your money transfer might not end in the correct account.

In conclusion

SWIFT codes are something to keep in mind. You may not use them on a daily basis, but if you have friends or family in other countries, you are going to use one of those codes sooner or later.

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Arturo Mendez

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