What's a SWIFT code and how does it work?

Sending or receiving money across borders often involves navigating unfamiliar financial terms and strings of confusing characters. If you're preparing to send an international payment from the US, you'll likely be asked to provide a specific identifier to make sure your money reaches its destination securely.

Read on to learn all about SWIFT codes, how they work, and how you can use them to send and receive money across borders.

Want to know the basics first? Check out our guide to bank transfers.

SWIFT code: Understanding its meaning

When you look behind the scenes of overseas payments, you'll find a global system dedicated to clear communication. SWIFT itself stands for the Society for Worldwide Interbank Financial Telecommunication, which operates the network that banks use to exchange transaction details in the form of messages. A SWIFT code is a globally standardized combination of numbers and letters that points to a specific financial institution.

Think of it as a digital ZIP Code for a bank building. When you initiate a wire transfer, this international bank transfer code instructs the network exactly where to deliver your payment message. Once the message reaches the correct destination bank, that institution uses the individual account number to put the money into the right person's account.

The role of a BIC code

You may occasionally fill out international payment forms that ask for a BIC code instead of a SWIFT identifier. Don't worry — they're the same thing. BIC stands for Bank Identifier Code, and it refers to the exact same 8–11 character sequence assigned by the SWIFT network to verify banks globally.

Want to learn about other transfer methods? Check out our guide to ACH vs wire vs SWIFT.

Anatomy of a SWIFT international bank transfer code

Every code follows a structured format defined by international standards. The characters are divided into 4 sections so that automated systems can easily read them:

1. Bank code (4 letters): A unique, shortened sequence that represents the specific bank name (like REVO for Revolut).
2. Country code (2 letters): Identifies the country where the bank's head office is located (such as US or GB).
3. Location code (2 characters): Points to the city or region of the branch where the recipient holds their account.
4. Branch code (3 characters): An optional addition that highlights a specific local branch.

SWIFT vs International Bank Account Number (IBAN): What's the difference?

When sorting through international bank transfer code requirements, it's easy to confuse different sets of numbers. The easiest way to spot the difference between SWIFT codes vs IBANs is to look at what they're specifically labelling.

A SWIFT code pinpoints the financial institution itself. An International Bank Account Number (IBAN), on the other hand, identifies an individual bank account within that institution. While the SWIFT network is used worldwide, the IBAN system is used mostly within Europe, the Middle East, and parts of the Caribbean.

While both identifiers are important for sending money overseas, they have completely different structures and purposes:

• SWIFT/BIC codes: These consist of 8 or 11 characters and act as a financial routing identifier to point directly to a specific bank or head office. The anatomy we described above (4-letter bank code, 2-letter country code, 2-character location code, and optional 3-character branch code) outlines exactly how the SWIFT network identifies an institution globally.
• IBANs: These are much longer​ — varying by country up to 34 characters​ — and point to a specific, individual account within that bank. An IBAN's anatomy includes a country code and check digits, followed by a local Basic Bank Account Number (BBAN) which houses the local branch and unique account details.

Because the US relies on domestic routing numbers and standard account numbers for local transfers, your US account doesn't have an IBAN, though you'll need to provide one when you're sending money to a friend in Europe.

Want to learn more? Read our guide to IBAN vs SWIFT codes.

Moving money without the traditional friction

We've designed a modern financial network that takes the guesswork out of international transfers. Instead of worrying about writing down long, complicated strings of characters, our platform guides you through the process step-by-step, validating the information as you type.

Ready to start sending global payments with ease? Follow these simple steps to set up your account:

1. Download the Revolut app from the App Store or Google Play Store.
2. Sign up for Revolut by entering your phone number and completing the identity verification steps.
3. Add money to your balance via a debit card, bank transfer, Apple Pay, or Google Pay.
4. Navigate to Payments and tap the + symbol to select an international transfer.
5. Enter your recipient's details, check the live exchange rates, and tap Send.

Want to learn more about international transfers? Check out our guide to sending money abroad.

Exchange and global transfer fees, fair usage limits, and Terms and Conditions apply.