IBAN (International Bank Account Number)

IBAN (International Bank Account Number) is a bank account identifier developed by the European Committee for Banking Standards, primarily used for cross-border payments in Europe and some countries in the Middle East, North Africa, and the Caribbean. It contains up to 34 alphanumeric characters and is structured as: 2-digit country code + 2-digit check digits + Basic Bank Account Number (BBAN). In foreign trade, IBAN is commonly used to send payment notifications to or receive payments from European customers, reducing transfer errors and delays. Use cases include letters of credit, telegraphic transfers (T/T), and documentary collections. Note: IBAN is not globally universal; countries like the US and Canada do not use it. It only identifies the account, not the bank address, and must be used with a BIC/SWIFT code. IBAN lengths vary by country, and check digits must be verified. Difference from SWIFT code: SWIFT identifies the bank, IBAN identifies the specific account. Difference from ABA number: ABA is used only within the US. Foreign trade professionals should ensure IBAN accuracy to avoid returned payments or extra fees due to format errors.