What Is a Swift Code?

A SWIFT code is a unique identification code that banks use to process international money transfers quickly and securely. It tells the sending bank exactly which financial institution and branch should receive the funds.

If you’re sending or receiving money from abroad, you’ll almost always need a SWIFT code to make sure your payment arrives at the right place.

Used by more than 11,000 financial institutions worldwide, SWIFT codes are the global standard for directing money across borders. They work like a precise address for banks, ensuring payments are routed accurately and efficiently—whether you’re paying an overseas supplier, sending money to family, or receiving funds from an international client.

What does SWIFT stand for and how does it work?

SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. Founded in the 1970s and headquartered in Belgium, it’s a global network that allows banks and other financial institutions to exchange secure payment instructions. Today, more than 11,000 institutions in over 200 countries use SWIFT to route international money transfers accurately and efficiently.

When you send money abroad, your bank uses SWIFT to send a secure message to the recipient’s bank. This message contains details like the payment amount, currency, and the account to credit, ensuring funds are sent to the correct bank and location.

SWIFT Code Format and Example

A SWIFT code is made up of 8 to 11 characters, each with a specific purpose:

• First 4 characters – Bank code: Identifies the bank’s name.
• Next 2 characters – Country code: Shows the country where the bank is located.
• Next 2 characters – Location code: Indicates the city of the bank’s head office.
• Last 3 characters (optional) – Branch code: Points to a specific branch, or “XXX” if it’s the main office.

Example: In the code ABCDGB2LXXX

XXX = Main branch

ABCD = Bank code

GB = Country code for Great Britain

2L = Location code

What SWIFT Codes Are Used For

The main purpose of a SWIFT code is to make sure international payments go to the right bank in the right location. Without it, funds could be delayed, misrouted, or even returned.

Banks also use SWIFT codes for other cross-border activities such as trade payments, issuing Letters of Credit, and transferring funds between financial institutions. While the SWIFT code moves the payment instructions, the actual money is transferred through the bank’s own payment channels or through correspondent banks.

How to Find Your Bank’s SWIFT Code

You can usually find your bank’s SWIFT code by:

• Checking your printed or online bank statements.
• Logging into your bank’s online or mobile banking platform.
• Calling your bank’s customer service line.

Some banks list their SWIFT codes on their websites, and there are also online SWIFT code directories. If your bank doesn’t have its own SWIFT code, they’ll give you the code of a partner or correspondent bank that handles international payments on their behalf. Always confirm details before sending money to avoid costly errors.

How to Send Money Internationally With a SWIFT Code

1. Collect details: Get the recipient’s full name, bank name, bank address, account number (or IBAN), and the correct SWIFT code.
2. Visit your bank: Log in to online banking, use your bank’s app, or go to a branch to set up the transfer.
3. Enter payment information: Input the amount, currency, and all recipient details, including the SWIFT code.
4. Review and confirm: Double-check every detail before submitting.
5. Pay the fees: Be aware that your bank, intermediary banks, and the recipient’s bank may each charge fees.

Transfers typically take 1–5 business days, depending on the countries involved, the banks’ processing times, and whether intermediary banks are used.

SWIFT Code vs. IBAN: What’s the difference?

A SWIFT code identifies the bank that will receive an international transfer, while an International Bank Account Number (IBAN) identifies the specific account within that bank. Think of the SWIFT code as the bank’s address and the IBAN as the apartment number within that address.

Most international transfers, especially in Europe, require both. The SWIFT code ensures your payment reaches the right bank, and the IBAN ensures it’s credited to the right account.

Alternatives to SWIFT for Sending or Receiving Money

While SWIFT is the most widely used system for international transfers, other options may be faster or less expensive in certain situations:

• Wise (formerly TransferWise): Offers low-cost transfers using the mid-market exchange rate.
• SEPA (Single Euro Payments Area): A fast, low-fee option for euro transfers within Europe.
• Cryptocurrency transfers: Can be fast and cost-effective, but volatility and regulatory issues can be concerns.
• Western Union or MoneyGram: Useful for sending cash to recipients without a bank account, though fees can be high.

The right choice depends on your priorities—speed, cost, convenience, or accessibility.

Common Misconceptions About SWIFT Codes

Even though SWIFT codes are widely used, there are still a few misunderstandings about what they are and how they work. Clearing up these points can help you avoid mistakes when sending or receiving money internationally:

• They’re only for banks: While banks are the primary users, SWIFT codes are also assigned to credit unions, investment firms, clearing houses, and even some insurance companies.
• They move the money: SWIFT codes transmit payment instructions, but the actual funds move through separate settlement systems or correspondent banks.
• All branches have unique codes: Many banks use one generic “head office” code (ending in “XXX”) for all locations, while others have branch-specific codes. Always check before sending funds.

Conclusion

SWIFT codes are an essential part of sending and receiving money internationally. They act as a bank’s global address, ensuring your payment is routed to the right institution and, when paired with an IBAN, to the correct account. Without the right code, your transfer could face delays, extra fees, or end up at the wrong bank entirely.

Before you make an international payment, confirm the SWIFT code with the recipient or their bank. A quick double-check can save you days of waiting and unnecessary charges, giving you confidence that your money will arrive where it’s meant to go.

Frequently Asked Questions

What happens if I use the wrong SWIFT code?

If you enter the wrong SWIFT code, your payment may be delayed, rejected, or sent to the wrong bank. In rare cases, funds could be credited to the wrong account. Contact your bank immediately if you notice an error so they can attempt to recall or correct the transfer before it’s processed.

Can I receive money internationally without a SWIFT code?

In some regions, yes. For example, countries in the Eurozone often use IBANs for international transfers within SEPA. However, most banks worldwide require a SWIFT code to receive payments from abroad. If your bank doesn’t have one, they will typically use the SWIFT code of a partner (correspondent) bank to complete the transfer.

Is it safe to give out my bank’s SWIFT code?

Yes. A SWIFT code is public information used only to identify your bank during international transactions. It cannot be used to access your account. Still, never share sensitive information like your account number or online banking credentials unless you’re dealing with a trusted party.

How long does a SWIFT transfer take?

Most SWIFT transfers take one to five business days, depending on the countries involved, time zones, and whether intermediary banks are used. Delays can occur if the transfer is sent on a weekend, public holiday, or outside banking hours.

Why do SWIFT transfers have extra fees?

Fees can come from multiple sources—your bank, the recipient’s bank, and any intermediary banks that help process the payment. These charges vary by bank and country, so it’s worth asking your bank for a breakdown before sending money.