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Have you ever wanted to send money abroad? It’s easy, right? You just enter the recipient’s bank details, hit ‚send‘, and you’re done.
Wrong.
When it comes to international payments, there’s more to it than that. You’ll need to provide the bank of the recipient with something known as a SWIFT code. But what is a SWIFT code? And why do banks need it?
In this article, we’ll explain all you need to know about SWIFT codes, including what they are, why you need them, and how to find them.
What is a SWIFT Code?
SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. It’s a unique code that’s used to identify banks around the world.
It’s also known as a Bank Identifier Code (BIC).
SWIFT codes are used by banks to securely and accurately transfer money between them. It allows them to route international payments in the same way that postcodes are used to route letters.
Why Do Banks Need a SWIFT Code?
As we’ve already mentioned, SWIFT codes are used to identify banks around the world. This is important for international payments, as it ensures that payments are sent to the right bank.
If you don’t provide the correct SWIFT code, there’s a chance your payment will be rejected by the recipient’s bank. Or, even worse, it could be sent to the wrong bank account.
Where Can You Find a SWIFT Code?
Finding a SWIFT code is easy. All you need to do is contact your bank and ask for it. They should be able to provide you with the SWIFT code for their bank.
If you’re looking for a specific bank’s SWIFT code, you can also try searching for it online. There are a number of websites that provide a directory of SWIFT codes, such as swiftcode.org.
Conclusion
As you can see, a SWIFT code is a vital piece of information when it comes to international payments. Without the correct code, your payment might not reach its intended recipient.
So, the next time you’re making an international payment, make sure you get the SWIFT code from your bank. That way, you can rest assured that your payment will reach its destination safely and securely.