Today’s interconnected world has meant that cross-border payments are the way to go for business and personal finance. For such organizations as Eximpe, which conducts cross-border payments and trade, the knowledge of the basics of the SWIFT code is an integral part of frictionless and secure transactions. Have you ever wondered what the SWIFT code stands for, how the SWIFT code works, and what its usage is? Then this article is for you.
What is a SWIFT Code?
By another name, a SWIFT could also be called a SWIFT number or BIC – (Bank Identifier Code), which is an alphanumeric term given to banks and financial institutions around the world. Get ready for an imperial system of currency that works much like a postal code for banks! It ensures that worldwide payments are delivered to the correct bank and terminal, irrespective of where the payment is received. The acronym “SWIFT” is actually the abbreviation for the Society for Worldwide Interbank Financial Telecommunication, which is a cooperative organization that was founded in 1973 and is located at its headquarters in Belgium. SWIFT has a secure system through which banks around the world can communicate and execute financial remittances.
How is a SWIFT Code Structured?
A SWIFT code is made up of 8 to 11 characters, each section providing specific information about the bank:
- Bank code (4 letters): Identifies the bank (e.g., DEUT for Deutsche Bank)
- Country code (2 letters): Indicates the country (e.g., DE for Germany)
- Location code (2 letters or numbers): Specifies the location or city (e.g., FF for Frankfurt)
- Branch code (3 letters or numbers, optional): Points to a particular branch (e.g., XXX for the main office)
SWIFT Code Example:
Let’s break down the SWIFT code for Deutsche Bank: DEUTDEFFXXX.
| Section | Value | Meaning |
| Bank code | DEUT | Deutsche Bank |
| Country code | DE | Germany |
| Location code | FF | Frankfurt |
| Branch code | XXX | Main office |
If the code is only 8 characters, it refers to the bank’s primary office. An 11-character code includes the specific branch.
What is the SWIFT Code of the Bank?
Each bank that services global transactions has a SWIFT code. For instance, the SWIFT code of DBS Bank India Limited is DBSSINBBXXX. You can trace the SWIFT code of your bank using the bank statement, visit the bank websites, and call the branch directly. It is compulsory whenever you want to send or receive money from outside the country.
SWIFT Code Uses
SWIFT codes are indispensable in the world of international finance. Here’s how they are used:
- International Wire Transfers: When sending money overseas, you need the recipient’s bank SWIFT code to ensure funds reach the correct destination.
- Receiving Funds: If you’re expecting money from abroad, you’ll provide your bank’s SWIFT code to the sender.
- Bank Communication: SWIFT codes facilitate secure communication between banks, allowing them to exchange information about transactions, settlements, and other financial activities.
- Trade and Commerce: Businesses use SWIFT codes for cross-border payments, import/export settlements, and supplier payments.
Without a SWIFT code, international payments could get lost, delayed, or even rejected, as banks wouldn’t know where to send the funds.
Why is a SWIFT Code Important?
Global transfers were slow, hassle-free, and error-prone before the SWIFT system. SWIFT made the process more efficient by having standardized communication and a secure, automated bank network. Today, over 11 billion messages traverse through SWIFT, making it the core of the global world of finance. For businesses like Eximpe, which specializes in international payments and trade, SWIFT codes make the process of all the transactions traceable, secure and adherent to international banking standards.
How to Find and Use a SWIFT Code
- Ask Your Bank: The simplest option is to ask your bank in person or on your online banking platform.
- Bank Statements: SWIFT codes are frequently included on bank statements.
- Official Websites: Several banks post their SWIFT codes on their websites.
- Third-Party Tools: Trustworthy financial platforms such as Wise or Stripe also offer SWIFT code lookup tools.
When making an international transfer, always double-check the SWIFT code to avoid delays or misrouted payments.
Conclusion
SWIFT cards are one of those little details when doing international banking. Whether you are an individual paying money to relatives overseas or EXIMPE, a company trading across the globe and having to make trade payments, it is possible to save time, money and potential trouble by being aware of the SWIFT code, its format and use. The next time you’ll be asked for a SWIFT code, you’ll be in the know and able to put it to good use.
For seamless global payments, trust Eximpe, your partner in international trade and finance.
FAQs
A SWIFT code (also known as a BIC) is a unique identifier for banks worldwide, ensuring international payments are securely and accurately routed to the correct financial institution, which is essential for Eximpe’s seamless global transactions.
You can find a SWIFT code on your bank statement, on the bank’s official website, or by contacting your bank directly. Eximpe recommends double-checking the code before making or receiving international payments.
Using the wrong SWIFT code can lead to delays, returned funds, or, in rare cases, the money being credited to the wrong account. Always verify the code to avoid costly errors.
No, a SWIFT code identifies the bank, while an IBAN identifies an individual account. A routing number is used for domestic transfers only. For international payments, Eximpe uses SWIFT codes to ensure accuracy.
International payments via SWIFT may incur fees, especially if intermediary banks are involved. Exporters may also need documents like a Foreign Inward Remittance Certificate (FIRC) for compliance.
