Concept Definition
What is a SWIFT BIC?
A SWIFT BIC (Business Identifier Code) is an internationally standardized code used to identify financial institutions in cross-border payment transactions. It is 8 or 11 characters long and is required on international wire transfers alongside the recipient IBAN. It is maintained by SWIFT (Society for Worldwide Interbank Financial Telecommunication).
What is the BIC format?
A BIC has 8 or 11 characters:
- Bank code: 4 uppercase letters identifying the institution.
- Country code: 2 uppercase letters (ISO 3166-1).
- Location code: 2 alphanumeric characters.
- Branch code: 3 alphanumeric characters (optional; omitted for head office).
- Example: DEUTDEDB (Deutsche Bank, Germany, 8-character BIC).
Frequently Asked Questions
- Is BIC required for SEPA payments?
- BIC is no longer mandatory for SEPA credit transfers and direct debits within SEPA since 2016. IBAN alone is sufficient for intra-SEPA payments. BIC remains required for non-SEPA international wire transfers.
- Should a BIC be included on an e-invoice?
- Including the BIC on international invoices is recommended practice for non-SEPA payments. In UBL and CII, the FinancialInstitutionBranch/ID element carries the BIC when specified alongside the IBAN.