For Increased Security Make Use Of The BIC Code In Banks
Are you in search for the safest place for money keeping? Well what else can be the best place other than a bank! A bank is the securest place to keep all you money and also retrieve it whenever you are in need. There are uncountable transactions that take place in a bank per day. So while making payments or during heavy transactions there must be some codes that will make sure of the safety and security of such transactions.
BIC Code is one of a kind that is used by the banks during cross border transactions. This Bank Identification Code is the universal method for identifying the money transactions for facilitating the processing of the payments in the automated manner. There is another code viz. SWIFT code which is also used by banks for identifying different banks on the international level.
This code makes sure that the transactions are being done without any mistake and verified by the bank. Use of different codes guarantees that these banks have the right to make certain transactions. If you want to go for further verifications like if you want to make sure that the transactions are rightfully done by the banks, these codes involves in the transaction, specially during international transactions. BIC Code comprises of eight or eleven digits and is used for identifying the bank, country, location and branch.
Different countries of the world have different bank identification codes. Out of which the first four alphabetical characters identifies the particular bank while the next two stands for the ISO country code. They are used for the identification of a country. For example, DE identifies Germany. Such codes are already appointed to each country and hence you can easily find the list for these codes anywhere. The next two characters specify the location or the city of the country and finally the last three are the optional ones. They are used in the identification of the branch or some specific office. SWIFT code is yet another way of identifying the banks accross different countries with a different coding method.
Different banks have different coding schemes for different countries. For example, in the United States and Canada, ABA Numbers are used for identifying the individual countries in national interbank transactions whereas the Sort codes are used in the UK to serve the same purpose. An important function of this code is to ensure that the monetary transactions are made in order, i.e. without any confusion. The bank is able to transfer the money to the right bank and do not violate any sort of banking laws. SWIFT code is very important for identifying different banks in different countries during international wire transfers.
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One thought on “For Increased Security Make Use Of The BIC Code In Banks”
Our local bank – The University of Virginia Community Credit Union is not a commercial bank. I’ve been told that the bank has only a routing number and not a SWIFT or BIC or IBAN. Why would this be? A bank Switzerland is trying to transfer money to my bank (UVA Community Credit Union) and needs the SWIFT , IBAN or BIC. Can the transfer be done with only the routing number?