A Bank Identifier Code (BIC) is a standardised code used to identify a bank in international banking and payment systems. Many people know it as a SWIFT code, because it’s commonly used in the SWIFT messaging network for international transactions and cross-border transfers. A SWIFT code acts like a “global bank address,” helping route payments and messages to the right bank during an international payment.
These codes are widely used in international wire transfers, global payment platforms, and some SEPA payments. Using the correct identifier helps reduce errors and speed up financial transactions, especially when you’re sending money across borders.
For related payment and finance workflows, see SEPA↗, BACS payment↗, and accounts payable cycle↗.
What is a Bank Identifier Code?
A Bank Identifier Code (sometimes referred to as a SWIFT code) is an internationally recognised format for identifying banks used in cross-border payments. It typically has 8 or 11 characters that represent the institution, country code, location code, and sometimes a branch code.
When you set up an international payment, the BIC tells the sending system exactly which bank should receive the instruction. It is commonly used alongside the International Bank Account Number (IBAN), which identifies the destination bank account itself.
If you’re standardising supplier onboarding and invoices, aligning payee information with your payment setup also helps (see how to fill an invoice↗ and invoice reconciliation↗).
How is a BIC structured?
A typical BIC has 8 or 11 characters, structured as follows:
- Bank code (4 characters): identifies the bank
- Country code (2 characters): identifies the country
- Location code (2 characters): indicates the city/region and routing location
- Branch code (3 characters, optional): identifies a specific branch; if omitted it usually points to the head office
Example: ABCDGB2LXXX
- ABCD = Bank code
- GB = Country code
- 2L = Location code
- XXX = main branch / head office
You may also see the term Business Identifier Code (or Business Identifier Codes) used in the same context, because the identifier is designed to uniquely identify the business entity or banking office handling the transfer.
Why are BICs important?
A BIC is important for cross-border payments because it:
- Ensures accurate routing for an international payment
- Supports secure messaging in SWIFT systems
- Improves interoperability between banks and payment networks
Without consistent identifiers, international banking would be more error-prone and slower—especially when different countries use different domestic formats for account routing.
For spend controls and payment governance, see spend control↗, cost control↗, and pending transactions↗.
BIC vs SWIFT code
The terms BIC and SWIFT code are often used interchangeably. That’s because the codes are administered through SWIFT, whose full name is the Society for Worldwide Interbank Financial Telecommunication.
Technically, a BIC is defined by ISO 9362 (sometimes written as ISO 9362), while SWIFT code is the common term most people use. In practice, they refer to the same identifier, so a “BIC lookup” and a “SWIFT codes lookup” are usually pointing to the same data.
BIC vs IBAN (and Account Number)
A BIC identifies the bank, while an International Bank Account Number identifies a specific bank account at that bank.
- BIC / SWIFT code: points to the receiving bank
- International Bank Account Number: points to the destination bank account within that institution
Outside IBAN regions, you may instead be asked for an account number or bank account number (often the same number, just written differently) as part of the account details. In the UK you might also be asked for a sort code alongside your bank account number.
For a UK routing reference, see sort code↗.
When do you need a BIC?
You generally need a BIC or SWIFT code when:
- Sending or receiving an international payment
- Setting up cross-border standing orders
- Using global payment platforms
- Registering beneficiaries in payroll systems
- Integrating payment automation into payables workflows
In some countries and use cases (particularly within the SEPA payments area) BICs may be optional for some transfers, but they remain common in many cross-border scenarios and banking portals.
If you’re building scalable payables workflows, see paperless accounts payable process↗ and procure-to-pay software↗.
How to find a Bank Identifier Code
Common ways to find a BIC / SWIFT code include:
- Checking a bank statement or online banking profile
- Asking the recipient for their BIC and IBAN together
- Using a bank’s official website or lookup tools
- Using trusted directories that list SWIFT codes and bank details
Always verify directly with the recipient, especially for first-time transfers or large payments, to avoid misdirected funds and operational delays. Mistakes can create additional admin and, in rare cases, contribute to financial difficulty if funds are hard to recover quickly.
For better documentation and audit trails around payment requests, see digital receipts↗ and expenses receipt↗.
Common mistakes and best practices
When using a BIC / SWIFT code:
- Double-check your account details, including IBAN or bank account number
- Ensure the branch code is correct if an 11-character code is required
- Don’t guess a SWIFT code based on a bank name, use official sources
- Use clear payee information to reduce exceptions in financial transactions
If you’re tightening controls around corporate spending and payments, these guides can help:
Summary
A Bank Identifier Code (BIC), also known as a SWIFT code, is an international bank identifier that helps route payments and messages correctly. It includes a bank code, country code, location code, and sometimes a branch code for a specific branch or head office. Together with an International Bank Account Number (or an account number / bank account number and sort code in some countries), it supports accurate international transactions and reduces errors in cross-border financial transactions.