Intermediary Bank Information vs. IBAN: What’s the Difference?
Intermediary bank information and IBAN are two important terms in international money transfers. However, they are distinct and serve different purposes.
Intermediary bank information identifies the bank that acts as a mediator between the sender’s bank and the receiver’s bank. The intermediary bank is responsible for processing and forwarding the payment to the receiver’s bank.
IBAN stands for International Bank Account Number. It is a standardized international number system that identifies bank accounts in cross-border payments. Over 70 countries, including all the members of the European Union, use IBANs.
Here is a table that summarizes the key differences between intermediary bank information and IBAN:
| Characteristic | Intermediary Bank Information | IBAN |
|---|---|---|
| Purpose | Identifies the bank that acts as a mediator between the sender’s bank and the receiver’s bank. | Identifies the bank account where the money should be deposited. |
| Format | Varies from country to country. | Up to 34 alphanumeric characters, including the country code, check digits, and Basic Bank Account Number (BBAN). |
| Usage | Required for international money transfers. | Required for international money transfers in most cases. |
Examples:
- Intermediary bank information:
Bank name: JPMorgan Chase
Bank address: 270 Park Avenue, New York, NY 10017, USA
SWIFT code: CHASUST33
- IBAN:
GB12345678901234567890
When to use intermediary bank information
In all cases, the sender’s bank requires intermediary bank information to route the payment to the correct intermediary bank for international money transfers.
When to use IBAN
Most cases require the use of IBAN for international money transfers. However, there are some exceptions, such as when transferring money to a country that does not use IBANs.
Benefits of using IBAN
IBANs offer a number of benefits, including:
- Accuracy: IBANs ensure that the correct bank account receives international payments.
- Speed: IBANs can help to speed up international payments by reducing the need for manual processing.
- Security: IBANs can help to improve the security of international payments by making it more difficult for fraudsters to redirect payments to incorrect accounts.
Conclusion
Intermediary bank information and IBAN are both important terms in international money transfers. Intermediary bank information identifies the bank that acts as a mediator between the sender’s bank and the receiver’s bank. The IBAN identifies the bank account where the money should be deposited. In most international money transfers, both intermediary bank information and IBAN are required.
Additional tips for international money transfers
- Be sure to compare the fees and exchange rates offered by different banks and money transfer providers before sending a payment.
- Double-check the recipient’s bank account information before sending a payment.
- If you are sending a large payment, consider using a wire transfer. Wire transfers are typically more expensive than other money transfer methods, but they are also the fastest and most secure.
