Glossary
IBAN
International Bank Account Number — the standardised format for cross-border payments.
An IBAN (International Bank Account Number) is a standardised format used to identify bank accounts across borders. Using the correct IBAN reduces routing errors and lowers the chance of a payment being returned by a correspondent bank.
In practice
How this works for a UK business
An IBAN is structured as a two-letter country code, two check digits, and a country-specific format for the bank and account identifiers — for example GB29 NWBK 6016 1331 9268 19 for a UK account. The check digits allow banks to validate the IBAN mathematically before a payment is sent, which is why a single mistyped character will usually be rejected at source rather than causing a misdirected payment.
IBAN is used across the European Economic Area and has been adopted by many countries outside Europe, including much of the Middle East and parts of the Caribbean and former Soviet states. Notably, the United States, Canada, Australia and most of East Asia do not use IBAN — these countries rely on their own local conventions instead (routing numbers, BSB numbers, sort codes or bank/branch codes), so a payment to those destinations needs the correct local identifier rather than an IBAN.
Where a destination does not use IBAN, providers still need equivalent structured information to route the payment correctly: an ABA routing number and account number for the US, a BSB and account number for Australia, or a bank code and branch code for many Asian markets. Collecting the correct combination for the destination is what actually determines successful routing, not the presence of an IBAN specifically.
Worked example
Pitfalls
Common mistakes
- Assuming every country uses IBAN and asking a US, Canadian or Australian beneficiary for one — those markets use routing numbers, transit numbers or BSB codes instead.
- Copying an IBAN with spaces or line breaks from an email or PDF, introducing a hidden character that fails validation only at the point of submission.
- Using an old IBAN after a beneficiary has switched banks, since IBANs are tied to a specific bank and account, not to the customer.
- Not asking for the account holder's registered name to match exactly — a valid IBAN with a mismatched beneficiary name is still likely to be queried or returned.
FAQs
Frequently asked questions
Get started
Speak with our team
Tell us about your business and the currencies you work in. We will respond within one UK business day.
We respond to enquiries within one UK business day.