You’ll likely be asked for a BIC code whenever you want to send money abroad. Many people don’t understand this code and make mistakes, but we want to stop that. We’ll explain everything about BIC, including how it works, looks like, and how you can find the correct one for your transfer.
What Is A BIC?
It’s an abbreviation for Bank Identifier Code (BIC). It’s a unique number that global financial institutions use to identify themselves on the SWIFT network, which is why it’s also called a SWIFT code.
SWIFT is an abbreviation for the Society for Worldwide Interbank Financial Telecommunication. It is a global communication network that banks use to send and receive instructions. Every financial institution connected to this network is assigned a unique code, just like every smartphone owner has a unique phone number.
What Does A BIC Look Like?
It consists of 8 to 11 characters in this format: AAAABBCCDDD
- The first four characters (AAAA) identify the banking institution. It’s usually an abbreviation of the bank’s name.
- The next two characters (BB) signify what country the banking institution is located in.
- The next two characters (CC) identify the bank’s head office in that country.
- The last three characters (DDD) identify the specific branch. This part is optional, so you’ll not always see it in a BIC.
Here’s an example to illustrate: CHASUS33TMG.
- CHAS stands for J.P. Morgan Chase.
- US identifies the United States of America, where J.P. Morgan Chase is based.
- 33 identifies Chase Bank’s New York head office.
- TMG identifies a specific Chase branch in the state of New York.
Where Can I Find My BIC?
There are various ways to find BIC codes for banks. They include:
- Bank statements. If you request a formal banking statement, you can find your institution’s code printed at the top or bottom.
- Call customer service. You can call your banking provider’s customer service line and ask for the specific SWIFT code for your branch. The support agent should be able to provide an accurate answer.
- Official website. You can check your banking firm’s official website for a list of SWIFT codes for all their branches.
- Third-party websites. Many websites specialize in aggregating BICs for different banks and displaying them to users. You can consult such websites to find the one you need.
- Ask the recipient. You can always ask the intended recipient of your foreign transfer for their bank’s SWIFT code.
How Do BIC Codes Facilitate Money Transfers?
It facilitates money transfers via the SWIFT network. Whenever you initiate a transfer, your bank contacts the recipient’s bank through its BIC. It instructs the recipient’s institution to deposit a specific amount in their account. Once the deposit is confirmed, your bank deducts the equivalent amount from your account.
It works similarly if you’re the recipient of a foreign transfer. The sender’s financial institution contacts your institution via its BIC. It instructs your bank to deposit a specific amount into your account. Once the deposit is confirmed, the banking provider deducts the equivalent amount from the sender’s account.
Is There A Fee For SWIFT Transfers?
Yes, banks usually charge up to $50 for a SWIFT transfer. The recipient’s bank may also collect an additional processing fee from the money you send.
How Long Do SWIFT Transfers Take?
It takes up to five working days for the transaction to be processed. Sometimes, the transfer may go through several intermediary banks before arriving at the final destination, lengthening the time.
SWIFT is a secure and reliable option but not ideal for urgent transactions.
