An IBAN (International Bank Account Number) is a standardized, internationally recognized code used to identify a specific bank account owned by a particular person or organization. An IBAN is an important part of transferring and processing a currency exchange transaction and depositing money securely in the recipient’s bank account.
IBANs are used to identify the recipient’s bank and their specific account and will verify exactly where transferred money should be deposited. Entering an IBAN allows for the faster and easier exchange and deposit of currency around the world.
IBANs are made up of several different areas. The first two characters are letters and specify the country that the bank account is located in. The next two characters are numbers and are used as “check digits” to verify the IBAN. The last part of the IBAN can be up to 30 characters long and identifies the specific branch and bank account number of the recipient.
The IBAN is mainly used within the European Union, although it is being adopted outside the EU.
The IBAN was originally adopted by the European Committee for Banking Standards (ECBS), and later as an international standard.
Money Transfer Glossary
When it comes to exchanging money, paying for your transfer, understanding exchange rates and more, it’s important to understand what all the details mean. But don't worry. We’ve got you covered with our complete Monito glossary and guide to the most frequent terms you’ll come across when you send or receive money internationally.
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