What is BIC? Meaning & usage explained

What a BIC is can be explained in simple terms. BIC is the abbreviation for “Business Identifier Code”. It is a standardised international bank code that facilitates payments.

What the BIC is: Simply explained

Each bank is assigned a “Business Identifier Code” consisting of either eight or eleven characters.

• The BIC is often also referred to as the SWIFT code.

• This is because it is managed by the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

• The primary purpose of the BIC is to identify bank transfers and payments and to ensure that they are made quickly and without errors.

• It is therefore used as the standard identification number for banks and financial institutions in many countries around the world.

How to use the BIC

The BIC plays an important role especially for international bank transfers and payments.

• If you want to send a bank transfer or other payment to a bank or financial institution abroad, you usually need the BIC of the recipient bank.
• You can either ask the bank for this or look it up on various websites on the Internet.
• The BIC is usually used together with the IBAN (International Bank Account Number).
• The IBAN is also used to identify bank accounts and payments