IBAN and SWIFT

What are IBAN and SWIFT?

IBAN (International Bank Account Number) and SWIFT (also known as BIC – Business Identifier Code) are the international standards for identifying bank accounts and financial institutions. While a local account number only works within national borders, IBAN and SWIFT are necessary for e-invoices to be exchanged and paid correctly across international borders.

How it works

The IBAN is an extension of the national account number, starting with a country code (e.g., GB for the UK). The SWIFT code acts as an electronic address for the bank. When this information is included in the structured data of an e-invoice, the recipient's bank can automatically process the payment without manual entry, reducing fees and eliminating typing errors.

Importance for e-invoicing

In modern e-invoicing formats such as Peppol BIS 3.0, it is crucial that IBAN and SWIFT are placed in the correct fields within the XML file. Many international companies use automated payment systems that reject invoices if these codes are missing or incorrect, as this prevents automatic clearing through networks like SEPA.

Global payment precision

Correct use of international banking data ensures that payments land in the right account on time. By automating the integration of this data into the invoicing flow, manual processes—often the source of delays in international trade—are removed, strengthening liquidity and cooperation between partners.