What Is a SWIFT Code?

The "SWIFT code" you often encounter when making an international transfer is actually an identity used for banks to recognise one another. In this guide we explain what a SWIFT code is, its relationship with the BIC, and the difference from SEPA.

The relationship between the SWIFT code and the BIC

What is called the "SWIFT code" in everyday language is technically the BIC (Bank Identifier Code). Both refer to the same 8- or 11-character code. The only difference is in the naming: BIC is the name of the ISO 9362 standard; SWIFT is the name of the global network (organisation) that operates these codes and secure interbank messaging. So "what is my bank's SWIFT code?" asks the same question as "what is my bank's BIC?". For details, see the Are BIC and SWIFT the same and What is a BIC pages.

What is the SWIFT network for?

The SWIFT network enables banks worldwide to exchange messages in a standard and secure way. In an international transfer, the sending bank delivers the payment instruction to the recipient bank over SWIFT (through intermediary banks if needed). This network is global and multi-currency; that is why it is used for non-SEPA countries and non-euro currencies.

The difference between SWIFT and SEPA

While SWIFT is global and multi-currency, SEPA is euro-only and regional. On SWIFT transactions, intermediary (correspondent) bank charges and an exchange-rate margin can arise; in SEPA, on euro→euro transactions there are none of these. That is why SWIFT is generally more expensive and slower. Because Turkey is outside SEPA, euro transfers between Turkey and Europe are made via SWIFT. For a comparison of the two methods, see the SEPA or SWIFT page.

Summary

A SWIFT code is the code that identifies a bank in international payments, and its technical name is the BIC; the two are the same in practice. The SWIFT network makes global, multi-currency transfers possible. Unlike SEPA, SWIFT is generally more expensive and slower; Turkey transfers are made via SWIFT today.