For making a domestic payment by credit transfer or direct debit, BIC code (Bank Identifier Code) and IBAN (International Bank Account Number) Required which has replaced National Sort Code (NSC) and Account Number as the main payment identifiers for all payments. For this resign you need to familiar with these information so you can complete direct debit mandates for paying bills, such as electricity or phone etc.
What is BIC Code of A Bank?
The elaboration form of BIC Code is Bank Identifier Code. BIC Code is the SWIFT Address assigned to a bank in order to send automated payments quickly and accurately to the banks concerned. For this, BIC Code is also known as SWIFT Code. It uniquely identifies the Bank’s name or financial Institution’s name, country, (and sometimes the branch) and head office location of the bank. BIC Code can be either 8 or 11 characters code.
BICs are often called SWIFT Code. So BIC (Bank Identifier Code) and SWIFT Code (Society for Worldwide Interbank Financial Telecommunication) is the same code.
What does a SWIFT/BIC look like?
Let’s we see a BIC Code Example:
Bank of America’s 8 character Swift Code is: BOFAUS3N
Bank of America’s 11 character Swift Code is: BOFAUS3NTRS
BIC Code or Swift Code analysis of Bank of America:
Let’s we analysis this above code. 1st 4 letter is institution or Bank Neme’s code. 5th and 6th letter is country’s ISO code. 7th and 8th letter is institution or Bank Neme’s head office location code and 9th to 11th letter/digit code is branch code (Optional code).
Here 1st 4 letter bank name: “Bank of America” and 4 letter code is BOFA
Here 5th & 6th Country: “United States Of America (USA)” and 2 letter ISO Code is US
Here This bank head office 2 letter location code is “3N” New York
This banks Branch office is “TAX REPORTING SERVICES” Branch and 3 digit branch code is TRS
SWIFT Code Description from Wikipedia
Analysis The Bank of America BIC code “BOFAUS3NTRS” characters for better understanding:
Suppose your Bank Name is Bank of America, TAX REPORTING SERVICES Branch , Bank Code BOFAUS3N , Branch code: TRS, Country: United States Of America (USA) and SWIFT code BOFAUS3N . Now let’s we alalysis this code.
BOFA – US – 3N – TRS
In Section 1 (the first 4-characters “BOFA”): This code is used to identify the institution’s global presence (all branches and all divisions around the world). For example, “BOFA” is used for “Bank of America ”
In Section 2 (5th and 6th characters “US”): This two-letter code represents the country code. and follows the ISO 3166-1 alpha-2 standard for representing country codes. For example, “US” for “United States Of America (USA)”.
In Section 3 (7th and 8th characters “3N”): These characters represent the banks head office location code (e.g. “3N” is the head office location code of the Bank or Institution.
If it is equal to “0”, then it typically is a BIC assigned for testing purposes (as opposed to a BIC used on the live network).
If it is equal to “1”, then it denotes a passive participant in the SWIFT network.
If it is equal to “2”, then it typically denotes a “reverse billing” BIC, meaning that the recipient of the message has to pay for the message.
In Section 4 (9th to 11th characters “TRS”): These last three characters form a “branch code” that refers to the particular branch of the institution. Here this Bank of America’s particular branch is “TAX REPORTING SERVICES“. If this section is omitted, then we have an 8-character swift code that is assumed to refer to the Head Office of the institution.
Use of BIC Code:
Actually, BIC codes are used to identify banks and financial institutions worldwide. They are used by the swift network to transmit wire transfers (money transactions) and messages between them. For international wire transfers, swift codes are always required in order to make transactions secure and fast. Anyone transferring money across international lines nearly always needs to use a SWIFT/BIC code, since it’s the way banks and money transfer services identify where to send money on a global scale.
Intermediary fees for bank transfers
Bank transfers that use the BIC/SWIFT system often go through 1-3 intermediary banks, and each of those can charge a fee. Between transfer fees, marked up exchange rates and intermediary fees, international transfers can really add up. Make sure to research all your options to make sure you’re using a transfer service that’s best for you – and your wallet.
BIC or Swift code is very important for All freelancer because if they want to withdraw money from market place, they need – Name, Banks Name, Bank Account Number, and Swift Code.
If you want to receive money from a foreign Bank or withdraw money from Freelancing marketplace, then you need this BIC or Swift Code.
As for example, If you want to withdraw money from Google Adsense in your Bank of America’s Account, then you need your Name, your Banks Name, your Bank Account Number, and Bank of America’s ’s Swift Code.
Name: Md. Mohi Uddin
Banks Name: Bank of America
Bank Account Number: 222 151 524 6826
Bank of America’s ’s BIC code or Swift Code: BOFAUS3NTRS
Hope you have got the clear idea about the use of SWIFT Code or BIC Code. From this above discussion, Hope, you have got the clear idea about BIC Code. As – what is BIC Code, How does it works, How to use BIC Code? Where to use BIC Code? If you want to more information about it, Join our Forum and discuess or Ask your Question here.