What is an IBAN Number?If you’re planning to make an international payment within Europe, you’ll usually need your recipient’s IBAN to make sure the money arrives safely
An IBAN number is an international bank account number, which is used for accounts held in the EU, as well as Norway, Switzerland, Liechtenstein and Hungary. It’s used as standard when banks around Europe need to process international payments, to make sure your money reaches its destination safely and quickly.
Your IBAN is a unique identifier for your own bank account, and contains pretty much all that is needed to identify your country, bank, and your exact account, in just a few numbers.
What does an IBAN look like?
IBANs are written using a standard format across all of the countries that use them. They contain all of the information needed to locate one specific bank account from the millions of accounts held throughout Europe.
Have a look at this IBAN example to see how your own international bank account number is constructed.
IBAN example: GB29HBUK40972924681012
This example is made up of several different pieces of information. You can see them more easily when we split out the IBAN like this:
GB – 29 – HBUK – 409729 – 24681012
Let’s break these elements down:
- GB – country code
- 29 – these digits are used to validate an IBAN and vary from account to account
- HBUK – bank identifier, in this case HSBC, UK
- 409729 – sort code
- 24681012 – account number
Your bank account number and sort code will be the same in your IBAN as they are when you use them in the UK.
IBAN numbers can contain up to 34 letters and digits, depending on the country in which the account is held. However, the structure is always similar to that set out here.
Because IBANs follow a set structure, it is possible to generate your own IBAN if you don’t know it already. You can use the IBAN calculator provided by your own bank, or an alternative IBAN calculator tool.
You can also find your own IBAN on a bank statement, by calling into a branch to ask for assistance, or by logging into your regular bank’s online banking.
Check an IBAN number
If you’re not sure whether the number you have is the correct IBAN for your account, there are also IBAN validation tools available. You’ll need to enter the number you have, and the site can check if this is an active IBAN.
In some cases, you can even enter a partial number, along with question marks to show missing digits, if you don’t have the full number available to you. The system will be able to automatically complete whatever is missing as it validates the number.
Instant Worldwide Payments
Sending and receiving payments between countries is quite a challenge. International wires are expensive while opening a foreign bank account can take weeks and not always possible. iPaytotal offers an alternative. We make it simple to pay suppliers, employees, freelancers, affiliate marketers to and accept payments directly from your user’s clients.
Opening an account with the iPaytotal takes just a couple of days. Once set up, you can instantly send money to any country in the world. Your iPaytotal account is virtually global so you need one account in order to collect, hold and send payments in multiple currencies and channels.
Your account comes with a virtual IBAN number. This makes it similar to having a European bank account where you can effortlessly send and receive funds in euros.
LOOKING FOR AN IBAN
ACCOUNTThe virtual IBAN account can be opened from anywhere in the world without
visiting a bank and without registering within the territory of the European
Long Term Solution
Key benefits of Virtual IBAN accounts include:
- Fast account set up
- Available in 24 currencies
- Improved payments acceptance, settlement times and reconciliation because payments are made in the name of your underlying client
- Reduced AML and KYC risk as a result of an end to end transparency and clear segregation of funds
- Local clearing capability plus cross border payments through the SWIFT network
- Same-day settlement for SEPA payments
- Ability to leverage the Banking Circle network to make and receive payments instantly
- Payments and FX API connectivity
- Access to an award-winning FX platform via the web, tablet, and mobile
What is a virtual IBAN account?
A virtual IBAN is an IBAN (International Bank Account Number) reference issued by a bank to allow incoming payments to be rerouted to a different, physical bank account. Virtual IBAN accounts can be used to send and receive payments worldwide, allowing businesses to extend their value chain to provide settlement services to its global customers. From the customer’s point of view, a virtual IBAN works in exactly the same way as a regular IBAN account – once they make a payment, their funds will end up in the physical bank account linked to the virtual IBAN.
What are the benefits?
Accepting and sending international B2B payments can often result in companies incurring a large number of transactional fees. Virtual IBANs offer companies the same facilities as a traditional settlement account, however, they reduce costs involved in opening and managing a physical account.
Many traditional providers will try to push full packages on new clients, which include a variety of services they do not require, including credit cards, global payment services, and insurance. Due to this, the whole process can become a serious headache for organisations, meaning they have to invest a lot of time and effort into what should be a simple process. A virtual bank account allows access to payment services without the cost and complexity of a full business bank account. Potential administrative costs are further reduced through the use of virtual IBAN accounts as the whole system aims to facilitate the reconciliation process, allowing businesses to carry out business with ease on a global scale.
Virtual IBAN accounts provide a wide variety of benefits for FX and payments businesses and their customers. The use of these accounts allows FX and payments organisations to control a master IBAN account where they can create and allocate a segregated virtual IBAN account to each of their customers, aiding settlement and reconciliation. A virtual IBAN provides payments businesses with a multi-currency, multi-jurisdictional banking solution without the need for several different banking relationships.
For many international companies, international banking is time-consuming, frustrating, expensive. Without a non-resident bank account in Europe, international payments can take almost a week. And due to the sprawling systems and thousands of employees at traditional banks, the costs are high.
WITHOUT AN IBAN Account, YOUR COMPANY:
- Cannot open a bank account in Europe
- Cannot collect or send domestic wire transfers (SEPA Payments)
- Pays SWIFT fee of €30
- Pays currency conversion cost of 3-6%
- Cannot access EU payment gateways
- Suffers the frustration of bureaucratic banking processes
- Cannot collect payments from marketplaces like Amazon
- Waits 2-5 days per transfer
With a virtual IBAN Account, you can make and receive payments instantly. Having a non-resident European bank account allows you to centralize incoming and outgoing payments, which makes reconciliation easier. You spend less time on manual processes and the cost of operating the bank account itself is reduced because incoming funds are routed directly to your master account, rather than being held in an IBAN Account.
WITH IPAYTOTAL, YOUR COMPANY:
- Can receive SEPA payments from 35 EU countries for free in 2-12 hours
- Can make SEPA payments to 35 EU countries
- Saves €30 SWIFT fee and +80% on Foreign Exchange (FX)
- Can take advantage of FX conversion automation
- Can use its IBAN to integrate with marketplaces and payment gateways
- Can access premium brokers to make global payments in 138 currencies
- Gets Instant notifications of incoming payments
- Can take advantage of online onboarding
Open an IBAN account without any hassle
Register for an account
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LOOKING FOR AN IBAN ACCOUNT ?
The virtual IBAN account can be opened from anywhere in the world without visiting a bank and without registering within the territory of the European Union.