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What does IBAN mean and what is its structure?
This abbreviation stands for ‘international bank account number.’ The creation and use of IBANs is mandatory for banks and other financial institutions that open accounts. This also applies to issuers of electronic currencies who generate electronic wallet numbers.
Any IBAN account number consists of letters and numbers, each of which has its own meaning. Different countries have their own rules regarding the length of this code. For example, in Ukraine, since 5 August 2019, this code contains 29 characters, while in Germany, the code consists of 22 characters: two letters and twenty digits. In other countries, the number can vary from 15 to 34. This difference is due to the characteristics of banking systems and account identification requirements.
The structure of the Ukrainian code includes:
- two letters UA at the beginning — country code;
- two check digits;
- six digits — bank code in the NBU system (MFO);
- nineteen digits — customer's bank account number.
In other countries, the code may be different, but the first letters always indicate the country where the account was opened: UA — Ukraine, DE — Germany, PL — Poland, etc.
Why do you need an IBAN?
The international number is used for quick and secure identification of participants in financial transactions. It is required for:
- making international transfers;
- receiving salaries or social benefits;
- paying for goods and services by bank transfer;
- crediting insurance payments.
The use of IBAN significantly reduces the likelihood of errors when entering details, as the system automatically checks the correctness of the check digits. In addition, a single standard allows transactions to be processed faster and reduces the costs incurred by banks in conducting them.
How to find out your IBAN through the GlobusPlus app
If you are a Globus Plus user or plan to become one, you need to know how to find out your details via the GlobusPlus mobile app. This can be done in a few simple steps, and in different ways.
Method 1:
- In the ‘Home’ section, find the card whose number you want to view.
- Go to the ‘Information’ section with the card details.
After that, the account number starting with UA will be displayed.
Method 2:
- Go to the ‘Other’ section or open the “Cards” menu from the main screen.
- Select the card whose number you are interested in.
- Go to the ‘Information’ tab with the details.
The mobile application allows you to generate a message with this number. To do this, go to the ‘Information’ section using the first or second method. Then find the ‘Account details’ tab and select the type of details:
- for transfers within Ukraine;
- SWIFT in dollars (USD);
- SWIFT in euros (EUR).
After that, a message will be generated that can be sent by email or social media, or simply saved to your device. This is convenient if you need to transfer data to an employer or contractor. The app also stores your payment history, which helps you quickly repeat the desired transaction.
Differences between IBAN and other bank account numbers
An IBAN is fundamentally different from a card number or SWIFT code. A card account number contains 16 digits and is required for payment card transactions. A SWIFT code only identifies the bank and its specific branch. Such accounts contain complete information about the customer's bank account.
Another important question that interests banking service users is whether the number changes when the card is replaced. No, because this code is linked to the bank account, not to a specific card. Even if your credit card has expired or you have ordered a new one because you lost the previous one, the IBAN will remain unchanged.
How to transfer money via IBAN
So, if you already know the IBAN you need, how can you transfer money quickly and securely?
To make a payment using international details, you need to:
- Select the account from which you plan to send money;
- click ‘Transfer’ and select ‘To an account at another bank’;
- check that the account number has been entered correctly in international format;
- enter the recipient's full name;
- specify the purpose of the payment;
- enter the transfer amount.
For international transfers, you need to take into account the difference in time zones and bank working hours. Such transactions usually take longer to process than domestic transfers. It is also important to check the commission for international transfers, as it may vary depending on the recipient's country and the amount of the payment.
Features of transferring money from a card to IBAN
If you want to know more about IBAN, what it is and how it works, it is important to understand the key differences between it and regular card-to-card transfers.
Unlike card-based P2P transfers, IBAN transactions usually take longer. However, they provide a higher level of security and reliability for transactions. An important advantage is the absence of restrictions on the amount and number of transfers, which is particularly relevant for business transactions.
When making a transfer, it is important to carefully check that all the details have been entered correctly. Even a single digit error can lead to a delay in payment or its return to the sender. In addition, some banks impose additional requirements for transfers using these details, such as the need to confirm the transaction via SMS code or a special token for large amounts. All these measures are aimed at increasing the security of transfers and protecting your funds.
