You have probably heard the word IBAN many times, but do you really know what it means and what it is used for? Today we tell you everything you need to know about the IBAN.
The IBAN is a code consisting of 24 characters and two letters representing the country of origin of the account. The use of the IBAN code facilitates the automation and control of collections and payments.
IBAN stands for International Bank Account Number, a bank code that helps us to identify each current account in the Eurozone. It was created in 2014 by the European Banking Standards Committee and replaced the CCC, Current Account Code, with which you are perhaps more identified. We could say that the IBAN is the evolution of the CCC.
Now that you know what the IBAN is, we show you how to identify it:
The IBAN code is an alphanumeric code consisting of the following parts:
First 4 digits: The first 4 digits are made up of the country code of the country from which the account originates, in Spain it would be ES, plus a control code.
Next 20 digits: The remaining digits are those corresponding to the account number, which is composed of the bank code, branch code, check digit and the customer’s account number.
What are the benefits of the IBAN code?
We can find many benefits thanks to the IBAN code, let’s see which ones:
It improves the efficiency of transactions: IBAN speeds up and streamlines money transfers from one bank to another, no matter where they are located.
Eliminates errors: It is a complete code which is designed in such a way that no mistakes can be found.
Security: by having little, if any, margin for error, users can be more confident when making their transfers.
Automated processes: With IBAN, we get more speed and efficiency, as processes are fully automated.
It provides us with a standard payment system throughout the EU.
In short, the IBAN code has provided us with effective solutions to the existing problem in the European Union, since the systems that identify accounts only focused on national accounts.
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