What a BIC identifies
BIC means Business Identifier Code under ISO 9362. Swift is the registration authority. A BIC can identify a financial or non-financial organization; it is broader than a bank-only identifier. It has eight characters, with an optional three-character branch identifier.
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| Position | Meaning |
|---|---|
| First four characters | Business party prefix |
| Next two letters | Country code |
| Next two characters | Business party suffix |
| Optional final three characters | Branch identifier |
The optional branch element can distinguish a location, department, service or unit. Use the beneficiary bank’s instructions rather than guessing a branch code. A BIC does not prove that an organization is connected to the Swift network or that it is legitimate.
Keep organization, account and invoice details separate
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| Detail | Purpose and check |
|---|---|
| BIC / SWIFT code | Identifies the relevant organization or branch. Use the code in the bank’s receiving instructions. |
| IBAN or other account number | Identifies the beneficiary account. Confirm the format required for the country and transfer route. |
| Beneficiary name | Names the intended recipient. Use the name required by the receiving bank. |
| Invoice or payment reference | Explains the business reason for payment. Use the reference the supplier needs to apply the funds. |
IBAN means International Bank Account Number. Countries that use it have specified national formats in the ISO 13616 registry maintained by Swift. Not every international payment requires an IBAN. Follow the sending and receiving banks’ instructions for the actual route.
An invoice number cannot replace an account number, and a BIC does not supply missing account details. Resolve any unfamiliar field with the bank or provider before submitting the instruction.
When a supplier sends new bank details
Imagine a supplier emails revised instructions for a $980 invoice. The message includes a plausible BIC, an account number and an urgent request to pay today. Checking the code’s format would not tell you who sent the change or who controls the account.
- Pause the change. Contact the supplier through a previously verified channel or an independently obtained number, not the number supplied in the change request.
- Confirm the beneficiary, bank details, invoice and reason for the change with the appropriate authorized contact.
- Record the amended instructions through your normal approval process, including who verified them and when.
- If details remain inconsistent, keep the payment on hold while the supplier and bank resolve the discrepancy.
Verify the change even when the amount and invoice number are correct. Those details may appear in a compromised email thread. Urgency does not replace confirmation.
Check the instruction before sending
Record the recipient name, account identifier, BIC if requested, amount, currency and invoice reference. Add intermediary-bank details only if the bank requires them. Keep the source of the instructions and verification record with the payment approval.
Check for missing fields. The bank may still reject or delay the transfer, and charges or currency conversion can affect the amount received. Confirm those details and any additional requirements with the provider handling the payment.
If the payment is delayed or rejected, use the bank’s transaction reference and support process to investigate. Do not repeatedly resend it just because an online BIC lookup returns a matching name.