Bank identifier code (BIC) vs SWIFT code: A guide for international businesses

BIC (Bank Identifier Code) and SWIFT codes are two names for the same thing.

They’re unique 8–11 character codes that identify a specific bank (and sometimes a specific branch) in the global financial system. When you send an international wire transfer, banks use these codes to figure out exactly where the money needs to go.

A good way to think about this code is like a postal code for banks. Without the right code, your payment can get delayed, rejected or sent back entirely.

The term SWIFT comes from the organisation behind the system: the Society for Worldwide Interbank Financial Telecommunication. It was created in the 1970s to standardise how banks communicate with each other about payments.

Today, BIC/SWIFT codes form the backbone of traditional international wire transfers. They’re secure and accepted almost everywhere. But they’re also tied to an older banking infrastructure that wasn’t built for the speed or transparency modern businesses expect.

While you don’t need a SWIFT code for every payment, some situations require them:

• International wire transfers. If you’re sending money from one country to another via a traditional bank transfer, the recipient bank’s SWIFT code is required
• Some high-value domestic transfers. In certain banking systems, SWIFT codes may be used even for domestic transfers, especially for large amounts
• Online marketplaces and payment platforms. Some global platforms ask for BIC/SWIFT codes when setting up international payouts, especially if they rely on traditional banking rails

If you’re regularly moving money across borders, these requests can add friction, especially if every new payment setup involves chasing down the right codes.