IBAN discrimination is broken down and explained

The IBAN format mentioned below is used in the United Kingdom of Great Britain and Northern Ireland and the Bailiwicks of Guernsey and Jersey. Although not on the mainland, the United Kingdom’s other overseas territories, Gibraltar and the British Virgin Islands, also follow this pattern. There are different standards in place for all the other British Overseas Territories. It is not yet required to use an IBAN when making domestic payments inside the United Kingdom. In the United Kingdom, U.K. EU IBAN is only needed for the following payment methods:

These components make up an IBAN:

The two-character International Organization for Standardization (ISO) designation for a country. Great Britain, in this instance.

  • Check The two numbers that follow the country code are called “digits.” They are uniquely computed using an algorithm that checks for and prevents typical errors in the IBAN.
  • The bank code, which consists of the first four digits of the Bank’s B.I.C. code, may be used to identify the issuing financial institution positively. No matter where they’re located, the Bank’s branches will all use the same bank code. S.W.I.F.T. is responsible for registering B.I.C.s (as the Registration Authority for ISO 9362). A BIC code may be obtained via a sort code verification service.
  • The sort code consists of six digits and is used to identify the financial institution and the specific branch within the United Kingdom. B.P.S.L. is responsible for registering the sort codes. Therefore, the sort code is not shown as three independent two-digit numbers separated by hyphens in U.K. EU IBAN

Verifying the IBAN Number

  • For a UK IBAN, there are two possible checks to do.
  • The IBAN is first checked using the MOD97 algorithm applied to the Check Digits.
  • The domestic sort code and account number combination may be used for the second tier of validation.
  • To see whether the sort code is valid, we may look it up in our database of Bank and branch codes database.

So, what does this imply for shoppers?

This implies that sending money between Euro accounts inside S.E.P.A. is as rapid, simple, and inexpensive as sending money between Euro accounts in the same nation. One significant advantage is that you need a single payment account to send and receive euro transactions.

If you’re Irish and take a job in another S.E.P.A. member state, your salary will be deposited into your Irish bank account just as if you were still at home. In addition, you may use your Irish bank account to set up a direct debit with a utility provider located in another E.U. member state.

Giving your Irish IBAN to your employer or utility company is all that is required. It is also possible to utilise an Irish bank account for all euro payment credit transfers and direct debits if you have a payment account in another S.E.P.A. countries but reside in Ireland. Simply supply your Irish employer or energy supplier with your total International Bank Account Number (IBAN), beginning with the appropriate country code (for example, “DE” for a German bank or “G.B.” for a U.K. bank).