International Bank Account Number (IBAN),
Definition of International Bank Account Number (IBAN):
An IBAN, or international bank account number, is a standard international numbering system developed to identify an overseas bank account. The number starts with a two-digit country code, then two numbers, followed by up to third-five alphanumeric characters. However, an IBAN does not replace a bank's own account number, as it’s only meant to provide additional information that helps in identifying overseas payments. .
The IBAN number consists of a two-letter country code, followed by two check digits, and up to thirty-five alphanumeric characters. These alphanumeric characters are known as the basic bank account number (BBAN). It is up to the banking association of each country to determine which BBAN they will select as the standard for that country's bank accounts. However, only European banks use IBAN, although the practice is becoming popular in other countries.
A system of numbering that was created to categorize the bank accounts across the globe. European banks originated the system to make transactions between different countries easier to make, but more countries are implementing the practice.
How to use International Bank Account Number (IBAN) in a sentence?
- The IBAN also acts as a method of verifying that transaction details are correct.
- An international bank account number (IBAN) is a standard international numbering system for individual bank accounts around the world.
- An IBAN is used to identify an individual account involved in the international transaction.
- Banks in Europe originally developed the system to simplify transactions involving bank accounts from other countries.
Meaning of International Bank Account Number (IBAN) & International Bank Account Number (IBAN) Definition