When making international transactions, you will receive a request to enter the Swift Code from the bank. So what is Swift Code? What is this code used for? To better understand this issue, please follow the article below of Viknews.com
What is Swift Code?
Swift Code is an abbreviation for Society for Worldwide Interbank Financial which means an identification code intended to identify a bank or financial institution in the world. Each bank or financial institution will have a separate Swift Code to distinguish it from the remaining financial institutions and banks.
In addition, Swift Code is also known as BIC, which is the abbreviation for Business Identifier Codes. Therefore the Swift Code or BIC code has the same meaning. Swift Code usually has 8 or 11 characters, each character has its own meaning: Bank name, country name, branch code.
Advantages of Swift code
With the inheritance of the advantages of modern technology combined with strong financial potential, banks in the world are gradually developing and expanding markets, meeting increasingly high demands of customers.
Therefore, Swift code has been constantly improved and upgraded to serve the needs of international users. The advantages of Swift code include:
– The speed of information transfer is fast, allowing users to handle a large number of transactions.
– The transaction time is shortened, saving the maximum cost of use.
Swift code always has to follow uniform standards all over the world. When using Swift code in banks, you can join the world banking community. Knowing information about Swift code will help your transaction be conducted quickly and more conveniently.
International convention on Swift Code code
In order to unify the form of Swift Code around the world, we have an international convention on the character arrangement of Swift Code. If any bank in the world does not comply with this law, their Swift Code will not be accepted.
International convention on Swift Code code is AAAA BB CC DDD. Which is:
– AAAA: The abbreviation in English of the bank name. This is a character that distinguishes banks and financial institutions around the world. With the first 4-character position AAAA requires the user to enter a character in the form of letters, from A to Z, without the use of numeric characters.
– BB: The abbreviated character in English of the country where the bank is located. Two BB characters are used according to ISO 3166-1 alpha-2. For banks in Vietnam, these two characters are always in Vietnamese form. Therefore, when looking at the Swift Code code, if it is found in the 5,6 positions, there is the word “VN” then it proves that this bank is in Vietnam.
– CC: Local identification code. These two characters allow users to enter both numbers and letters. CC codes are usually specified in VX format.
– DDD: A code that identifies a bank or bank branch participating in a transaction. This character allows users to enter numbers and letters.
Thus, Swift Code bank in Vietnam is in the form of AAAAVNXDDD. For example, BIDV branch of Cau Giay branch in Hanoi will have Swift Code code is BIDVVNVX215.
What is Swift Code used for?
Swift Code is a code snippet that requires you to enter when performing international transactions, payments, transfers and payments. As the information above, Swift Code will share with you informations about what the bank name is, which country the bank belongs to, where its branches are located and the specific address of each branch.
This will bring convenience to the transaction process of customers, help you perform transactions, make payments, transfer and receive money correctly, avoiding errors in the process of implementation. Besides, Swift Code will help the transaction time happen faster, minimize transaction costs for customers.
In Vietnam, the code Swift Code usually uses 8 characters. The 11-character type will have additional branch codes, while a bank usually has a lot of branches, making it difficult for users. So compared to the 11-character type, 8-character Swift Code code has many advantages, making it more convenient for users to perform.
According to the experience of customers in Vietnam, when transferring or receiving money from abroad to Vietnam, you should use Vietcombank or ACB because these two banks are quite convenient and the transfer buying rate is quite high if you want to convert into VND. In case you withdraw USD, after 10 days money will be returned to the bank for free. So, if you want to make a transaction in international scope, you need to know what Swift Code code is to avoid confusion with other banks or organizations in the world.