When creating an invoice for payments to a foreign bank account, understanding IBAN and SWIFT codes is crucial.
When using MyInvoiceOnline.co.uk for invoicing, you can conveniently configure payments to foreign countries in the Bank Account section by selecting the Show IBAN option. This ensures a smooth invoicing process for international transactions.
IBAN, short for International Bank Account Number, is assigned to every bank account to facilitate cross-border payments.
The IBAN structure includes:
- 2 characters: Country code
- 2 characters: Control numbers for error prevention
- 20 characters: Bank code and bank account number
Bank account numbers within IBAN have two variations: electronic (without spaces) and written (with spaces after every 4 characters for clarity).
SWIFT, which stands for the Society for Worldwide Interbank Financial Telecommunication, provides unique BIC (Bank Identifier Code) to banks.