International Bank Account Number

The IBAN ( International Bank Account Number german, German International Bank Account Number ) is an international standard for bank account numbers. The notation is described by the ISO standard ISO 13616-1:2007 Part 1.

• 5.1 IBAN structure in different countries
• 5.2 Generation of the IBAN

History

• IBAN structure is registered with SWIFT
• Country participates in SEPA
• Euro is the national currency

The IBAN was developed to make payment systems more uniform. The international standardization of the structure of audit and account information (bank account identification plus identification) to develop integration and automation potential for data exchange between banks in different countries. It should also be beneficial for businesses and individuals internationally standardized information on the bank account as possible sources of error.

At the time, driven by the U.S., which have even the IBAN but not implemented to date, the countries of the European Union are currently the driving force for the use of the IBAN. Outside of Europe, take continuously further states this notation, especially in the Mediterranean, the Middle East and in Central and South America.

The ISO has designated in January 2007 SWIFT as the registry for national IBAN formats.

The conventions for IBAN structure were made under the premise that it is not practical or feasible to establish an internationally harmonized method for the identification of bank accounts. The notations for bank accounts in different countries vary considerably; For example, common in Germany separation of bank code for identifying the bank and bank account number to identify the account is not even spread throughout Europe. According to the notation of the IBAN was designed to reflect the different local numbers for bank accounts and to enable a transformation of the different local bank account data in a uniform IBAN structure. ISO 13616-1:2007 Part 1 defines the details of the composition or structure and to calculate and verify the check digit described below.

Demarcation from other systems

While the IBAN is basically defined as a globally unique name of an account, this function can not yet be used for all accounts in the world. Background is currently carried out only for 61 countries and territories definition of IBAN structures (July 2012). The ECBS expects that the process of global acceptance can take five to ten years. At least until then, it is necessary to use the current representation of database connections (BIC and account number) ISO 9362 in countries with no IBAN for the safe handling of international payment transactions on.

Even after that it will stay longer in the use of BIC and IBAN, because the IBAN contains the current systems do not generally all the necessary routing information, which are defined by BIC. Considerations, such as at least in Europe the systems would adapt to then forgo the BIC may have already been hired. By opting for an IBAN - duty 2012 it was decided that from 1 February 2016, the use of the BIC does not apply to SEPA credit transfers.

Use

The IBAN is currently mainly in payments within the European Union use. This applies both to the data carrier exchange process as well as for payments with forms ( payment forms ).

EU transfers

Within the European Union the use of the IBAN is one of the prerequisites for the implementation of EU transfers, which are executed by the banks at the same costs as transfers within a country ( Regulation (EC ) No 924/2009, formerly 2560/2001 ). The EU Transfer was created in the context of the introduction of the euro and has been in force since 2003. Binding the EU transfer is only for amounts in euro ( EUR ) as well as for those currencies of members who have extended the policy to their retained national currency ( de facto only the Swedish krona ( SEK) ).

With the introduction of EU-transfer, there was no electronic payment system that allows alone with a pan-European IBAN payment - hence the BIC must be the valid international SWIFT payment system specified in the EU transfer in addition to the IBAN. SWIFT does not define a data format for information transfer, the evaluation of accounting information during a transfer is for the two banks involved.

SEPA Credit Transfer

Building on the EU Transfer the creation of a Single Euro Payments Area, SEPA (Single Euro Payments Area) it was decided that completely replaces the national payment systems from 1 February 2014. The aim is to standardize payment systems, so no difference between a national or pan-European settlement there. For this purpose, a new XML-based, SEPA data format was developed. Since January 2009, banks are required to SEPA credit transfers and offer a SDD since November 2009. Since SEPA Credit Transfer data can also be transported via SWIFT, the query of the SWIFT BIC next to the IBAN is also common here.

To further replacement of national payment systems, the Central Credit Committee (CCC; Today The German banking industry ) designed for the transfer of financial messaging data, the new payment protocol EBICS (Electronic Banking Internet Communication Standard ), which since January 1, 2008 by changing the Dial-Up Agreement all German banks should be supported. With EBICS Transfer information can be used equally by IBAN and SWIFT -BIC or by account number and sort code.

Domestic bank transfer with IBAN

Switzerland's banking institutions recommend since 2009 the general transition from the previous account information on IBAN. Although the German banking industry, the SEPA Credit Transfer is provided compulsory only for cross -border traffic, including domestic destinations are running with it. If the Bank has not yet been converted to a uniform clearing ( with EBICS ), while the transfer can be done technically in different ways - as a consequence transfers with SEPA / IBAN may appear in the account statement as an international transfer, which also beyond 50,000 euros uncertainty is whether the charges will be billed the same, and besides allowed the SEPA Credit Transfer ( transitional to 2012) nor a settlement within three instead of one working day. Since the end of 2010, the obligation to support the old protocols ( FTAM ) accounted in Germany, a general standardization of the technical infrastructure was expected from 2011, which avoids such results.

A Europe-wide harmonization of payment systems has been provided for the year 2012, since then SEPA credit transfers can replace national transfers. The prerequisite is that the SEPA standardization be extended to all national payment schemes (eg, payment by check or credit card payment ), in order to switch off the current national payment methods can. The IBAN results thus in all member countries a valid account for the national and pan-European payment transactions. After a transitional period to 1 February 2014, the old national bank accounts are to be turned off.

IBAN mandatory

On February 1, 2014, the IBAN replaced in the EU, the existing national account numbers on remittances.

The European Parliament had called for an end to the national process with an end date of December 31, 2012. The German Federal Bank supported this proposal, although there was strong resistance in the German banking institutions. The draft proposal of the European Commission of 16 December 2010 called 2013 as the date for the IBAN mandatory for credit transfers and direct debits for 2014. The transitional periods should be 12 or 24 months.

In addition to technical concerns that held the Bundesbank solvable by the end of 2011, was led against the IBAN duty especially that the IBAN format overcharge customers. The ability to omit BIC IBAN for transfers has not been taken at a meeting COGEPS ( contactgroup on euro payments strategy ), because in some countries, the IBAN is not sufficiently contains routing information for clearing. Because in countries like Germany and Austria IBAN contains the established national bank code, IBAN information are there in each case sufficient for the cash clearing of domestic transfers, but only STUZZA had defined for 2006, a process in Austria.

In Switzerland, the banks have changed since 1 January 2006, together with the account numbers to IBAN format with 21 digits. During the transition period, the old account numbers have continued (with up to 16 digits ) accepted. Since 1 January 2010 the use of the IBAN of the beneficiary is mandatory - Banks may remitter without IBAN reject, however, make a lot of banks not exercise this right. For domestic transfers, the routing is further performed on the BC number, which is also coded in the IBAN. For online transfers, it is customary to fill when entering the IBAN field automatically with the BC number.

To European Parliament, Council and Commission have agreed on 20 December 2011 and officially confirmed on February 14, 2012 About the IBAN mandatory. Until 1 February 2014, the conversion of national payment systems to IBAN for transfers and direct debits had to be completed, however, re- transition periods in Germany to August 1, 2014 and February 1, 2016, see SEPA. The use of the BIC accounted for domestic transfers with IBAN also from 1 February 2014 for cross-border EU transfers from February 1, 2016. Resistance of the German banking industry accounted for by a compromise, according to which the EFT procedure with right of return under the German model is included in the SEPA standard, a template for an extended payment services directive is to be submitted by 1 November 2012. The revised " Direct Debit Scheme Rulebook " of the SEPA Direct Debit scheme now includes two versions - the " SEPA Direct Debit " (SEPA Core Direct Debit) and "SEPA Direct Debit " (SEPA B2B Direct Debit). At the core direct debit, and only there, there is the possibility of re-booking within 8 weeks (56 days) without giving reasons. In both variants, but a request for SEPA returns load within a period of 13 months after the debit date is possible with evidence of an absent confiscation order. In the same Regulation EC 260/2012, which calls for the use of the IBAN, the takeover of the SEPA Direct Debit is required on the same date February 1, 2014.

At the request of the United States, the IBAN compulsory in Turkey was introduced at the beginning of 2010.

Spelling

• In paper-based processes, such as the expression of statements or in the presentation of bank bills on the signs of the IBAN for readability divided into four groups are listed.
• For electronic processes to separate the characters according to ISO 13616-1:2007 Part 1 is not allowed. With electronic transactions, however, is only the communication of computers with each other meant, but not the computer communications with people.
• For the man-machine interface, so the display on a screen or entering into an electronic form, the four grouping should be used. The requirements of the ISO standard does not formulate this explicitly, but are thought of as the intention.

Composition

The IBAN is made up as follows:

• 2- digit country code according to ISO 3166-1 (letters )
• 2-digit checksum check digits according to ISO 7064 (consisting of digits)
• Maximum 30 - digit account ID (letters and / or numbers)

The IBAN can contain up to 34 digits, but in most countries it is shorter.

Examples of the German D - A - CH - States:

Shorter account numbers are padded on the routing number with leading zeros to the number of digits required in each case. As - simple manual - fill- in the German states in these scenarios: After two digits country code and two places new checksum routing number (D, A) / BC number (CH) is from the 5th place left-aligned ( " starting at the left " ) entered, the account number ( including sub- account number ) then right-aligned ( starting from the right "backwards" ) from the last place - and what then remains open in places receives per vacancy is always a zero. However, this applies only simplified, but the banks are obliged to provide the correct IBAN of the account holders are available.

IBAN structure in different countries

Where is:

AD, BE, ... country code pp double-digit checksum b instead of the bank code d account type k instead of the account number K control numbers r region code s instead of the Store Number ( Branch Code / code guichet ) X other features The IBAN without country code and without the two-digit checksum is also referred to as BBAN ( Basic Bank Account Number).

Generation of the IBAN

The ECBS warns that the creation of an IBAN must be done exclusively by the banking institutions. This based on the fact that there are several variants for the formation of the IBAN from conventional bank routing number and account number, for example, in the formation of the checksum or the elimination of branch numbers.

To keep the changeover costs low, the German Bundesbank and the German banking industry have (formerly CCC) agreed on the conclusion of a new payment agreement ( " Agreement IBAN Rules" ), which with effect from 1 January 2013, the owner of a German bank code required to disclose the formation rules of the IBAN. The formation rules are summarized and published the variant as an additional field in the bank sort code file from the 3rd June 2013. The formation of the German IBAN with the standards compliant checksum shown above was given the number 0000 00 and the loss of a bank code number 0001 00 ( version 1 to version 0). With the first release of 47 beyond that exceptions have been documented, a description of the special rules comprises 150 pages and just for the big banks up to 20 pages.

Validation of the checksum

As part of IPI and the check digit was ECBS 7064 mod 97-10 set to the standard ISO and adopted by the national standardization bodies of the banks. The checksum is in the range "02 " to " 98 ", but came through different calculations with various financial institutions and " 00", " 01" and " 99 " in front. The corrections are largely completed. However, it can not be excluded that continue to exist IBAN with the "wrong" check digits.

Example:

IBAN: DE68 2105 0170 0012 3456 78 Conversion: 2105 0170 0012 3456 78DE 68 Modulo: 210501700012345678131468 mod 97 = 1 Calculate the checksum

By reversing the validation method, it is possible to generate properly validate IBAN regarding the checksum. The ECBS explicitly points out that only the banks give out even correct IBAN. If one uses a selbsterrechnete IBAN, so you risk, at worst, the loss of his transfer. Even the ISO 13616 specifies that only the financial institutions may generate an IBAN. The background is that the current account number is not always right justified inserted into the IBAN, but occasionally offset by two points - the last two digits then correspond to the previous sub-account.

A possible algorithm for calculating the check digit is:

Example:

IBAN: DE00 2105 0170 0012 3456 78 Conversion: 2105 0170 0012 3456 78DE 00 Modulo: 210501700012345678131400 mod 97 = 30 Subtracting: 98 - 30 = 68 Online validation

On the internet are countless ways to find validation. Some are country-specific, while others are specific to the respective bank. All non- specific validation check by the method described above, with some additional country-specific tests involve, for example, a consistency check of bank and account information.

The UN CEFACT TBG5 has a free IBAN validation service in 32 languages ​​for all 57 countries published that have implemented the IBAN standard. Also the Javascript source code of the validation process is available.

In examining the IBAN DE68 2105 0170 0012 3456 78 (see above example ) is returned with this service is that the IBAN appears to be correct. This is because the country code is detected, the internal structure of this country code match the checksum and is consistent with the rest of IBAN. A drawback of this service is that the IBAN is DE23 2004 1133 0008 3033 07 incorrectly identified as incorrect. The account 8303307 at the Bank with the BLZ 20041133 has in reality still a two-digit sub-account number that is visible only in the IBAN. In this case, the IBAN is DE65 2004 1133 0830 3307 00 Because of such pitfalls offer some providers of commercial online IBAN validation and calculations correctness guarantees to.

An online validation that detects the above error with German IBAN, which provides free software konto_check. The IBAN test also checks whether a given IBAN may a Rule has been followed, and then an appropriate warning.

Criticism

Criticism is often expressed at the length of the IBAN, which they (22 characters ) consists essentially in the case of Germany, from the previously already common digits bank code and account number, supplemented by the prefix letters " EN " and the two-digit check number. Getting used to the can in some forms to be found sharing the IBAN in blocks of four to be, but which is not required by the underlying ISO 13616-1:2007 Part 1.

Trivia

The IBAN is called in allusion to Ivan the Terrible and IBAN, the Terrible.