IBAN (or International Bank Account Number) is a bank account number specified in accordance with an international standard, which has been used in Ukraine since August 2019. Initially, IBAN accounts were introduced to standardize transfers between EU countries, but later IBAN codes began to be used in other countries as well. The IBAN number made it possible to speed up and reduce the cost of transfers between accounts in different banks. The official registrar of the IBAN standard is SWIFT.
IBAN number structure
Let's look at an example of an IBAN for the UK:
- GB is the country code.
- 12 — check digits.
- ABCD is the bank code.
- 123* — branch code.
- 123*** — account number.
Each of these elements provides a specific function and plays an important role in the payment processing process.
How to find out IBAN?
For a correct transfer of funds, it is necessary to specify the correct IBAN number. An error in the number may result in the money being sent to the wrong account or the transaction not being completed, which may result in additional costs.
What is IBAN and where to get it? You can find your IBAN in your online banking account or on your bank statement. In addition, special tools for checking IBANs are available on many financial websites.
However, it is important to understand that the correct IBAN format does not guarantee that it actually matches an existing account. Therefore, it is always worth clarifying the details with your bank or the recipient before making a payment.
Examples of IBAN formats in different countries
Different countries use specific IBAN formats. Below are examples of IBANs for several countries:
| Country | Length | IBAN example |
| Great Britain | 22 | GB29NWBK60161331926819 |
| France | 27 | FR1420041010050500013M02606 |
| Germany | 22 | DE89370400440532013000 |
| Ireland | 22 | IE29AIBK93115212345678 |
| Spain | 24 | ES9121000418450200051332 |
Each format has its own specifics, but the general principle remains the same.
Before sending money, carefully check the correctness of the number entered.
The Ukrainian IBAN format, introduced in 2020, contains 29 characters. For comparison: in Poland it is 28, and in Norway - only 15.
Why do I need an IBAN?
The introduction of IBAN is aimed at simplifying international transfers through the SWIFT system. For many Ukrainians, it has become a tool for receiving international assistance.
How to find out the IBAN of the account for payments?
Bank customers receive their IBAN automatically when they create an account. You can find your IBAN via the bank's chatbot, hotline, mobile app, or by contacting your nearest branch.
This 29-character code contains the card account number and the customer's primary bank account. Its use makes financial transactions faster and more convenient, especially for international transfers.
How to make payments using IBAN
Recently, our country introduced the acceptance of payments through an IBAN account. This is due to the fact that previously payments were made through the PrivatBank key card, but since March of this year it has become unsuitable for such operations due to the introduction of innovations.
It may seem that paying via IBAN is more complicated or less convenient? This is a misconception. Although at first glance the 20 digits in the account number may seem redundant, entering them is almost no different from a standard card payment. The difference is that transactions via IBAN are safer and more transparent.
How to pay to an IBAN account?
The process of making a payment to an IBAN account is simple and has a similar procedure in all banks. You will need:
- Internet banking can be your bank's mobile app, its website on a PC, a terminal, or a branch cashier.
- Payment details – IBAN account number, MFI code, and the recipient's full name.
Transfer procedure:
- Go to the "Payments" or "Transfers" section.
- Select "By details" or "To IBAN account".
- Specify the transfer amount, and in the payment destination, specify the order number in the format "Order 00000".
The process is complete and the payment has been successfully sent.
Instructions for popular banks
Monobank
- Open your online banking app or use your bank's web version.
- Find the "Other payments" section.
- Select the "Payment by IBAN" option.
- Enter the IBAN account you were provided with and click "Create Payment".
- Fill in all required fields, check
data is correct and confirm the transaction.
IBAN how to transfer money to PrivatBank
- Go to the "Payments" menu in the mobile application or online banking.
- Scroll down to find the "By Details" feature.
- In the special field, insert the IBAN number you received from the recipient.
- Fill in all other required data in the form that opens and confirm the transaction.
Ukrsibbank
- In the bank app, select the account from which you want to make the payment.
- Click "Transfer", then select "To an account in another bank."
- Enter the recipient's IBAN, as well as the remaining required details and the amount.
- Check the data and confirm the operation.
Oschadbank
- Log in to the "Payments" section of your online banking.
- Select the option "Payments to arbitrary details".
- Select "To IBAN from card account" or "To IBAN from current account".
- In the top corner of the screen, click the settings icon, where you can create a template or set up a recurring payment.
- Fill in all fields according to the provided details and confirm creation.
Thanks to these steps, transferring funds to IBAN can be done quickly, reliably, and without unnecessary difficulties. Understanding the algorithm will make payments as convenient and comfortable as possible.
How to check the receipt of funds to the IBAN account?
IBAN is an addition to your account details and not a separate wallet. That is, the receipt of funds occurs as part of the general payment procedure using the details. If an individual or organization has transferred money to you using IBAN, the balance will be displayed in the main account.
Common mistakes when using IBAN
Every IBAN number contains two check digits that follow the country code. These digits are used by banks to verify that the IBAN format is correct. This tool will also help you verify that the format you entered is correct and will let you know if your IBAN number is correct.
It is important to remember that even if the format of your IBAN is correct, it does not guarantee that the number itself exists or that it actually points to the correct account.
If you enter a non-existent IBAN when making a transfer, your bank may charge you a fee for an incorrect transfer. If the IBAN is valid but does not match the intended recipient, the money may be sent to the wrong account. Therefore, always verify the correct IBAN by checking with the recipient or your bank.
Common mistakes to avoid:
- Input errors. IBAN numbers can be long and it's easy to make a mistake when typing them. To avoid such errors, it's best to copy and paste the number into the transfer field.
- Incorrect format. When sending money online, always enter your IBAN without spaces. Some banks may reject your transfer if you use a format with spaces.
- Incorrect beneficiary details. Some banks may require additional information from you. It is important to enter this information correctly to avoid problems with the transfer, even if the IBAN itself is valid.
Always check the details with the recipient. This tool will help you check the IBAN format, but it cannot confirm whether the number exists or whether it corresponds to the desired account. Remember that you should always check the IBAN code with the recipient or bank to avoid problems.
If you are unsure whether you have used the correct IBAN, contact your bank immediately. In some cases, they may be able to stop the transfer. If the transaction cannot be reversed, contact the recipient directly for a refund.
Features when using IBAN
The issue of using payments via IBAN was considered in detail by the National Bank of Ukraine (NBU), and, according to experts, this form of transfer has obvious advantages in terms of security. As NBU representatives noted in an interview with LIGA.net, the presence of a full set of details, both of the sender and the recipient, excludes the possibility of using only the card number, as in the case of p2p (person-to-person) payments. This significantly reduces the risks of abuse and provides a higher level of control over operations.
To successfully complete a transaction using IBAN in hryvnia, in addition to the account number, you must provide the following data:
- Full name, surname and patronymic of the recipient (if available).
- Taxpayer Identification Number (TIN) confirming the legitimacy of the transaction.
However, it is worth noting that such transfers are not instant. The transaction time can vary from a few minutes to several hours. It is important to note that if the payment is made again, the second transfer usually takes place much faster.
These features significantly complicate the use of IBAN payments in illegal schemes. According to NBU research, such transfers have not been widely used in transactions with "drops" - the so-called money laundering schemes through front persons. This is explained by the fact that to make such payments, it is necessary to specify not only personal data (surname, first name, patronymic, TIN), but also a unique account number in IBAN format.
Additionally, it should be noted that if the sender's and recipient's accounts are serviced by different institutions (banks or financial institutions), then such a transfer usually goes through the Electronic Payment System (EPS) of the National Bank of Ukraine, which also adds security to the transaction.
In order to simplify the process for customers, commercial banks have implemented in their applications the ability to automatically fill in the recipient's details. Thus, to pay via IBAN, it is enough to know only the international account number. All other data required for the payment is filled in automatically, using information from the payment institutions' databases.
Also, to speed up the process, banks use QR codes containing IBAN, which simplifies filling in details and speeds up payment. To successfully complete a transaction using a QR code, you only need to specify the transfer amount and its purpose (if it was not automatically generated by the system).
The National Bank of Ukraine also announced the introduction of new features for users. In particular, the introduction of instant credit transfers within the SEP. This will allow transfers to be made in just a few seconds, and the system itself will be a worthy alternative to card payments, ensuring speed, convenience, and security for all users.
In order to speed up the payment process, lawyer Bohdan Yankiv advises to write an explanation for the transfer in the transaction purpose field. For example: "Transfer between own cards (accounts)" or "Money from the individual entrepreneur's account after paying taxes," even when the funds are transferred to the user's own accounts.
Advantages of using IBAN
The integration of the international IBAN standard in Ukraine will be an important step in harmonizing the domestic payment system with European standards, and will also open up new opportunities for further modernization of the Electronic Payment System of the National Bank of Ukraine (NBU). The implementation of IBAN will help optimize the processing of payment documents, in particular, reduce the number of details, which will simplify the processing of payments.
The main advantages of using IBAN for bank customers will be:
- Simplifying the identification of transfer participants. Using a standardized format of details will make it easier to identify the payer, recipient, and bank, which will significantly improve the accuracy of payment transactions.
- Avoiding errors. Reducing the number of details in payment documents will help avoid errors when entering data, which will ensure correct payment execution and reduce the risk of failures.
- Acceleration of the transfer process. Since IBAN provides quick identification of bank accounts, customers will be able to make transfers faster and without delays, which will speed up financial transactions for individuals and legal entities.
One of the key areas of development is the planned introduction of QR codes for making payments via IBAN. Scanning the codes will automatically display all the necessary payment information, which will significantly simplify the process of paying bills and exchanging payment data, minimizing the human factor.
Thus, these innovations will significantly increase the convenience and security of financial transactions, becoming beneficial for users of banking services and for financial institutions themselves.
