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An International Bank Account Number, better known as an IBAN Number, is an international numbering system used to recognize bank accounts in relation to cross-border payments.
Before it was created different standards for bank account identification across countries were confusing and the source of many errors for transactions.
For countries that have applied IBAN, transaction errors have been reduced to under 0.1% of the total number of transfers.
To give a little background on where the International Bank Account Number originates, it was initially implemented by the European Committee for Banking Standards (ECB) to overcome these international payment difficulties.
Originally, the system was developed to facilitate the processing of cross-border money transfers within the EU.
As it gradually gets adopted by banks beyond the EU, it was made an international standard under ISO 13616:1997.
Currently, the scheme has been employed by most European countries and several other countries around the world, namely in the Middle East and the Caribbean.
A full list of these countries is provided at the end of this article.
Another 25 countries are currently conducting partial/experimental use of the IBAN system.
Many major countries do not use the IBAN system, including the USA, Canada, Australia, China, Japan.
However, all these countries recognize the system and process IBAN payments.
Before it was created different standards for bank account identification across countries were confusing and the source of many errors for transactions.
For countries that have applied IBAN, transaction errors have been reduced to under 0.1% of the total number of transfers.
To give a little background on where the International Bank Account Number originates, it was initially implemented by the European Committee for Banking Standards (ECB) to overcome these international payment difficulties.
Originally, the system was developed to facilitate the processing of cross-border money transfers within the EU.
As it gradually gets adopted by banks beyond the EU, it was made an international standard under ISO 13616:1997.
Currently, the scheme has been employed by most European countries and several other countries around the world, namely in the Middle East and the Caribbean.
A full list of these countries is provided at the end of this article.
Another 25 countries are currently conducting partial/experimental use of the IBAN system.
Many major countries do not use the IBAN system, including the USA, Canada, Australia, China, Japan.
However, all these countries recognize the system and process IBAN payments.
