In the vast world of foreign trade, we may find ourselves faced with concepts that we have never heard of, such as IBAN code or ABA code.
Learning about these types of codes and what they are used for will be essential when carrying out banking or financial operations between different countries, that is, international transactions.
What is the IBAN code?
El IBAN code is a code used to send and receive money internationally. The abbreviation IBAN stands for International Bank Account Number, that is to say, the number of an international bank account.
This is a code that Identify a certain current account belonging to a certain bank.
The IBAN code is widely used in the so-called SEPA zone, which comprises a total of 34 countries, including 28 in the European Union, although it is also used in some Middle Eastern countries.
What is the IBAN code for and how does it work?
The IBAN code consists of:
- A country code (ex: “ES” from Spain),
- A two-digit control code,
- An account number, consisting in turn of: the bank code, the branch code, the national code and the bank account number.
This type of code is widely used by banks, as this way they ensure that the transfer reaches the correct destination.
How to validate an IBAN code?
To use the IBAN, the user must Validate it from your own bank account or with the assistance of a bank agent.
You can also check the IBAN code from one of the websites that include an IBAN code validator, but we always recommend that you first consult the bank or financial institution where the account is registered.
Is the ABA code the same as the IBAN code?
El ABA code it's not the same as the IBAN code. The abbreviation ABA means American Bankers Association, which is why we are talking about a route code (Routing number) which is used within the borders of United States.
The function of the ABA code is similar to that of a postal code: it is a series of 9 digits that It is used to identify a U.S. financial institution. This code is required by banks when processing payments, checks and transfers.
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