Glossary
What is an IBAN?
An IBAN is an international bank account number format used across Europe and beyond. See how its parts and check digits work, with a sample breakdown.
Updated · By PayToMe Editorial
An IBAN, short for International Bank Account Number, is a standardized format for bank account numbers that identifies a specific account at a specific bank in a specific country. It is used across Europe and in many other countries, and it is designed to reduce errors in cross-border payments.
How it works
An IBAN is made of up to 34 letters and digits, though the length is fixed for each country. It has three parts:
- Country code. Two letters, such as DE for Germany or FR for France.
- Check digits. Two digits that let software catch typos.
- Basic bank account number. A country-specific block that holds the bank identifier and your account number.
The check digits come from a calculation called MOD-97. Move the first four characters to the end, turn letters into numbers, and divide the result by 97. A valid IBAN leaves a remainder of 1. Because of this, most mistyped IBANs are rejected before any money moves, which is a major advantage over a plain account number.
On an invoice, show the IBAN with the account holder’s name, grouped in blocks of four for readability. For non-euro or non-SEPA payments you will often add the SWIFT code as well. Inside the euro area, payers can use bank transfers or SEPA direct debit, both of which rely on the IBAN.
Countries outside the IBAN system, including the US, use other identifiers, such as the routing number.
Example
This is the widely used documentation-style German sample IBAN, not a real account: DE89 3704 0044 0532 0130 00.
An invoice payment block might read: Account holder: Muster Design GmbH, IBAN: DE89 3704 0044 0532 0130 00, BIC: ABCDDEFFXXX (fake sample). Create an invoice with these details using the invoice generator, free today. PayToMe is in public beta, and online payments through Stripe are live. You can sign in to PayToMe.
Related terms
- SWIFT code: the bank identifier that often accompanies an IBAN abroad.
- SEPA direct debit: a collection method that uses IBANs.
- Routing number: the US counterpart for domestic payments.
- Remittance advice: tells you which invoice a transfer covers.