GLOSSARY

BIC (Bank Identifier Code)

What is a BIC code?

The BIC, Bank Identifier Code is an internationally valid bank sort code defined by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). Since the BIC code is issued by SWIFT, it is often also referred to as the SWIFT code.

The BIC code is used worldwide to uniquely identify banks and financial institutions. The BIC is particularly important for international bank transfers and other financial transactions. In combination with the IBAN (International Bank Account Number), the BIC ensures that payments are forwarded precisely to the respective bank and the corresponding account.

What do the digits in a BIC code stand for?

The BIC code is an 8 to 11-character code that identifies banks globally.

The first four letters uniquely identify the bank.
The next two letters designate the country.
Followed by two further characters that indicate the location of the bank.
With an 11-character BIC, three additional characters are used to identify a specific branch or department of the bank.

BIC: Good to know for SMEs and beyond

In the Eurozone, BIC information is generally no longer required for SEPA transactions in Euro as of February 2016. The necessary bank routing information is automatically derived from the IBAN for transactions across the SEPA network. However, a few financial institutions may still request the BIC for certain transactions.

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ACH

ACH, or Automated Clearing House, is a local payment route in the United States that facilitates electronic money transfers between banks. It requires a local bank account or the use of local payment providers. ACH payments enable financial institutions to transfer funds electronically, bypassing traditional card networks like Visa and Mastercard. It’s commonly used for direct deposits, bill payments and other bank-to-bank transfers within the United States.

ACH payment

ACH payments are processed through the local ACH network in the United States, requiring a local bank account or the use of local payment providers. This method allows financial institutions to transfer funds electronically, bypassing traditional card networks like Visa and Mastercard.

Credit card

A credit card is a payment card that enables users to make purchases or withdraw cash using borrowed funds, rather than money from their own bank account. Unlike a debit card, which instantly deducts the transaction amount from a linked account, a credit card allows users to borrow up to a set limit and repay it later, usually with interest.

Debit card

A debit card is a payment card that enables users to make purchases or withdraw cash directly from their bank account, such as a checking or savings account. Unlike a credit card, which relies on borrowed funds, a debit card immediately deducts money from the user’s account when a transaction is made.

MT103

An MT103 is a standardised payment message issued by the bank within the SWIFT network, serving as an official confirmation of a completed transfer. It includes all relevant payment details, such as the date, amount, currency, and information about the sender and recipient. The MT103 document thus provides a reliable basis for transactions requiring payment confirmation, such as deliveries or services.

PSD2 (Payment Services Directive 2)

The Payment Services Directive 2 (PSD2) is a key regulation within the European Union that governs Open Banking. It aims to liberalise the market by allowing third-party providers (TPPs) to offer payment services, fostering competition and innovation in the financial sector.

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amnis offers a comprehensive platform for international banking, offering a range of tools in one place. Transfer money abroad, exchange currencies 24/7 and collect international money transfer with your own IBAN accounts supporting 20+ currencies. Founded in 2014 in Zurich, amnis is a regulated payment institution under the supervision of the Banking Supervision Section in Liechtenstein (FMA) within the EEA.

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