IBAN and How to Perform P2P Transactions with It

IBAN and Its Function

IBAN ( International Bank Account Number ) is a standard format for international bank account numbers. Used in over 50 countries. The purpose? To ensure smooth, fast, and accurate interbank payments. In Ukraine, IBAN has been mandatory since 2019. It seems to greatly assist their local and international transactions.

IBAN Structure

An IBAN has several characters— in Ukraine, it can have up to 29 characters. Its structure is as follows:

• Country code (UA for Ukraine)
• Two digit check
• Bank code
• Account number

An example of a Ukrainian IBAN looks something like this: UA1234567890123456789012345678. Quite long, isn't it?

IBAN vs SWIFT

IBAN and SWIFT are different. IBAN is for identifying personal accounts. SWIFT ( or BIC ) is for identifying banks. Both are important. You need both for your money to reach the right place. The difference is not entirely clear to many people.

Creating IBAN

To create an IBAN, a special code is used:

• People in Ukraine use the 10-digit code RNOKPP
• Legal entity uses EDRPOU 8 digits

These codes seem to ensure a unique identification.

P2P Transactions via IBAN

P2P means direct payments between people. Without intermediaries. How to do it:

1. Obtain the recipient's IBAN. Available in the banking app.

2. Verify the data carefully. Just one wrong character, and your money could be misdirected!

3. Determine the payment purpose. The bank needs to know what this is for.

4. Pay. Use the banking app or ATM.

Advantages of IBAN

In this digital age, IBAN has many benefits. Secure. Accurate. Transactions usually complete within an hour—quite impressive! IBAN is used in many countries. Austria. Denmark. Norway. The length varies depending on the country. Albania has an IBAN of 28 characters, for example.

IBAN also has an automatic validation system. The check digit helps reduce errors. This is a type of security that we sometimes do not realize is important.

Transaction Issues?

Payment not received? Wait until the end of the currency exchange day. The bank may still be processing. Still having issues? Contact the bank. They should be able to help, although it may take some time.