Practical Guide to P2P Transfers via IBAN: What You Need to Know

The IBAN (International Bank Account Number) is the standard that revolutionized the way people make bank transfers. If you’ve ever tried to send money to someone in another country or even within the same country, you’ve probably heard of this system. Since Ukraine adopted IBAN as a mandatory standard in 2019, international and domestic transactions have become much simpler and more secure.

Understand How IBAN Works in the Banking System

IBAN functions as a unique identifier for your bank account in the international landscape. Think of it as a numerical passport for your account: without it, banks would have difficulty routing your money correctly to the right destination.

The structure of IBAN follows a specific pattern. It consists of 29 characters that work together to precisely identify where your money should go. The first two characters are the country code (UA for Ukraine), followed by two special digits called check digits. These digits act as a protection system that helps identify errors before the transaction is processed. Next comes the code that identifies which bank is receiving the money, and finally, the unique account number of the beneficiary. A practical example would be something like UA1234567890123456789012345678.

For IBAN to work correctly, it needs to be generated from specific information about the account holder. For individuals, a 10-digit code called RNOKPP (which replaced the old TIN) is used. For companies and legal entities, the 8-digit EDRPOU code is used. These codes ensure that each IBAN is unique and traceable.

Step-by-step: How to Make a Transaction via IBAN

Making a person-to-person transfer using IBAN is easier than it seems. P2P (peer-to-peer) transactions are simply direct transfers from one person to another, without intermediaries.

Start by finding out the complete IBAN of the recipient. You can find it in the other person’s banking app or ask them directly. It’s essential to have the correct information before proceeding.

Next, carefully verify each character of the IBAN you will use. Even a single incorrect digit can cause the money to be credited to the wrong account. Take your time to review it attentively.

When you proceed with the transaction, your bank may ask you to specify the purpose of the payment. This can be any information that helps identify the reason for the transfer — for example, “invoice payment,” “monthly salary,” or contract details. This information acts as a record of the transaction.

Finally, access your bank’s app or use an ATM to complete the operation. Most Ukrainian banks offer intuitive mobile platforms where you enter the IBAN, the amount, and confirm the transaction in seconds.

Security and Speed in IBAN Transactions

The IBAN system offers significant benefits for those who make transfers regularly. One of the most important advantages is the drastic reduction of errors. Since IBAN is standardized and includes automatic check digits, the likelihood of money going to the wrong account is virtually eliminated. This provides peace of mind that older systems did not offer.

Speed is another factor that makes IBAN so popular. When you make a transfer through a participating bank in the modern electronic payment system, the transaction is processed within up to one hour. This works between 1:30 PM and 10:30 PM on business days, and banks also process transfers on weekends. For domestic transactions, this represents a huge change compared to the past.

The system is also robust. All banks participate in this modernized infrastructure, which means that no matter which bank you use or to which bank you are sending money — the IBAN will work consistently and securely.

What to Do When the IBAN Doesn’t Work?

Occasionally, you may notice that an IBAN transfer has not arrived within the expected time. The first thing to do is wait until the end of the day. Sometimes, banks need additional time to process batch operations, especially during peak periods.

If after a full day the money still has not been credited, contact your bank’s customer service. They have tools to track exactly where the transaction is and can identify if there was an issue with the IBAN data or if there is another obstacle in the process.

IBAN is a powerful tool for those who need to make transfers securely, quickly, and reliably. Understanding how to use it correctly ensures your financial operations run smoothly.