What Is IBAN Account and How To Use One

Written by: smm

on: 03/04/2023

Only some know what IBAN is really all about, how it revolutionized traditional settlement accounts, and how you can send money to it.

IBAN stands for International Bank Account Number and is a standard numbering system used to send and receive money internationally, except in cases where you make wire transfers to the United States, Canada, and some other countries that do not support this system.

The IBAN can consist of up to 34 characters, including letters and numbers. The exact length typically depends on the country.

The IBAN unique identifier normally comprises of:

• The country code (first 2 characters)

• Two check digits (next 2 characters)

• Financial institution code

• Basic Bank Account Number (BBAN)

Switching to IBAN makes the entire money transfer procedure a whole lot easier while helping you avoid mistakes when entering banking details.

It also has many other benefits. You can:

• Identify the payer, recipient of funds, or financial institution based on a single banking detail.

• Reduce the payment time.

• Cut the cost of international payment processing operations for banks and the payment fees for customers.

• Eliminate the need to enter a SWIFT code when accepting international payments. You can simply enter your current IBAN account.

• Have QR codes containing encrypted  IBAN information, which will simplify the payment settlement process.

Here’s when you should use IBAN:

#1. International wire transfers

The IBAN number is only required when sending or receiving money from overseas. You do not need your IBAN to withdraw or deposit cash, or when making online purchases. If you wish to receive money internationally, you will have to provide the sender with your IBAN number. If you are the one making an international wire transfer, you need to know the recipient’s IBAN.

#2. SEPA transfers

If you send or receive money across the EU, you must indicate the recipient’s IBAN code.

The difference between a payment card and an IBAN account:

A bank card is a unique tool used at the bank level whereas IBAN is used globally. When entering the bank card information, you can easily make a mistake. IBAN is what keeps you safe in this regard.

Steps you need to take to switch to IBAN:

You can tackle all matters associated with the opening of the IBAN account yourself in your SharPay account.

With SharPay, you don’t have to make a trip to a financial institution, wait in long lines, and waste precious time to get the IBAN account opened.

We put our best foot forward to make this process easy and hassle-free for you. You can create your IBAN account in a matter of minutes from the comfort of your home.

1. Choose what you are more comfortable with—a mobile app or a website—by typing https://sharpay.net/ in your browser.

2. Proceed to the account registration page and enter your valid email address, a phone number in the international format, and a password which must be at least 8 characters long and include an upper case letter, a lower case letter, and a number.

3. Then, click the link in the email sent to the email address you have entered, or enter the OTP password you will receive via a text message to your phone number.

4. Agree to the terms and conditions, and hit “Start.”

5. Use the “+” button to select the preferred option—Create IBAN Account—from the list in your personal account.