Key Takeaways
- An International Bank Account Number (IBAN) is a standardized code that identifies bank accounts in international transactions.
- You can get an IBAN by opening a bank account in any region that uses the standard, including Europe, the UK, and other areas.
- It’s easier than ever to get an IBAN through an online account.
An IBAN, or International Bank Account Number, is a standardized code that identifies a bank account during cross-border transactions.
If you have an IBAN, you can use it to direct international payments to countries that have adopted the standard. IBANs are not used everywhere, but are common in Europe, the UK, Denmark, and many other regions.
Here’s what you should know about IBANs and how to obtain one.
What Is an IBAN and Why Do You Need One?
Every IBAN broadly follows the same format — a string of 15 to 34 characters, with the length varying by country. This string is broken into sections that identify a country, bank, branch, and an individual bank account.
You need an IBAN if you’re receiving funds across borders from a region that uses the standard. Having an IBAN is especially necessary if you’re accepting funds, as you’ll need to provide your IBAN to the sender.
Note that if you’re sending money, you’ll need to provide the recipient’s IBAN instead of your own when you start the transaction.
Decoding an IBAN
It’s important to be able to recognize and interpret an IBAN to ensure your funds reach the right destination. For example, in this Danish IBAN:
DK50 0040 0440 1162 43
- DK is the country code, identifying the bank’s location (Denmark)
- 50 represents the check digits, which verify the code is correct
- 0040 is the bank code, identifying a bank and a particular branch
- 0440116243 is an individual user’s account number
One portion of the IBAN — 0040 0440 1162 43 — is a Basic Bank Account Number (BBAN). You might use a BBAN instead of an IBAN if your payment is being routed within the same country rather than internationally.
Note that the U.S. and many non-European countries use SWIFT/BIC codes instead of IBAN. Check IBAN.com to see IBAN adoption by country.
Traditional vs. Online IBAN Account Creation
So, how do you get an IBAN number? You can’t get one on its own. Instead, IBAN numbers are attached to bank and financial accounts, and you’ll receive one when you open an account in a region that uses the standard.
This means that getting an IBAN takes exactly as much effort as opening the related account — and it’s typically easier online. Here’s why.
Traditional Banks
Opening an IBAN bank account through a traditional bank is common, but there are a few complications that make doing so more demanding.
First, opening a traditional account is often a paperwork-heavy process, so you’ll need to submit plenty of documentation. And you might need to wait for days or weeks before your account is approved, depending on processing times.
Finally, you might find it difficult to get a foreign IBAN, as many banks only provide local IBANs to residents in their main service area.
That’s an issue if you plan to transact globally because other third parties may engage in IBAN discrimination, refusing your transaction if your IBAN doesn’t match their country. A local IBAN might not get your funds far enough.
Online IBANs
Many online payment services, including Payset, provide IBANs and have several advantages over traditional banks.
You can often expect shorter approval times. At Payset, the application process generally takes less than 72 hours. We also try to ask for as little ID and documentation as possible, as detailed here.
Furthermore, we can provide business accounts with IBANs linked to specific regions. This means you can transact like a local in key regions around the world by requesting an IBAN tied to a certain region.
Note that these advantages apply if you open an account with Payset. Other companies may or may not have similar service models.
Is It Safe and Legal to Get an IBAN Online?
Yes, it’s safe to get an IBAN on the internet, as long as you get your payment account or bank account online from a reputable service.
At Payset, we’re registered as an Electronic Money Institution (EMI) under the UK’s Financial Conduct Authority (FCA). This allows us to provide financial services to users in the UK itself and in numerous other countries.
We also protect our users through other best practices, including a safeguarding policy that segregates customer and business funds, a GDPR policy that protects your privacy, and more. Learn about our security and compliance measures here.
You should also know that it’s usually safe to share your IBAN number online when you’re expecting a transaction. However, it’s a good idea to share your IBAN only with trusted parties and avoid sharing it widely.
How to Get an IBAN Number Online with Payset
Getting an IBAN number online with Payset simply involves following our standard account application process.
- Step 1: Apply for an account on our sign-up page.
- Step 2: Provide your documentation, including your basic ID and any necessary information listed in our support pages.
- Step 3: We’ll assign a primary IBAN number to your account during setup. We may add up to two more IBANs during setup, as detailed here. Read more about getting an IBAN for a specific country here.
- Step 4: Wait for a notification that your account is available.
- Step 5: Once you have your account and IBAN, access your currency account from your dashboard and start transacting!
Use Cases for Your Online IBAN Account
At Payset, you can use your IBAN account for various types of common transactions. Our business IBAN accounts are ideal for:
- Receiving international payments
- Paying suppliers and contractors globally
- Processing eCommerce platform payments
- Remote-first businesses, freelancers, and global entrepreneurs
Plus, you’ll get access to 34 different currencies, the ability to transact with over 180 countries, access to our built-in FX exchange, and more. It’s a fast and easy way to transact globally with an IBAN from a fully online interface.
Conclusion
So if you’re looking to get an IBAN account online, rest assured that you can do so safely and easily through a variety of providers.
If you’re not sure whether Payset is right for you, contact us to learn more.
