The Bank Identification Code BIC Is Another Abbreviation, Which You Will Come Across

Category: Finance, Currency Trading.

Electronic money transfers are not only used in connection with foreign currency exchange payments, but in a host of other payments especially when larger amounts are involved such as property, boats, cars, in fact anything. IBAN is a bank code which identifies the account number and additional characters, thus avoiding possible mistakes.

Nowadays, EUROPEAN CROSS BORDER PAYMENTS are made easier for the parties to send, thanks to the use of IBAN which means International Bank Account Number for short. It must be noted however, that its validation is no guarantee that the account number or bank code is correct or that it exists. The IBAN is given for the account by the bank serving that account, and should only be taken from that bank. It is the responsibility of the account owner to notify their IBAN to the party they wish to deal with. It prevents getting possible incorrect IBAN details, as this can cause delay in receiving payment. Companies dealing with international money transfers are very exact and are eager to change one currency against the other as fast as they possibly can, to complete the deal and show their clients how smoothly and quickly they perform.

Nobody wants any delays when making foreign currency exchange payments. The bank identification code BIC is another abbreviation, which you will come across. In order to make a payment, it is required to quote the IBAN and BIC. BIC is a way of being able to identify financial institutions so that the process of telecommunication in financial institutions/ banks is facilitated. The use of IBAN became compulsory since July 200 Most people have heard of the abbreviation SWIFT, which stands for Society for Worldwide Interbank Financial Telecommunication. It is this service that foreign currency exchange companies use to move the money bank to bank. SWIFT is a global provider of secure financial messaging service.

It is also the same service constantly used to move millions of pounds and other currencies by countless other financial institutions. CHAPS or in short The Clearing House Automated Payment System is an electronic same day value payment in sterling, and within the United Kingdom. It is fast and safe. It is to be remembered that banks make a charge for the electronic payment transfers. When making foreign exchange currency transfers you will simply need to fill in a form, which the company you select to do the business with will provide. In contrast, almost all foreign currency exchange companies do not make a charge for outward electronic payment transfers.

The few above mentioned details, serve only to inform those, who wish to know what certain abbreviations actually stand for, plus a little explanation here and there.

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