IBAN

What is IBAN?

An international bank account number standard, called International Bank Account Number-IBAN, was developed within the framework of the European Union regulations to improve the speed and quality, and lower the costs, of money transfers between countries. Today, IBAN is in use in 33 European countries.

IBAN is aimed to prevent errors and resultant delays in money transfers made through banks and other financial institutions in European countries. Owing to IBAN, money being transferred gets from the sender’s account to the recipient’s in a faster and an error-free way, thus, eliminating waiting times and additional costs arising from errors in transactions.

How does IBAN provide ease to Account Holders?

Today almost every country or bank has a different form and length for account numbers. Customers making money transfers to another country or bank cannot be certain of the accuracy of the counter account number they received from the transferee, as there is no specific standard for account numbers.

If a purchase of goods or service is involved, account numbers of different form are contained on invoices from many sellers, which causes importers to make errors in sending money. Consequently, money transfers attempted with incorrect account numbers do not take place and the inaccuracy of the counter account number is discovered when money is received at the counter bank. Many operations are undertaken for correction of the wrong transaction, extending the transaction time and cost.

In countries having shifted to IBAN application, account holders are given an IBAN for each bank account number. Having certain a specific form and standard for each country, IBAN includes a two-digit “check number” generated by a special encryption algorithm. When a customer desiring to transfer money to another country or bank gives his IBAN to the transferring bank, the IBAN of the receiving account is checked at the transferring bank before money goes to the receiving bank. If the IBAN is incorrect, the money is not sent to the counter bank and the incorrect transaction is prevented.

Using IBAN

Let us assume Mr. Ahmet, living in Germany, wants to send money to his son, Ali, in Turkey.

• Ali visits X bank and finds out IBAN number for his account if he does not know it already.
• Ali informs his father of the IBAN number.
• Having been so informed by his son, Mr. Ahmet goes to Y bank in Germany. He gives the officer at Y bank the IBAN number of his son and tells he wants to send money to that account.
• Y Bank officer checks on his/her screen whether the IBAN number given by Mr. Ahmet is correct. If correct, the money transfer takes place.

As the money transfer has taken place with the correct IBAN, amount sent by Mr. Ahmet automatically enters his son Ali’s account when the transfer message from Y bank in Germany is received by X bank in Turkey.

IBAN Standard (How is IBAN created?)

An IBAN consists of max. 34 digits. Its first four digits are the two-digit country code and the two-digit check number. The check number shows whether the IBAN is correct and effective. The next part of the IBAN contains the national bank account number. This section may be freely fixed by every country without causing IBAN to exceed 34 digits in total length.

The IBAN length of the country is fixed at 26 digits. The form of Turkey IBAN is as follows:

IBAN Standards of Some European Countries are as follows:

Country	Length	Sample Numbers
Germany	22	DE89 3704 0044 0532 0130 00
Austria	20	AT61 1904 3002 3457 3201
Belgium	16	BE68 5390 0754 7034
Denmark	18	DK50 0040 0440 1162 43
Finland	18	FI21 1234 5600 0007 85
France	27	FR14 2004 1010 0505 0001 3M02 606
Netherland	18	NL91 ABNA 0417 1643 00
England	22	GB29 NWBK 6016 1331 9268 19
Sweden	24	SE35 5000 0000 0549 1000 0003
Switzerland	21	CH39 0070 0115 2018 4917 3

Showing IBAN on Electronic Media and Paper Media

If the IBAN number is to be processed or stored on an electronic medium (e.g. making IBAN entry on the computer or screen), all letters and numbers must be written without leaving spaces or any separation character (parenthesis, comma, hyphen, etc.). This presentation is called “electronic presentation”.

IBAN’s presentation intended for printing on paper is called “printed presentation”. In this presentation, IBAN is written separated into four digits from the left. Any digits left on the last part after the number is written in groups of 4 will be written together without leaving any space.

IBAN’s Electronic presentation
TR8400206000 00012990022302

IBAN’s Printed presentation
TR84 0020 6000 2200 2990 0223 02

Using IBAN in Local and Oversea Money Transfers

Since September 1, 2005, IBAN has been in use in local money transfers (EFT transactions) between banks in the country as it is the case with oversea money transfers.

In money transfers made with IBAN, transfer can be accomplished with only account number and without need to know details, e.g. the recipient’s branch, city, etc.

Thus, as it is the case with international money transfers, risks of delays arising from the incorrect writing of the counter bank account number, receipt into the incorrect account, etc. are eliminated in EFT transactions between banks in the country.

IBAN use is compulsory in neither local nor oversea money transfers, but money transfers using existing account numbers will continue. IBAN use in a money transfer is at the option of the recipient and the sender.

What our customers should do?

Below is a list of our channels where you can find out the IBANs of your bank accounts;

• Internet branch
• All our branches
• 444 2 444 customer services
• Mobile Branch (by your cell phone or mobile equipment)

To make use of the facilities introduced by IBAN, please inform your IBAN to people to send money into your account and require IBAN of people to whom you will make international or interbank money transfer. Try to quote your IBAN number as much as possible on documents you deliver to people and organizations having trade with you or making money transfers to you.

Error possibility is much low in money transfers made using IBAN, IBAN-using money transfers you send and receive to your account result much faster than money transfers made using account numbers. For this reason please prefer using IBAN not only in international money transfers, but also in your local remittances and EFT transactions.

Please click here to get information in more detail on IBAN.