Do you run a business that sends money or payments to international bank accounts? If so, you must validate these bank account numbers before sending the payment. This can be done by checking the IBAN and SWIFT codes provided in the account details. Bank data validation helps ensure the payments are error-free, and it also helps prevent fraud, save costs, and enhance user experience. On the other hand, if you don’t validate an international bank account number (IBAN), it results in failed payments, ultimately leading to customer dissatisfaction and frustration. Hence, bank data validation has become a crucial feature of modern businesses. However, businesses often have to make transactions in several international bank accounts, and validating the data of each account manually can be time-consuming. This is where an IBAN checker or a banks API helps validate IBANs automatically.
This article will discuss the basics of validating IBANs and show you the best bank API for validating bank data.
What Is An International Bank Account Number, And How Does It Work?
An IBAN is an international bank account number that identifies overseas bank accounts to process international payments. To send money overseas, you must provide the recipient’s IBAN. IBAN is a series of alphanumeric characters on the back of a cheque or the bottom of a bank statement.
SWIFT Codes/BIC Codes
Many people confuse an IBAN system with SWIFT codes. However, these two terms are slightly different. While an IBAN of a bank helps identify an individual account that you’re using for international payment, a SWIFT (Society for Worldwide Interbank Financial Telecommunication) code identifies a particular bank during the international transaction. Hence, the SWIFT code is a bank code called a BIC or Bank Identifier Code. It typically consists of 8 or 11 alphabets, where the first four letters determine the bank, and other letters identify the bank’s country.
Many banks ask you to provide the IBAN and the SWIFT code for an international transaction. However, not all banks/countries support IBAN; in that case, you only have to provide the SWIFT code.
What Is Bank Data Validation?
Bank data validation means checking the account details (IBAN and SWIFT code) using multiple algorithms to see if a bank account can exist with the provided combination of characters. This can be done using a reliable banks API.
Why Is Validating IBAN Of Bank Essential?
Validating bank data, such as IBAN of bank and SWIFT codes, has several benefits for both individuals and businesses. For example, say you have to send money to your relative in an international account, and you make a typo during the money transfer. The payment with bounce, and it’ll take a significant amount of time to identify the mistake. This can be unpleasant. However, what’s devastating is that you send money to the wrong account due to a typo. However, IBAN and SWIFT number validation can help avoid these situations and ensures money is sent to the correct account.
Here are the benefits of validating IBAN for businesses and financial institutions while making cross-border payments:
No Payment Delays Due To Incorrect Internation Bank Account Number (IBAN)
Typing the wrong IBAN is common during international transfers. With bank account validation, you can avoid unnecessary payment delays. Customers sometimes provide the wrong IBAN unintentionally. If you have a system for validating account details, errors can be identified quickly.
Fraud Elimination
You can send money to the wrong account if you don’t validate bank account details before authorizing the transition. This can cost your business heavily, and IBAN validation minimizes the risk of fraud and reduces failed transactions.
Enhance Customer Satisfaction
When you send money to customers in overseas banks on time, customers are more satisfied. Hence bank account identification and validation helps improve the overall customer experience.
What Is The Best IBAN Checker To Validate IBAN Of a Bank?
There are different IBAN checkers available in the market. However, a reliable and efficient way to validate several IBANs and SWIFT numbers is to use a powerful API like Bank Data API by APILayer. An API refers to a set of functions and protocols that allow two apps to communicate and or exchange data.
The Bank Data API by APILayer enables users to enter the IBANs, and SWIFT numbers they want to validate. It then returns the information showing whether the number is valid. It also returns additional information about the provided IBAN, such as the bank name and country code. You can also use the Bank Data API to get IBAN examples and structure by country, fields required for generating IBANs, banks by country, all central banks, and SWIFT codes.
The Bank Data API is highly accurate and easily integrated into your apps. It offers several subscription plans, including a custom plan. There is also a free plan that you can use to test the API’s features. Additionally, the API has extensive documentation consisting of all the details about API endpoints, events, and methods.
How To Use APILayer Bank Data API To Validate International Bank Account Numbers (IBANs) and SWIFT Codes?
Here is the sample code for validating an IBAN of bank with the Bank Data API:
var myHeaders = new Headers(); myHeaders.append("apikey", "{API-KEY}"); var requestOptions = { method: 'GET', redirect: 'follow', headers: myHeaders }; fetch("https://api.apilayer.com/bank_data/iban_validate?iban_number={iban_number}", requestOptions) .then(response => response.text()) .then(result => console.log(result)) .catch(error => console.log('error', error));
Example response:
{
"bank_data": {
"bank_code": "37040044",
"bic": "COBADEFFXXX",
"city": "K\u00c3\u00b6ln",
"name": "Commerzbank",
"zip": "50447"
},
"country_iban_example": "DE89370400440532013000",
"iban": "DE89370400440532013000",
"iban_data": {
"BBAN": "370400440532013000",
"account_number": "0532013000",
"bank_code": "37040044",
"branch": "",
"checksum": "89",
"country": "Germany",
"country_code": "DE",
"country_iban_format_as_regex": "^DE(\\d{2})(\\d{8})(\\d{10})$",
"country_iban_format_as_swift": "DE2!n8!n10!n",
"national_checksum": "",
"sepa_country": true
},
"valid": true
}
Here is the sample code for checking a SWIFT code with the Bank Data API:
var myHeaders = new Headers();
myHeaders.append("apikey", "{API-KEY}");
var requestOptions = {
method: 'GET',
redirect: 'follow',
headers: myHeaders
};
fetch("https://api.apilayer.com/bank_data/swift_check?swift_code={swift_code}", requestOptions)
.then(response => response.text())
.then(result => console.log(result))
.catch(error => console.log('error', error));
Example response:
{
"bank_data": {
"address": "",
"bank_code": "20040050",
"branch": "COMMERZBANK AG, ANDERNACH",
"city": "ANDERNACH",
"country": "Germany",
"country_code": "DE",
"name": "COMMERZBANK AG",
"zip": "20457"
},
"swift": "COBADEFF574",
"swift_data": {
"bank": "COBA",
"branch_code": "574",
"code_status": true,
"country_code": "DE",
"location_code": "FF"
},
"valid": true
}
Conclusion
IBAN identifies an individual or specific bank account and is required if you want to transfer money to international banks. Some countries also require IBAN for domestic transfers. However, entering the wrong bank IBAN can result in rejected payments or sending money to the wrong account. Hence, IBAN validation is essential before authorizing the transaction. A reliable and efficient way to validate multiple IBAN automatically is to use a powerful API like APILayer’s Bank Data API.
Frequently Asked Questions (FAQs)
How can I find my IBAN?
Sometimes the IBAN is available on the bank card, and you can also find it on the back of a cheque or the bottom of a bank statement.
How many characters are there in an IBAN?
An IBAN of bank can have up to 34 characters, and it consists of letters and numbers and starts with a two-letter country code. The following two digits are bank control digits, and the rest of the digits specify the basic bank account number (BBAN).
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