Below you will find the answers to the most frequently asked questions about IBAN. Click the word you want to learn more about.
Frequently asked questions
- Why should I use the IBAN?
Use of the IBAN ensures automatic, correct and fast processing of your cross-border transfers as the IBAN is an internationally acknowledged standard for account numbers which can be validated (the validity is checked) by the remitting bank.
Payments to IBAN countries are subject to a further fee of DKK 50 if the IBAN is not stated. See IBAN countries under IBAN codes.
- Does the IBAN replace my present account number?
No. The IBAN is a method of showing existing account numbers in a recognisable format across borders.
An IBAN consists of a number of characters in addition to the account number - in Denmark the IBAN consists of the country code, two check digits and a four-digit sort code (eg DK99 2000).
- What is the advantage of using the IBAN?
Nordea validates the IBAN of all outgoing payments before they are sent to foreign banks to make sure that the IBAN is correct. If the IBAN is used together with the BIC (Bank Identifier Code) - also known as the SWIFT address - of the beneficiary's bank, payments will be processed automatically and faster. If the so-called IBAN-only principle applies for the country of the beneficiary’s bank, you must not supply the BIC (read more on www.nordea.com/iban).
- Is the IBAN also used in the rest of Europe?
All banks in the EU have already implemented the IBAN. A number of other European countries have also implemented the IBAN - and other countries plan to implement the standard.
Read more about IBAN at ecbs.orgÅbner i nyt vindue
- Should I use the IBAN for cross-border payments to and from countries outside the EU?
Yes. The IBAN can be used for payments to and from countries outside the EU, such as Tunesia and Turkey. If you receive payments from non-IBAN countries, such as the USA and Japan, you can also state your IBAN as the beneficiary account.
- Can I use the IBAN for a bank giro number in Sweden?
No. Bank giro numbers should only be used for domestic payments in Sweden as these numbers do not have an IBAN. The payment should be made direct to the beneficiary’s bank account stating the IBAN.
- Who will use the IBAN?
Both businesses and private individuals can benefit from using the IBAN for cross-border payments.
- I make and receive cross-border payments. Are there any measures I should take in relation to the IBAN?
As an importer you can improve the quality of your outgoing payments by obtaining the foreign beneficiary's IBAN. In the payment instruction to Nordea, you should state the beneficiary's IBAN instead of the beneficiary's account number. If you enter the instruction electronically, you should write the IBAN without any blank spaces.
Please note, that the word IBAN is not part of the IBAN itself which always starts with a two-letter ISO country code. The IBAN should always be used together with the receiving bank's BIC (Bank Identifier Code), unless the so-called IBAN-only principle applies for the country of the beneficiary’s bank (read more on www.nordea.com/iban).
As an exporter you should give the IBAN to the remitter abroad, so that it can be stated on the payment instruction to you. Please also state Nordea's BIC which is NDEADKKK.
Invoicing of customers abroad:
You should always state your IBAN - and only use the IBAN which Nordea has provided for your account.
You can obtain labels with Nordea's SWIFT address or BIC from your usual adviser. You can stick the labels to your invoices.