What are the Contributions of Dedicated IBAN to Businesses?12 min read

Dedicated IBAN numbers, or International Bank Account Numbers are used widely in more than 70 countries worldwide. They are used for both domestic and, more importantly, international transfers or payments by individuals and businesses.

Using a dedicated IBAN account enhances your experience with global payments or transfers. No matter if your business is small or large, having a dedicated IBAN account has many advantages regarding security, time, tracking, and credibility. 

The check digits in your dedicated IBAN number prevent your payments from ending up in the wrong location or a bank account. It is 100% traceable and faster than other transaction methods. The fees are also lower than other methods. You can make automated payments and save time on your transactions. 

What is a Dedicated IBAN?

A dedicated IBAN is a unique code, given to your business’s bank account, unlike SWIFT codes which refer to the financial institution rather than a specific account. With SWIFT transactions your money initially arrives at the institution or bank before being transferred to your account.

A standard IBAN consists of 34 characters in a specific format. This format includes a country code, check digits, a bank code, a sort code, and an account number. This unique code minimizes the errors that were inevitable before its introduction.

How to Get Dedicated IBAN for Business?

Depending on your bank or country, the steps to obtain a dedicated IBAN for your business may differ. If you have an existing business bank account, you can contact your bank or institution to find out whether your account already comes with an IBAN.

You may also consider online options. Many banks or institutions enable you to obtain or reach your IBAN from their online banking platforms. You can easily check your account information and see if they provide such services.

You may be required to provide detailed information or documentation regarding your business. Some banks have specific business accounts for international trade that may require you to prove your cross-border transactions.

How to Apply to Get a Dedicated IBAN?

Submit your application by filling out application forms via online platforms or in person. Online options may be a quicker and practical option. Make sure to give all required information correctly. Provide documents about your business to prove its existence.

Following your application, the institution will review and check the accuracy of your documentation and application. After ensuring your business is in compliance with regulations your application will be approved after which you will be assigned a dedicated IBAN account.

How to Do International Transfers with Dedicated IBAN?

After activating your account and obtaining your IBAN, start your transfers. Firstly, be sure to have enough funds to make your payment and cover the amount of fees. Log into the online banking platform or application to start your transaction.

Use the section on the platform that allows you to make transfers and select international transfers. 

Enter the name of the recipient and their IBAN, in some platforms more information may be required such as the address and bank name of the recipient. 

Enter the amount you wish to transfer. Some platforms allow you to write notes for your transaction, you may use this option to specify the details of your transfer to the recipient. Lastly, review the transfer details and confirm. If this will be a regular payment, use the automated payment function.

After confirming you can easily track your transaction by a reference or confirmation number you receive. Some platforms allow you to do real-time tracking. After your transfer is completed, you will receive a confirmation with the details.

How to Open a Dedicated IBAN Account?

The first step is finding the most suitable bank that provides the services needed for your business sector. Learn about the different account types the bank offers and the requirements for your account to choose the right one for you. Be aware of the fees and transfer limits.

Make sure that the bank is capable of providing international transactions. Contact them via phone, their online platforms, or visit a branch office in person to get more detailed information and the steps you should follow. 

Many people find it easier and more practical to complete their application online. For instance, The Guardian Bank offers the option to open an account via mobile app 24/7, and the process takes only 5 minutes to complete. No need to visit a branch, wait in line, or take time off work.

Once your application is approved and your account is active you are ready to send and receive payments. You can find your IBAN number on your online banking platform or application, on your bank statements, your debit cards or you can contact your bank. 

Open a Dedicated IBAN SEPA Account for Business

The Single Euro Payments Area, or SEPA is a EU- established system that provides standardized payment for euro transfers within member countries. It allows businesses to make payments or e-payments as easily as domestic payments across countries with little to no fees.

To make SEPA payments it is required to have an IBAN number. The country code on your IBAN provides the information that the country you are making payments to is a member of SEPA. You can make your payments online, at the branch, or by a provider of your choosing. 

Opening a SEPA account is similar to opening a dedicated IBAN account. Your first step is choosing the most suitable bank or EMI (Electronic Money Institution). The Guardian Bank is a reliable option that provides services such as a SEPA account. You can open an account online or at a branch office by submitting your application. 

After the process of confirmation and validation, you are ready to go. Once your account is active you can start sending and receiving payments. SEPA provides three different types of transfer; SEPA Credit Transfer, the SEPA Instant Credit Transfer, and the SEPA Direct Debit Transfer.

SEPA Credit Transfer is mostly used for one-time transactions. This type of transfer requires IBAN numbers of both the sender and the recipient and it works just like a domestic transaction. The money is moved from one account to another. Once it’s authorized, it’s received after a business day.

SEPA Instant Credit Transfer is also known as the SEPA Instant Payment. Once the payment is confirmed by the sender, the payment is received within seconds. This type of transfer uses a direct routing system and is available at all times (24/7, 365 days).

Unlike SEPA Credit Transfer and SEPA Instant Credit Transfer, SEPA Direct Debit Transfer is mostly used for regular or repeated transactions. In this type of transfer, the receiver requests the payment from the sender. In this method, the receiver must send a request and the sender must allow the money to be taken from the account.

Now that you are familiar with the steps to take your business transactions to a safer, quicker, and more professional level, check out The Guardian Bank’s website,and get started with SEPA IBAN and enjoy the comfort of making transactions, tracking your payments, and lowering your fees to expand further.