What Is an IBAN and Why Does It Matter?

If your business works with international suppliers, factories, or promotional product partners, you’ve likely come across the term IBAN. It stands for International Bank Account Number, a standardized format developed to make global money transfers safer, faster, and more accurate.

Understanding the IBAN system helps prevent costly delays, payment errors, and back-and-forth clarifications with factories—especially when you are working across multiple regions.

What is an IBAN number?

Most banks in the European Union are using an IBAN code to facilitate international payment orders. If you would like to know what your IBAN code is, you can use this HSBC IBAN Generator to generate your IBAN code.

For ODM, Hong Kong does not use IBAN numbers, so clients should give banks our account number, bank name, and SWIFT number for HSBC.  Money can be transferred easily.  The Swift Number identifies the bank branch, so no bank address is needed.  You can insert HSBC HQ, 1 Queens Rd. Central, Central, HK if this is required.

About HSBC

The Hongkong and Shanghai Banking Corporation Limited (HSBC) is one of the world’s largest banking and financial services organizations with around 6,900 offices in established and faster-growing markets.

HSBC is also the recognized leader in Global Trade and Receivables Finance with over 140 years of trade experience. The Bank has won numerous awards, including Global Finance’s Best Trade Finance Provider in Hong Kong (2002-2011).

What is IBAN?

The International Bank Account Number (IBAN) was originally adopted by the European Committee for Banking Standards (ECBS) and later standardized under ISO 13616:1997. It is an internationally agreed means of identifying bank accounts across national borders with a reduced risk of propagating transcription errors.

The current standard is ISO 13616:2007, which indicates SWIFT as the formal registrar. However, the IBAN format is widely used in the European Union, the Middle East, and the Caribbean.

Consider using an IBAN number checker, searching IBAN number examples, or learning how to find IBAN numbers for further information.

Why the IBAN System Was Created

Before IBAN, international bank transfers were filled with inconsistencies. Banks formatted account numbers differently, which often led to:

• Mistyped account numbers

• Delayed or rejected transfers

• Increased bank fees

• Mis-routed payments

The IBAN resolved all these issues by requiring every bank account to follow an internationally recognized structure.

Today, more than 70 countries use the IBAN system.

International Payment Order

ODM has clients from many different parts of the world. This has engaged us in many international payment orders. ODM would like to give a general idea on how you can make an international payment order to or from foreign business banking accounts in Hong Kong. For HSBC business account holders in Hong Kong, this is the information you need to provide for inward payments to your account.

• Account name
• Account number
• Beneficiary bank name (i.e. HSBC Hong Kong)
• Beneficiary bank address (i.e. 1 Queen’s Road Central, Hong Kong)
• SWIFT Address (i.e. HSBCHKHHHKH)

What is the role of a SWIFT Address in settling international payment orders?

Society for Worldwide Interbank Financial Telecommunication (SWIFT) is the current standard according to ISO 13516:2007. It provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized, and reliable environment.

The majority of international interbank messages use the SWIFT network. SWIFT does not facilitate funds transfer. Rather, it sends payment orders. This must be settled through the correspondent accounts that the institutions maintain with each other. To engage in banking transactions, each financial institution must have a banking relationship, either as a bank or by affiliating with one (or more) banks, to enjoy those particular business features.

An IBAN is made up of several parts that encode the country, bank, and account details. While the exact length varies by country, the structure remains consistent:

• Country Code (2 letters)

• Check Digits (2 numbers)

• Basic Bank Account Number (BBAN)

Example:
GB33BUKB20201555555555

This standardized format helps banks validate account details instantly, reducing the chance of errors.

Tips for Businesses Handling IBAN Transfers

To keep your payment process smooth:

1. Always request an official bank slip from your supplier or agency.

2. Double-check the IBAN format—each country has a fixed number of characters.

3. Confirm the SWIFT/BIC alongside the IBAN.

4. Keep consistent records for repeat payments.

5. Avoid copying details manually—always copy-paste from the original source.

Being diligent saves you time, fees, and unnecessary headaches throughout your supply chain.

Why IBAN Matters When Working With ODM Group

For global businesses, especially those that regularly produce promotional products, having the correct bank details is crucial. Payment delays can affect:

• Production schedules

• Material sourcing

• Shipping timelines

• Sample approvals

• Delivery commitments

By using IBAN, transfers become far more efficient. Banks validate the number before releasing funds, reducing failed payments and unnecessary follow-ups.

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Frequently Asked Questions:

Is IBAN the same as SWIFT?

IBAN means International Bank Account Number while SWIFT means Society for Worldwide Interbank Financial Telecommunication. They are not the same since IBAN specifically points to your bank account details that can receive payment whereas SWIFT points to the bank itself.

Is IBAN used in all countries?

No, IBAN is not used in all countries. They’re mainly used in Europe and the Middle East so when you transfer money in those countries, you’ll be asked for your IBAN.

Why do companies use IBAN Codes?

Companies use IBAN codes to identify the bank accounts across national borders so that they can facilitate international trade and transactions. This helps reduce the risk of transcription errors and helps exporting/importing companies to manage their overseas receipts and payments.

Do registered brands and companies require IBAN Codes?

No, it is not an obligation. Another alternative that companies use is a Society for Worldwide Interbank Financial Telecommunication (SWIFT) code. IBAN and SWIFT codes are both internationally recognized codes. IBAN codes are used to identify a specific account, whereas SWIFT codes are used to identify a particular bank involved in the transaction.

Where can I get a company’s IBAN code?

BAN codes are written in a general structure ; *Country Code – Check digits – Bank Identifier – Sort Code – Account Number* You can use an IBAN calculator to generate your own IBAN code or use an IBAN checker online, to ensure that the money that is wired overseas reaches to the correct recipient.

If I send money to any HSBC branch in Hong Kong, the account holder can get the money since everyone has a unique bank number here. Is this same for HSBC China operations?

You can send money to any HSBC bank branch in China. For reassurance, feel free to contact HSBC China through their website.

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