SWIFT codes are a combination of various kinds of letters and are used to identify the branch codes of the banks. These codes are used as Bank Identifier Codes (BIC).
A SWIFT code is used to identify a particular branch of a bank. These codes play an important role in various bank transactions, especially when it comes to international transactions. A SWIFT code may also be used by various banks to transfer other messages.
A SWIFT code may be of eight to eleven digits and has the following components:
A good example of a SWIFT code would be the CommBank’s code- CTBAAU2S
It must be remembered that BICs and SWIFT Codes can be used interchangeably and are one and the same thing. A SWIFT code is usually used during international bank wire transfers. However, these codes may also make you pay a higher rate, depending on the ongoing rates at the time of the transaction. At present, there are more than forty thousand live SWIFT codes.