Euro payments and BIC and IBAN

Frequently asked questions

The worlds local bank

1 What is a Bank Identifier Code (BIC)?

Banks use a communication system called SWIFT to send and receive messages to and from each
other and a BIC is a unique reference number or code to identify all banks on the SWIFT network.
You will be able to see your BIC on your paper bank statement.

2 What is an International Bank Account Number (IBAN)?

An IBAN is simply your existing account number in a format/structure that makes it

internationally recognisable. Your IBAN is displayed on your paper bank statement.

3 What is STP?

STP stands for Straight through Processing. This term refers to the automation of a payment
order from one bank to another. Effectively, payments are executed without any manual
intervention. This makes payments more efficient and cost effective for all parties in the payment
process.

4 What is the Single European Payments Area (SEPA)?

SEPA is a future vision of the European payments landscape. In simple terms, SEPA’s goals are
to allow individuals and companies to make and receive payments easily and efficiently on a pan-
European basis.

5 What is the European Payments Council (EPC)?

The EPC are a decision-making and co-ordination body of the European banking industry. A
collective of 42 European banks and three associations, including HSBC created the EPC in 2002.
Its major purpose is to support and promote the creation of the Single Euro Payments Area
(SEPA).

6 Why can the EPC make BIC and IBAN mandatory?

Whilst the EPC does not have legislative powers, their members incorporate all major European
banks. As such, any resolution is upheld, especially by its member banks. Obviously, some banks
may choose to ignore the EPC, which they are entitled to do.

7 Where can I get hold of the BIC and IBAN details of the person / organisation I want to
pay?

The usual way to obtain the BIC and IBAN is to contact the beneficiary directly and request the
details from them. Alternatively, the beneficiary may quote their BIC and IBAN on their invoice.

8 Where do I input the BIC and IBAN information?

The BIC and IBAN details of the beneficiary must be quoted on your payment. The BIC has to be
entered in the beneficiary bank SWIFT/BIC address field. The IBAN should be entered in the
beneficiary account number or IBAN field.

9 What will happen if I make an euro payment without a valid BIC and IBAN?

We will continue to process your payments without BIC and IBAN, but you should be aware that
another bank might treat the payment differently. This may result in delays and increased charges
to you and the beneficiary of the payment.
10 What charges will be applied to my account?

Our standard charges for Priority Payments are still applicable. However, If you request us to
make an euro payment without a valid BIC and IBAN, we may be liable for additional charges
from the receiving bank. These charges will be debited from your account. Each receiving bank
determines the level of charges, therefore, we are unable to quote an exact fee.

11 When will charges be applied to my account?

This really depends on when we receive a claim from the receiving bank. Most banks will submit
a claim once a month, which we are obliged to settle before the next claim period. Therefore, you
may be debited anywhere from the day of the payment to two months after the date of the
payment.

12 Does this impact all banks in the UK?

This will impact all banks in the UK and continental Europe that make or receive payments in
euro.

13 What actions are the other UK banks taking?

We expect other UK and continental European banks to adopt a similar stance to ourselves.