Difference Between SWIFT code and Routing Numbers

SWIFT code vs Routing Numbers

SWIFT code or Society for Worldwide Interbank Financial Telecommunication and routing numbers are used in financial affairs. These two are used for identifying the banks when transactions are made both nationally and internationally. Various financial institutions or banks make use of the SWIFT code and routing numbers for identifying the particular bank account. In a sense, the SWIFT code and routing numbers are the fingerprints of a bank or financial institute. If the two are used for identifying a particular bank account, then do these two have any differences? Yes, they do have certain differences between them.

A SWIFT code has 8 to 11 characters which are made up of letters and numbers. Of these, the first four letters in SWIFT denotes the bank code, the next two are the country code, the following two letters or numbers will be the location code, and the last three numbers will be the branch code. A SWIFT code can be termed as a bank’s email. The banks or financial institutions that have a SWIFT facility are capable of receiving foreign wires.

A routing number has nine digits ,and it is an account number that the bank or the financial institution has with the Federal Reserve. These nine-digit numbers are those that are seen on the bottom of the check, and it is only after these that the account number follows. The routing number is mainly used for wire transfers, check verifications, and ACH Transactions. This routing number helps to sort out and bundle them back to issuing banks.

While the SWIFT code is used for international transfers, the routing number is mainly used for domestic transactions. So a person who is doing international business is only in need of the SWIFT code.

Summary:

1.The SWIFT code or Society for Worldwide Interbank Financial Telecommunication and Routing numbers are used in financial affairs.
2.A SWIFT code has 8 to 11 characters which are made up of letters and numbers. A routing number has nine digits, and it is an account number that the bank or the financial institution has with the Federal Reserve.
3.While the SWIFT code is used for international transfers, the routing number is mainly used for domestic transactions.
4.Routing numbers are mainly used for wire transfers, check verifications, and ACH Transactions. The banks or financial institutions that have a SWIFT facility are capable of receiving foreign wires.

Sharing is caring!