Interbank Payments & SWIFT Glossary
Select a term to view its formal definition, standard reference origins, and related interbank clearing standards.
A
ABA Routing Transit Number
An ABA Routing Transit Number (RTN) is a 9-digit numerical code assigned to financial institutions in the United States, used to identify the bank responsible for domestic clearing. RTNs are managed by Accuity on behalf of the American Bankers Association and are used for ACH and Fedwire clearings.
ACH (Automated Clearing House)
An Automated Clearing House (ACH) is a batch-processing electronic funds transfer network used to clear high-volume, low-value domestic retail transactions. In the United States, the ACH network is governed by Nacha and processes direct deposits, consumer bills, and B2B clearings.
B
BBAN (Basic Bank Account Number)
A Basic Bank Account Number (BBAN) is the domestic account identifier that forms the country-specific core of an International Bank Account Number (IBAN). The length and structure of the BBAN are determined by each country's central bank or banking authority, and it typically contains the domestic bank identifier, branch code, and account number.
BIC (Business Identifier Code)
A Business Identifier Code (BIC) is a standardized 8 or 11 character code defined by ISO 9362 used to uniquely identify financial and non-financial institutions globally. BICs are primarily processed by the SWIFT network to route cross-border payment instructions, letters of credit, and treasury messages safely between correspondent banks.
BIC11
A BIC11 is the 11-character variant of a SWIFT/BIC code that identifies a specific branch, division, or logical terminal of a financial institution. It consists of the core 8-character BIC8 followed by a 3-character branch suffix (e.g., 'XXX' for the main head office).
BIC8
A BIC8 is the 8-character variant of a SWIFT/BIC code that identifies the primary headquarters or central office of a financial institution. It contains the 4-letter institution code, 2-letter ISO country code, and 2-character location code, omitting the specific branch modifier.
BSB Code (Bank State Branch)
A Bank State Branch (BSB) code is a 6-digit clearing identifier used in Australia to identify the specific bank, state, and branch location of a financial account. BSB codes are standard components of Australian BBANs for routing domestic electronic bank transfers.
C
CHAPS
The Clearing House Automated Payment System (CHAPS) is the UK's high-value, real-time gross settlement (RTGS) clearing system for sterling-denominated payments, managed by the Bank of England. It is used for high-value transactions that require absolute settlement finality on the same day.
CHIPS (Clearing House Interbank Payments System)
The Clearing House Interbank Payments System (CHIPS) is the primary private US interbank clearing network for large-value domestic and international USD transactions. Settled in real-time through a clearing ledger, it processes transactions representing the majority of international USD wire volume.
CHIPS Universal Identifier (UID)
A CHIPS Universal Identifier (UID) is a 6-digit clearing code assigned to financial institutions participating directly in the CHIPS network. It is used alongside or instead of a SWIFT BIC to identify clearing nodes within the CHIPS ledger database.
Clearing Code
A Clearing Code is a country-specific national bank routing identifier used to clear domestic payments within local central bank net-settlement architectures. Examples include Sort Codes in the UK, ABA routing numbers in the US, and BSB codes in Australia.
F
Fedwire
Fedwire is a real-time gross settlement (RTGS) system operated by the Federal Reserve Banks, used by US financial institutions to settle large, time-sensitive USD transactions. Transactions settled via Fedwire are final and irrevocable upon execution, routing via 9-digit ABA transit numbers.
G
GLEIF
The Global Legal Entity Identifier Foundation (GLEIF) is the non-profit organization established by the Financial Stability Board to oversee and maintain the global Legal Entity Identifier (LEI) system. GLEIF hosts the global master LEI database and partners with SWIFT to map BICs to LEIs.
I
IBAN (International Bank Account Number)
An International Bank Account Number (IBAN) is an internationally agreed system of identifying bank accounts across national borders, structured according to ISO 13616. An IBAN consists of a 2-letter country code, 2 check digits, and up to 30 alphanumeric characters identifying the bank, branch, and individual account number.
IFSC (Indian Financial System Code)
The Indian Financial System Code (IFSC) is an 11-character alphanumeric clearing code used by the Reserve Bank of India to identify individual bank branches participating in domestic electronic funds transfer networks like NEFT and RTGS. It is formatted with 4 letters for the bank, a zero, and 6 branch digits.
ISO 20022
ISO 20022 is the international standard governing financial messaging, replacing legacy MT formats with rich XML-based schemas (MX messages). It provides structured, consistent data schemas for cross-border payments, capturing detailed bank, clearing, and regulatory identifiers.
ISO 7064
ISO 7064 specifies mathematical check character systems used for security and verification across financial transactions, governing algorithm models like Modulus 97-10. It defines the checksum arithmetic utilized to validate IBANs and other identifiers prior to routing.
ISO 9362
ISO 9362 is the international standard governing the formatting and structural validation rules of Business Identifier Codes (BICs). Maintained by SWIFT as the registration authority, it dictates how characters must represent the institution, country, location, and branch of a financial entity.
L
LEI (Legal Entity Identifier)
A Legal Entity Identifier (LEI) is a 20-character alphanumeric code structured according to ISO 17442, used to uniquely identify distinct legal entities participating in global financial markets. LEIs help regulators and market participants track transactions, credit exposures, and entity hierarchies.
M
Modulus 97 Checksum
Modulus 97 is the algebraic algorithm defined by ISO 7064 MOD-97-10 used to check the mathematical validity of bank account identifiers, including IBANs. The algorithm converts alphanumeric characters to numbers, performs modulo-97 division, and verifies that the remainder equals 1 to detect entry errors.
N
Nostro Account
A Nostro Account is a foreign currency bank account held by a domestic financial institution at a correspondent bank in another country (literally meaning 'our account with you'). Nostro accounts allow banks to settle cross-border transfers directly through clearing links.
R
Routing Transit Number (RTN)
A Routing Transit Number (RTN) is a specific US domestic financial identifier assigned to banks and credit unions to clear checks and ACH transfers. See American Bankers Association (ABA) Routing Transit Number.
S
SEPA (Single Euro Payments Area)
The Single Euro Payments Area (SEPA) is a payment-integration initiative of the European Union that simplifies euro-denominated bank transfers across participating European countries. SEPA transfers utilize IBANs to standardize transactions, treating domestic and cross-border transfers within the eurozone identically.
SEPA Instant Credit Transfer
SEPA Instant Credit Transfer is an interbank payment scheme that enables euro transfers to execute in real-time, completing settlement within 10 seconds. Rerouting via participants' IBANs, it is active 24/7/365 across participating European Union states.
Sort Code
A Sort Code is a 6-digit clearing identifier used by British and Irish banks to route domestic transactions through local clearing systems such as BACS, CHAPS, and Faster Payments. The digits are grouped in pairs (e.g., 20-00-00) and represent the specific bank and branch handling the account.
SWIFT
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a member-owned cooperative that provides the secure messaging platform used by financial institutions globally. SWIFT does not clear or settle funds directly; instead, it transmits standardized financial transactions and instructions between correspondent accounts.
T
Target2
Target2 is the real-time gross settlement (RTGS) system owned and operated by the Eurosystem, used to settle large-value eurozone interbank payments. It ensures final and irrevocable settlement of transactions, operating through participant BICs and central banks.
Z
Zengin System
The Zengin System is Japan's national interbank payment clearing network, processing domestic bank transfers in real-time. It connects Japanese commercial banks through standardized bank and branch code clearings, operating as one of the oldest RTGS structures in Asia.