What is a SWIFT Code and Why It Matters in International Remittance

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Last update : September 1st, 2025 : 10.50 AM

If you've ever tried sending or receiving money from another country, chances are someone has mentioned a "SWIFT code."

At first, it might sound like some kind of spy gadget or computer jargon but in the world of international banking, it’s actually one of the most important details you’ll need. So, what exactly is a SWIFT code, and why does it matter so much in international remittances? Let’s break it down in simple terms.

A digital illustration showing a woman, a globe, dollar icons, a bank building, and a document labeled with a SWIFT code example (CHASUS33XX), visually representing the role of SWIFT codes in international money transfers.

What is a SWIFT Code, Really?
SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. In plain English, it’s the global system banks use to communicate securely with each other.

When you’re sending money internationally whether through your bank or a remittance service the transaction needs to be directed to the exact bank and even the specific branch of the recipient. That’s where a SWIFT code comes in.

A typical SWIFT code looks something like this: CHASUS33XXX. Here’s what each part means:

• CHAS = Bank code (JPMorgan Chase) 

• US = Country code (United States)

• 33 = Location code • XXX = Optional branch identifier

Think of it like the bank’s international “address” for receiving money. Without it, your money could easily get lost in the global banking network. Why SWIFT Codes Are So Important

Imagine your cousin in Canada wants to send money to your bank account in Indonesia. Her bank will ask for two main things:

1. Your bank account number 

2. The SWIFT code of your Indonesian bank

Without the correct SWIFT code, the transfer might be delayed, misrouted, or even rejected entirely.

This becomes especially important for freelancers, digital nomads, international students, and overseas workers who rely on smooth international payments. A small typo in the SWIFT code can cause a lot of headaches delays, fees, or lost payments.

You may read - How SWIFT Codes Keep Your Money Safe Across Borders

Example Scenario: Sending Money to Bank Mandiri in Jakarta
Let’s say you’re a content creator in Jakarta, working with clients from the US. One of your clients wants to pay you via bank transfer. Here’s the info you’d provide:

• Your account number 

• Your full name as registered with the bank 

• The SWIFT code: BMRIIDJA (Bank Mandiri, Jakarta)

 

With this information, your client’s bank can send the payment directly to your local account. Depending on the banks involved, you’ll usually receive the money within 1–3 business days. That’s the speed and reliability a SWIFT code provides.

How to Find Your SWIFT Code
Finding a SWIFT code is easy. Here are the most reliable ways:

• Bank’s official website: Most banks list their SWIFT codes in the FAQ or support section. 

• Online banking profile: Many banks include it on account details pages. 

• Customer service: A quick call or chat with your bank’s support team will get you the correct code. 

• Official SWIFT directories: The SWIFT organization itself provides a search tool for all registered codes.

Quick Tip: Avoid unofficial third-party websites some may have outdated or incorrect information. Always double-check!

Don’t Confuse It With IBAN
Some countries use an IBAN (International Bank Account Number). While a SWIFT code tells which bank to send money to, an IBAN identifies your specific account within that bank.

For international transfers, some countries may require both. Think of SWIFT as the street address and IBAN as the apartment number.

Fun Facts About SWIFT Codes
• Over 11,000 financial institutions in more than 200 countries use SWIFT codes. That’s nearly every bank you could possibly send money to around the world! • SWIFT transactions are known for their security, accuracy, and speed — all thanks to standardized codes and strict protocols. • Some banks have multiple SWIFT codes for different branches, so always double-check with your bank before sending a transfer.

Common Mistakes to Avoid
Even though SWIFT codes are simple, mistakes happen. Here’s what to watch out for:
• Typo in the code: One wrong letter or number can misroute your payment. • Using an old or incorrect code: Banks sometimes change branch codes or merge branches. Always verify before sending money. • Omitting the branch identifier: Optional, yes, but some banks require it for faster processing.

A few minutes of double-checking now can save you hours (or even days) of waiting later.

When SWIFT Codes Make Life Easier
If you regularly receive money from overseas or make international payments, SWIFT codes are your best friends. Here’s why:

• Freelancers: Get paid quickly by international clients. 

• Students abroad: Tuition fees and allowances arrive on time. 

• Families sending support: Remittances reach loved ones safely. 

• Businesses: Cross-border transactions run smoothly without unnecessary delays.

  Conclusion
Understanding what a SWIFT code is can save you from a lot of stress and confusion when handling international remittances. It may look like just a string of letters and numbers, but this little code ensures your money gets where it needs to go quickly and securely.

Whether you’re sending money to family, getting paid by clients abroad, or receiving support from overseas, knowing your SWIFT code is essential. So next time someone asks for it, you’ll know exactly what to say and why it matters.

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