What does the acronym IBAN stand for in international banking?

IBAN stands for International Bank Account Number.

The IBAN system standardizes how bank accounts are identified for cross-border payments. An IBAN begins with a country code and check digits, followed by a country-specific basic bank account number. The exact length and internal structure therefore vary between countries.

The standard was developed to reduce errors and delays in international electronic payments. Banks can use the check digits to detect many mistyped account numbers before processing a transfer.

IBAN is often confused with SWIFT or BIC. An IBAN identifies a particular bank account, while a BIC identifies a financial institution or branch for routing messages. Some countries use IBAN widely for domestic payments, while others, including the United States, do not generally use the IBAN system.