SWIFT code vs. routing number
Quick insights
- SWIFT codes are used for international money transfers, while routing numbers are mainly used for domestic transactions within the U.S.
- SWIFT codes may contain both letters and numbers and are typically eight or 11 characters, whereas routing numbers are always nine digits.
- You may need a SWIFT code for sending or receiving funds across countries, and a routing number for tasks like direct deposit or paying bills in the U.S.
If you’ve ever needed to send or receive money, you may have been asked for a “SWIFT code” or a “routing number.” Both codes play a role in banking transactions, but they are used for different purposes and in different situations.
Knowing the difference may help you manage your financial transactions effectively, whether you’re handling everyday payments or exploring international transfers. Let’s explore how each code works and when you may need to use them.
What is a SWIFT code?
A SWIFT code is a unique identifier assigned to a bank or financial institution worldwide. The term “SWIFT code” refers to the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a global network that banks use to securely send and receive information about financial transactions. Sometimes, a SWIFT code is also called a business identifier code (BIC).
Composed of either eight or 11 characters (a combination of letters and numbers), a SWIFT code contains information about the bank’s name, country and specific branch or location. This coding system helps ensure that money sent internationally reaches the correct financial institution, regardless of geographic location.
How SWIFT codes are used
SWIFT codes are mainly required for international wire transfers. If you want to send money from your U.S. bank account to someone abroad, your bank may request the recipient’s SWIFT code to accurately identify the correct bank overseas. Similarly, if you’re receiving funds from outside the U.S., you’ll need to provide your bank’s SWIFT code to the sender.
Common scenarios where SWIFT codes may be needed include:
- Sending money to family or friends living in another country
- Receiving international payments for remote work or freelance projects
- Making tuition payments to institutions located outside the U.S.
SWIFT codes are not used for everyday domestic transactions within the U.S.; routing numbers serve that purpose.
What is a routing number?
A routing number is a nine-digit code that identifies banks and credit unions within the U.S. Developed by the American Bankers Association (ABA), routing numbers were originally created to process checks more efficiently and are now used to route electronic payments, direct deposits and wire transfers within the U.S. banking system.
Every U.S. bank or credit union has at least one routing number, and larger institutions may have several depending on location or account type. The routing number works in tandem with your account number to help ensure that funds reach the correct account at the right bank.
How routing numbers are used
Routing numbers are necessary for a variety of domestic banking tasks. For example, if you set up direct deposit for your paycheck, your employer will require your account number and routing number to deposit funds.
When you pay bills online, transfer money between banks or receive government benefits, your routing number is often needed. You may also need your routing number for:
- Setting up automatic payments such as utilities or subscriptions
- Receiving tax refunds or other government disbursements
- Transferring money between accounts at different U.S. banks
- Linking your checking account to payment apps or online services
Routing numbers are only used for transactions within the U.S. For any international transfer, a SWIFT code is typically used instead.
Differences between SWIFT codes and routing numbers
While both SWIFT codes and routing numbers serve to identify banks and facilitate money movement, their functions and formats are different. Understanding these differences may help you select the appropriate code for your transaction and avoid delays or errors.
- Type of transaction: SWIFT codes are required for international transfers, while routing numbers are used for domestic U.S. transactions.
- Format: SWIFT codes have eight or 11 characters (including letters and numbers), while routing numbers are always nine digits.
- Geographic use: SWIFT codes identify banks globally. Routing numbers are specific to banks and branches within the U.S.
- Purpose: SWIFT codes are for sending or receiving money internationally. Routing numbers are for direct deposits, electronic payments and domestic wire transfers.
By recognizing these differences, you may be better able to determine which code is appropriate for your specific transaction.
When to use SWIFT codes and routing numbers
The type of code you need depends on the destination of your funds and the nature of your transaction. Here are some tips on how to decide:
- You'll need to use a SWIFT code when sending or receiving money to or from another country. For example, if you’re making a payment to a family member in Europe, you’ll need the recipient’s SWIFT code.
- Use a routing number for transactions within the U.S. such as setting up direct deposit, paying bills online or transferring money between U.S. banks.
If you’re not sure which code to use, your financial institution may be able to provide guidance. Many banks, including Chase, offer digital banking resources, which may allow you to quickly access your routing number and obtain advice on wire transfers.
How to locate SWIFT codes and routing numbers
Ensuring you have the correct code is essential for a successful transaction. Here’s how you may find each:
- SWIFT codes: These are often listed on your bank’s website, typically in the frequently asked questions (FAQs) section or on your account statements. You may also contact your bank’s customer service for the correct SWIFT code or locate it within your bank’s digital banking platform.
- Routing numbers: The routing number is the first set of nine digits at the bottom left corner of your paper checks. You may also find it in your online banking account, mobile app or by searching your bank’s website.
If you need help, your bank’s digital tools and customer service team may be able to provide the information required for your transaction.
In summary
SWIFT codes and routing numbers can be helpful tools for moving money, each designed to serve a specific purpose. SWIFT codes are used for international transfers and help identify banks worldwide, while routing numbers are used for domestic transactions within the U.S. and help ensure that funds are directed to the correct bank and branch.
Knowing which code to use and how to find it may help you manage your money efficiently, avoid unnecessary delays and handle domestic and international transactions with more confidence.
Digital banking tools may make it easy to access the SWIFT codes and routing numbers you need, right when you need them.
