Friday, 22 July 2016

What is the Difference Between SWIFT Code and Sort Code????

Sometimes you may have come across or heard someone talking about SORT codes and SWIFT Codes. You need those Codes to do any transferring of money from one bank to another bank, either within the country or outside the country. Even some online transaction you will do, you may be required to provide your Bank SORT Codes or SWIFT Codes. In this post, you will learn the meaning and different between SORT Codes and SWIFT Codes.
 

Let continue...........

Hints:
SWIFT code and sort code are two terms that are related to banking, especially when it comes to transferring money. SWIFT code and sort code are two ways used to transfer money. Moreover, these two codes serve as helpful methods in transferring money conveniently and securely. If they are both used for transferring money, what is the difference between the SWIFT code and sort code? This article will explain you that clearly.

What is SWIFT Code?
SWIFT which mean Society for Worldwide Interbank Financial Telecommunication. SWIFT code is an unique identification code for financial and non-financial institutions when it comes to executing international wire transfers and for the exchange of messages between banks. E.g Whenever money needs to be transferred to a person living in another country, along with the relevant account details, the SWIFT code of the bank that carries out the transaction, will be required.

What is Sort Code?
Sort code is the UK and Irish version of the routing number and is used to route money transfers between financial institutions within their respective countries through their respective clearing houses. Sort code is a six-digit number, usually formatted in three pairs, and it identifies both the bank and the branch where the account is. It is used only for domestic transfers.

What is the difference between SWIFT Code and Sort Code?
SWIFT Code and Sort Code are two numbers that are used when it comes to transferring money. Although they may be mistaken for one another at times, there exist certain differences between them that can be used to tell them apart. The main difference between the SWIFT code and the sort code is where they are used. E.g: If someone living in the United Kingdom or Nigeria, transfer money domestically into their accounts  the sort code of the recipient’s account needs to be obtained in order to transfer money domestically into their accounts. 

If money needs to be transferred between the two countries or anywhere else internationally, the SWIFT code and other required account details need to be obtained. While the sort code is a six digit number in three pairs identifying a UK bank and its branch, a SWIFT code is an alphanumeric code identifying the bank and the country.

 In general, to transfer money internationally, the SWIFT code is required. But, for British or Irish citizens who are transferring money within the country, the sort code is needed.

In Summary: SWIFT Code vs Sort Code
• The SWIFT code is an alphanumeric international code that you use in order for you to send money to another country. It identifies the country and bank of your recipient’s account.
• The sort code is a six digit code in three pairs (e.g  12-34-56) that is used by different countries banks for domestic money transfers.
Take note that a transfer from one country (e.g Nigeria) account to another country (e.g U.S.A) account is considered as an international transfer.

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