Answer #1

In general, swift codes and routing numbers are both identification codes applied by financial institutions to determine the bank where a specific account or transaction is created.

However, both codes are different from each other and should not be confused as one and the same. Some financial transactions may be in need of swift code only while others will include routing numbers. It is important to know what bank identification code is required in order to make a successful business deal.

Swift codes, on one hand, are bank identification codes used to recognize banks whenever a transaction is done, either money being sent out or money received through wire transfers. It usually consists of at least 8 or a maximum of 11 aplha-numeric characters. In an 8 digit alphanumeric swift code the first four characters composed of random alphabets that stands as bank codes, the next two characters represents a country code, and the final two characters (either letters or numbers) depicts the location of the bank where the account is created. And if the code uses 11 alphanumeric digits, the remaining three numbers at the end of the code simply represents the bank’s branch code.

Routing numbers, on the other hand, are identification codes printed on bank cheques (checks). It normally consists of 9 digit numbers unlike swift codes that has alphanumeric codes. It is used to help financial institutions to classify, organize, and transport paper checks back to the account where they are issued. Routing numbers are also used by financial institutions in processing direct withdrawals and deposits, paper drafts, and payment of bills.

By using swift codes and routing numbers, it makes financial and banking transaction much safer and easier. One can now deposit or withdraw money anywhere at any time.

Another difference between the two is that swift codes are normally used for international transactions whereas routing numbers are usually used for domestic transactions only. But, it is still important to know both codes just in case you may need them.

Answered By: khristine [216 ]