What is an institution number?
What is a SWIFT code?
A SWIFT code is a global identifier for banks that enables secure and consistent international money transfers. Made up of 8 to 11 characters, it encodes information about the bank, country, city, and specific branch. These codes help ensure international wire payments are accurately directed between financial institutions.
For companies handling cross-border payments, payroll, or vendor transfers, it's important to always double-check the SWIFT code with your bank or the recipient before initiating an international payment. An incorrect code can lead to failed transfers or funds being sent to the wrong institution.
What is a routing and transit number?
In Canadian banking, a transit number is a five-digit code that identifies the specific branch where a bank account was opened. It plays a key role in processing transactions such as electronic funds transfers (EFTs), direct deposits, bill payments, and wire transfers.
A routing number in Canada is a nine-digit code used to identify a specific bank branch during financial transactions. It combines two elements:
- Transit number (5 digits): Identifies the branch.
- Institution number (3 digits): Identifies the financial institution (e.g., RBC’s institution number is 003).
Canadian routing numbers follow a single nine-digit Electronic Funds Transfer (EFT) pattern:
- 0 – leading zero
- YYY – institution number
- XXXXX – transit number
For example, a branch with transit number 12345 and RBC’s institution number 003, the routing number would be: 000312345
Accurate routing numbers are critical when setting up direct deposit for employees, paying suppliers, receiving customer payments, or integrating with accounting and payment platforms. Using incorrect banking details can delay transactions or cause payment failures.
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Bank Codes FAQ
The institution number is a 3-digit code that identifies your bank. The branch number (also known as the transit number) is a 5-digit code that identifies the specific branch of your bank. Combined, these numbers make up your routing number.
What is an account number? Your account number is a unique identifier assigned to your personal or business bank account. It’s typically 7 to 12 digits long and is used to direct deposits, withdrawals, and other transactions to the correct account. You’ll find it on your bank statement, online banking profile, or at the bottom of your checks.
A SWIFT code (also known as a BIC, Bank Identifier Code) is an international standard used by businesses to securely send and receive international payments. It’s typically 8 to 11 characters long and ensures that international money transfers are sent to the correct bank. You’ll need a SWIFT code when sending or receiving money from abroad.
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