All Important Banking Terms Explained – IBAN, Swift Code, Routing Number, IFSC, ACH & More

All Important Banking Terms Explained – IBAN, Swift Code, Routing Number, IFSC, ACH & More

All Important Banking Terms Explained – IBAN, Swift Code, Routing Number, IFSC, ACH & More

Banking can sometimes feel complicated because of the many technical terms used in international and local transactions. If you are a freelancer, YouTuber, or AdSense publisher in Pakistan, you must know these terms to receive payments from abroad without any issues. At MoneyToTalk, we have prepared a complete guide on the most important banking terms and codes used worldwide.

1. IBAN (International Bank Account Number)

IBAN is a unique international number assigned to your bank account. It ensures that money sent across borders reaches the correct account.

• Format: Country Code + Bank Code + Branch Code + Account Number
• Example: PK36 HABB 0000 1234 5678 9001
• Use: Required for receiving international payments (Google AdSense, Payoneer, Upwork, Fiverr)
• Where to Find: On bank statement, mobile app, or via customer service

2. SWIFT Code (Society for Worldwide Interbank Financial Telecommunication)

SWIFT Code, also known as BIC, identifies your bank during international money transfers. Without this, your payment cannot be routed properly.

• Format: 8–11 characters (Bank + Country + Location + Branch)
• Example: HABBPKKA (Habib Bank Pakistan)
• Use: Needed for international wire transfers
• Where to Find: On bank’s website or branch

3. BIC (Bank Identifier Code)

BIC is another name for the SWIFT Code. Both terms are often used interchangeably.

4. Routing Number

Routing Number is mainly used in the United States for identifying a bank branch during domestic transactions.

• Format: 9-digit number
• Use: ACH transfers, PayPal withdrawals, salary payments in the USA
• Note: Not used in Pakistan

5. IFSC (Indian Financial System Code)

IFSC is used in India to identify bank branches for electronic transactions.

• Format: 11 characters (alphabets + numbers)
• Example: SBIN0001234
• Use: For NEFT, RTGS, and IMPS transfers in India

6. ACH (Automated Clearing House)

ACH is an electronic payment system in the USA for transferring funds between banks.

• Used for salary deposits, PayPal, Stripe, and other digital payments
• Not directly used in Pakistan but important if you have a US account

7. MICR (Magnetic Ink Character Recognition)

MICR is a code printed on cheques using magnetic ink to speed up processing.

• Found at the bottom of cheques
• Helps in quick and secure cheque clearance

8. Sort Code

A Sort Code is used in the UK to identify a bank branch.

• Format: 6-digit number
• Use: Domestic bank transfers in the UK

9. Account Title

The official name of the person or company who owns the bank account. This must match the name in your official documents for international transfers.

10. Remittance

Remittance means money sent from abroad to Pakistan. For freelancers and YouTubers, international remittances usually come via SWIFT or IBAN.

11. Wire Transfer

A method of transferring money electronically between banks internationally. Usually requires IBAN + SWIFT Code.

12. Standing Instructions

An order given to the bank to make regular payments automatically (e.g., utility bills, loan installments).

13. KYC (Know Your Customer)

KYC is the process banks use to verify your identity before opening or upgrading an account. Requires CNIC, proof of address, and other documents.

14. AML (Anti-Money Laundering)

Rules and regulations banks follow to prevent illegal money transfers.

15. OTP (One-Time Password)

A unique code sent by your bank via SMS or email to confirm online transactions. It ensures security.

16. Mobile Wallet

Accounts like JazzCash and EasyPaisa are mobile wallets that allow digital transactions without traditional banking.

17. RTGS (Real-Time Gross Settlement)

An instant fund transfer system usually used for large transactions between banks.

18. NEFT (National Electronic Funds Transfer)

A common payment system in India for transferring money electronically within the country.

19. IMPS (Immediate Payment Service)

Another Indian system for instant transfers available 24/7. Equivalent to Pakistan’s Raast system.

20. Raast (Pakistan’s Instant Payment System)

Launched by the State Bank of Pakistan, Raast allows instant transfers between bank accounts using mobile numbers. It is Pakistan’s version of real-time payment systems.

Conclusion

Understanding banking terms like IBAN, SWIFT Code, Routing Number, ACH, IFSC, BIC and others is very important for anyone dealing with international payments. If you are earning from freelancing, YouTube, or AdSense, knowing these terms ensures that your payments arrive on time and without errors. At MoneyToTalk, we always recommend verifying these codes with your bank before sharing them with clients or platforms.