Swift code is a code that is assigned to the instructions so that it will be helpful in the foreign market for the identity. While the routing number is a number that consists of nine-digit within itself and is used for the identification of our transactions identity.
Swift Code vs Routing Numbers
The main difference between swift code and routing number is that in swift code the main structure contains four categories which are bank code country code location code and the branch code while when we talk about routing number it does not have any categories it just consists of nine digits in it.
The swift code contains the important pieces of information about the finance and communities via a secured SWIFT network(Society for Worldwide Interbank Financial Telecommunication) so that we can have a verification that the fund is transferred or not to the correct place and the correct person.
Routing numbers this is also known as the US routing number which is needed by the bank for the payment we have to send. This number is adopted by the United States in the year 1910 and now also it is in use for the instructions of the sending receiving the money.
Comparison Table Between Swift Code and Routing Numbers
| Parameters of Comparison | Swift Code | Routing numbers |
| Definition | This is a code that is assigned to the instruction so that it will be helpful in the foreign market for the identity. | This is consists of nine-digit within itself and used for the identification of our transactions identity. |
| Usage | Used at the international transactions | Used at the domestic transactions |
| Identifier | It is the identifier of The bank of international ground | It is the identifier of The bank at the national level. |
| Present | We get the swift code on the bank statement when we do the online banking | We get the routing number on the cheque, on our online banking website. |
| Example | CIIAUS6L | 123445634 |
What is Swift Code?
Swift code is used when the person or the individual sends the money or we can say that they transfer money to the international recipient or in the other country.
This code comprises vital bits of information about money and communities that are transmitted through a secure SWIFT network, which stands for Society for Worldwide Interbank Financial Telecommunication; so that we can verify whether or not the funds have been transferred to the proper location and person.
The format of this code is ranged from 8 to 11 characters which contain alphabets and numbers. And they are categories into 4 categories that are the address, branch number, branch, and at last the country. AAAABBCCDDD(example of swift code) here the AAAA determines the bank code BB determines the country code CC determines the location code and the last part DDD determines the branch code of the bank.
The main work of this code is to send and receive a secured message which floats between the bank and the financial instructions so that the payment is happened successfully and at the correct location. as the fund is not transferred physically here the work is all online. the swift code is used in many countries places sich as it contains more than 11000 instructions regarding finance and is available in 212 countries
What is Routing Number?
Routing and dialing codes are also known as the US routing number, and it is required by the bank in order for us to transfer the payment. This number was introduced by the United States in 1910, and it is still used for the instructions for sending and receiving money.
The formate of this number contains 9 digits within itself and that code refers to the bank location we can also tell them as the ABA routing number or the other name is routing transit number(RTN). And as the swift code is divided into categories this number is not divided they appear the same as 123456789. (Example of the routing number). The main work of routing numbers is to identify the financial instructions are in United Staten or not.
And it is a guaranteed way for the banks and to all in case of find sending and receiving matter. This is manually used in the US so that it will identify the country and the specific location of that code. we can find the routing number when there is a transaction from the phone by online means to when cashing through the cheque, or when we send the money to another country like from the US to India that time the routing number is used.
Main Differences Between Swift Code and Routing Numbers
- Swift code is a code which is assigned to the instructions as that it will be helpful in the foreign market for the identity whereas routing is consists of nine-digit within itself and used for the identification of our transactions identity
- Swift code is used for international transactions whereas routing is Used for the domestic transactions
- Swift code is the identifier of The bank of international ground whereas routing is the identifier of The bank at the national level.
- Swift code is present on the bank statement when we do the online banking whereas routing is present on the cheque, on our online banking website.
- Swift code writing format is AAAABBCCDDD whereas routing writing format is 123456789 (consists of nine numbers)
Conclusion
From the above content, we can say that both swift code and the routing number are the main instructive parts in the banks that help in the fund transfer.
As when we are making the payment or the fund transfer out oh the country we van say internationally so we needed the secured code which are swift code (Society for Worldwide Interbank Financial Telecommunication) and the routing number and when you are transferring the money using the swift code we don’t need the routing number and vice versa.
As we just want the code and the bank account number for the transactions. And the main purpose of these two codes is the identification of the bank.
References
- https://ieeexplore.ieee.org/abstract/document/6569861/