You need an IBAN whenever you send or receive money from countries that use the IBAN system. Common scenarios include:
Entering an incorrect IBAN can disrupt your international payment. Banks may reject the transfer instantly if the checksum fails, or if the checksum is valid but the details are wrong, or the payment may even go to the wrong branch or account. Some banks return the funds automatically, while others may hold it for manual investigation. You may be charged return or investigation fees too.
Incorrect IBAN length
Missing or extra characters compared to the country’s fixed IBAN length.
Invalid check digits
The checksum doesn’t match the MOD-97 calculation, making the IBAN invalid.
Wrong country code
Using an incorrect or non-IBAN country code in the first two letters.
Typing mistakes in the BBAN
A wrong digit in the bank or account number, often caused by manual entry.