An IBAN number is a standard international bank account identifier. For freelancers, it's a key tool for receiving payments from overseas clients.
What is IBAN number?
An IBAN, or International Bank Account Number, is a unique code that identifies a specific bank account for cross-border payments. It's used primarily in Europe and many other countries. The number includes your country code, bank identifier, and your personal account number.
Why is this important?
For freelancers, an IBAN is crucial for getting paid by international clients. It ensures your payment is routed correctly to your bank account. Without it, international wire transfers can be delayed, rejected, or incur extra fees.
How does it work?
When a client sends you money from abroad, they use your IBAN. Your bank uses the code to identify your exact account. You simply provide your IBAN to the payer, similar to giving a domestic account number.
Pros and cons
The main pros are security, as it reduces errors, and speed for European transfers. The cons include that not all countries use it, primarily the US and Canada, and some clients may be unfamiliar with the format.
Conclusion
Understanding your IBAN is a fundamental part of freelancing internationally. It streamlines the payment process and helps you get paid securely. Always double-check the number with your client to avoid any transfer issues.
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