1. Payments Core User Guide
  2. Payments Core Processes
  3. Common Processes
  4. IBAN Check

IBAN Check

If ‘IBAN validation required’ flag is checked for the network, then IBAN verification for Debtor IBAN, Creditor IBAN & creditor BIC is done against the IBAN format maintained for the respective country.

IBAN is validated based on IBAN Information maintenance (ISDESBAN) available for the country for the following parameters:
  • IBAN length
  • Check digit of the IBAN
  • National ID of the IBAN
Check digit of the beneficiary IBAN must be validated using the below mentioned process:
  • Extract country code from the IBAN
  • Search the IBAN check digit length and IBAN check digit position for the country code from the IBAN structure data storage.
  • Extract the check digit from IBAN using IBAN check digit length and IBAN check digit position.
  • Compute the check digit from IBAN using the scheme defined in ISO/IEC 7064 Modulo 97-10.
  • Compare the check digit value computed and the check digit value extracted from IBAN.
National ID of the beneficiary IBAN must be validated using the below mentioned process:
  • Extract the IBAN National id from IBAN using bank identifier position and IBAN national ID length.
  • Extract the IBAN ISO country code from IBANPlus data storage for the IBAN national id.
  • Compare the IBAN ISO country code from IBANPlus with the country code extracted from IBAN.
  • If the all of the above conditions are satisfied, then the IBAN is valid.

Validate BIC from an IBAN by looking up IBANPlus, if available. For payment transaction the beneficiary Bank code is checked for Valid BIC based on the beneficiary IBAN. The BIC will be derived from IBAN using the below mentioned process:

Extract country code from the IBAN

  • Search the bank identifier position and IBAN national ID length for the country code from the IBAN structure data storage.
  • Extract the IBAN National id from IBAN using bank identifier position and IBAN national ID length.
  • Search the IBAN BIC for the IBAN National id and country code from the IBANPlus data storage.
  • If the IBAN BIC and Account with Institution BIC code (Creditor Agent BICFI for Outbound ISO transaction) does not match, then it displays ans error that Account with Institution BIC is not valid.

Parent topic: Common Processes