IBAN
(International Bank Account Number) is the standardised account identifier used across Europe, the Middle East and beyond — a country code, check digits and the domestic account reference in one string. Payroll and SEPA payments rely on it; a wrong IBAN is the classic cause of failed salary runs.
IBAN in payroll operations
Payroll files carry IBANs for every employee; the check digits let systems validate structure before submission, which is why collection at onboarding should be validated electronically, not typed from photos of cards. Name-matching rules (verification-of-payee) now applying across SEPA add a second check — mismatched beneficiary names delay salaries.
Non-IBAN countries in a global payroll (parts of Asia, the Americas) use local formats; treasury processes should not assume IBAN universality.
FAQ
Is an IBAN enough to pay a salary abroad?
Within SEPA, yes — IBAN alone is mandated. Outside, pair it with a BIC/SWIFT code and, for some corridors, local routing details and purpose codes. The employee’s payslip currency and the account currency should also match expectations, or conversion fees land on the employee.
Why did a payment fail with a valid IBAN?
Usual suspects: closed or wrong-currency accounts, beneficiary-name mismatches under verification-of-payee, sanctions or compliance holds, or truncated data in the payroll file. Validation at collection plus a pre-payday test run for new accounts removes most failures.