Definition of Confusing banking terms
What is Giropay / Paydirekt?
Giropay and Paydirekt are two schemes offered by German banks that allow you to pay online using your debit card. Once registered, you can use a username and password or PIN to securely pay for goods.
What is the SEPA?
SEPA (Single Euro Payments Area) is an initiative of the European Union that came into effect on February 1, 2014. It affects bank transfers of euros, seeking to improve the efficiency of cross-border payments.
Using your IBAN, you can make or receive payments to any account located in the SEPA.
What is my IBAN?
IBAN means International Bank Account Number.
It is a unique number that identifies your country, bank and account number in a way that can be understood by financial institutions worldwide.
Your IBAN will be included on any correspondence you receive from your German bank, and also sometimes on the front of your debit card.
What is my BIC?
BIC means Bank Identification Code, or Bank Identifier Code.
It is an 8 to 11-character number that is used to identify a specific bank when you make an international transaction.
It’s almost like a post-code for your bank, ensuring that your money goes to the right place.