How to Use IBAN for P2P Transfers: A Practical and Safe Guide

When you need to send money to a friend or receive a payment quickly and securely, the modern solution is a standardized code that has simplified the lives of millions: the IBAN. But how exactly does this system work? And why is it so important today? This practical guide answers all these questions.

Understanding the IBAN standard and its importance

The IBAN (International Bank Account Number) represents a significant advancement in the global financial system. Created to standardize transfers between banking institutions in different countries, the IBAN ensures your payments reach the correct destination, regardless of borders. In Ukraine, this system became mandatory in 2019, completely transforming users’ experience with domestic and international banking operations.

The major change was a drastic reduction in transfer errors. Before IBAN, small deviations in account numbers could result in money being sent to the wrong person or even lost. Now, the system automatically verifies data accuracy, providing greater security in every transaction.

Structure and components of the Ukrainian IBAN

To better understand how it works, it’s important to know the components that make up the IBAN. This code has 29 characters, each with a specific purpose:

• UA – country identification (Ukraine)
• Two check digits – responsible for detecting any typing errors
• Bank code – identifies which bank is processing the transaction
• Account number – the unique identifier of your account at that bank

A practical example of a Ukrainian IBAN is: UA1234567890123456789012345678.

To generate your own IBAN, the system uses unique identification codes:

• Individuals use the RNOKPP, a 10-digit code (formerly called TIN)
• Legal entities use the EDRPOU, an 8-digit code

These identifiers ensure each IBAN is unique and specifically linked to its holder, preventing confusion and ensuring correct deposit of funds.

Step-by-step: making P2P transactions with IBAN

Peer-to-peer (P2P) transfers are direct operations between two individuals, without intermediaries. The process is simple and can be completed in minutes through your banking app. Here’s how:

Step 1: get the recipient’s IBAN
Request the IBAN code from the person receiving the money. Usually, you can find this information in the recipient’s banking app or ask them directly.

Step 2: carefully verify all characters
This is the most critical step. Review the IBAN digit by digit before confirming. A single mistake can compromise the entire operation, even if it seems insignificant.

Step 3: specify the reason for the payment
Clearly indicate what the transfer is for: order payment, contract settlement, utility bill, among others. This detail helps the bank classify the transaction correctly.

Step 4: confirm via app or ATM
Most Ukrainian banks offer intuitive apps that allow quick IBAN transfers. You can also use ATMs to perform the operation.

Security, speed, and benefits of IBAN

Participating banks in the modern electronic payment system process IBAN operations between 1:30 and 22:30, with transactions usually credited within an hour during this period. Surprisingly, many institutions also process these payments on weekends, increasing flexibility.

The main benefits of IBAN include:

Guaranteed accuracy
The automatic verification system drastically reduces errors in transfers, increasing the reliability of financial operations.

Fast processing
During business hours, transactions are completed within 60 minutes for domestic transfers, a significant improvement compared to older systems that took days.

Global standardization
As an international code, it facilitates not only domestic payments but also international transactions with the same simplicity.

What to do when IBAN doesn’t work

Sometimes, even after following all procedures correctly, the transfer may not be credited within the estimated hour. Don’t worry – there are several reasons why this might happen.

If after an hour the money hasn’t arrived, it’s recommended to wait until the end of the business day. The bank might still be processing the transaction, especially if the request was made near closing time or during weekends.

If the issue persists after the banking day ends, contact your bank’s customer service immediately. They have tools to track the transaction and resolve any issues that may have occurred during the transfer process.

Understanding how to properly use IBAN transforms the way you manage your financial transfers. With correct practices and knowledge of processing times, IBAN becomes a powerful tool for quick, secure, and convenient transactions.