What the bleep is an IBAN Number and Where do I Get One

When you move overseas, you expect to encounter hurdles. You expect problems you do not expect to crop up. We assume the order of things we are used to. We come to expect our “normal”.  Truth is, you cannot anticipate what will be handled differently in a different country; and how differently that will be. Research and listening to the experiences of others is the best way to get prepared for some of these differences. 

It all Started with too Much Luggage

The first one we ran into was when we wanted to store this luggage. We did not expect this to be an insurmountable hurdle. Or even a big challenge. Let us share our experience and possibly save you some difficulty.

We quickly established that we were carrying too much stuff after pushing 3 very large bags and 2 large, American-sized  carry ons, for a couple blocks (at least 5) through Amsterdam, between bikes (thousands of them), across streets. It was all we owned at this point, and we are not prepared to shed more stuff. Just not carry it. We wanted to store it. 

Gone are the days when you can store luggage at an airport, or train station; for an indefinite period; for a reasonable charge. September 11 changed all that. 

Take it like a Hurdler: one Jump at a Time

We found a self-storage facility. just off the bus line. Just outside Amsterdam.  However, in order to enter into a contract we needed (1) our own padlock; (2) an address; (3) an IBAN Number; (4) autopay, which requires a bank account. For the address our air B&B host let us use hers. What’s an IBAN Number?  It is from your bank. Well your bank, if it is a European Bank.Okay, we’ll get a bank account. Not so easy. You need proof of permanent address, like a utility bill in your name, the air B&B is not going to work for a bank account. Does a US bank have an IBAN number. We checked; no. We could pay for the unit with a credit card, pay for a lock with a credit card, and pay for the security deposit with a credit card.  Funny quirk though, we could not get our security deposit refund to our credit card. Only to our bank account, which could not be a US bank (because no IBAN number) for the storage company to use to route our refund. Plus, even though we agreed to prepay the entire period we planned to rent this storage unit, the storage company wanted the ability to get monthly payments via autopay. So they wanted banking info. We needed a local bank account that had an IBAN account number.

IBAN Numbers

We are being told that to operate permanently in Europe, we are going to need an IBAN number over and over. So we did some research into these numbers.

IBAN stands for  International Banking Account Number.  

SWIFT Code stands for ‘Society of Worldwide Interbank Financial Telecommunications.

Europeans use this number in much the same way the USA uses the last 4 digits of your social security number. In other words, it is needed a lot. Possibly if you go to a medical clinic; or  anytime you want to subscribe to a monthly service (think cell phone, storage unit). You may need it for a long term lease. They are needed for payments when credit cards are not accepted, or a recurring charge may be needed to your checking account. These are two internationally recognized, standardized methods of identifying bank accounts when a transfer is being made from one country to another. In the US our banks do not readily provide these. They do have SWIFT codes, but that was not useful for us.  For major banks these can be found by going online and searching for “your bank” “your state”  SWIFT code or www.bank-codes.com/united-states-usa. 

A Fix for Foreigners

We found a work around that has served us, over and over.

Sign up with an online company that offers accounts to allow you to transfer money from one currency to another. There are many out there. Choose one that uses live exchange rates, has no or low fees, processes quickly, does not require minimum transfer amounts, and does not require you to make a large deposit to open your account. We use Transferwise.com.   

Transferwise.com works like a bank account where we can deposit money, and have it paid out in any currency we choose. As a side benefit, it generates IBAN numbers. We opened the account in order to get our storage unit. But we have used it several times since. We use it to wire money. It is needed often in holiday rentals between private parties.