Position 8 in one table
| 8th character | What Swift says | What to do |
|---|---|---|
| 0 (zero) | BICs with 0 in position 8 "are addresses only used for the T&T service", Swift's test and training environment (Swift) | Do not use it for a real payment. Ask the bank for its live code |
| 1 | The BIC policy's example of a non-connected BIC, which cannot send or receive messages or files over Swift (SWIFT policy). Swift stopped issuing codes ending in 1 after November 2018 (Swift) | It can be a valid older code. Ask the bank whether it is the one for your payment |
| Anything else | No meaning of its own since the revision | Nothing to read into it |
The checker flags both cases: a warning for 0, a note for 1.
Connected and non-connected BICs
Swift's FAQ explains that institutions meeting Swift's eligibility criteria are "often referred to as 'connected BICs'", while BICs "solely used for identification purposes" are often called unconnected (Swift FAQ). The BIC policy adds that party identifiers in messages can be connected or non-connected, but must be valid and published (SWIFT policy).
Why it matters to you: a code can be a real, published BIC and still not be one a bank receives payment messages on. A well-formed code is therefore not proof that it is the right code for your payment. The bank's own instructions decide.
The standard and the registry
The BIC is defined in ISO 9362, and Swift is the registration authority appointed by ISO to allocate and issue BICs (Swift FAQ). Swift's information paper describes the revision from the 2009 edition to the 2014 edition. Its text says ISO approved it in January 2014; its timeline graphic says December 2013 (Swift).
What changed in the names
| Old term | New term | What Swift says |
|---|---|---|
| Institution code (1-4) | Party prefix | ISO allows letters and digits; Swift has always issued letters only and has no plan to issue digits there |
| Location code (7-8) | Party suffix | 2 letters or digits with no specific meaning; location and time zone move to directory attributes |
| Country code (5-6) | Unchanged | Also published as directory attributes |
| Branch code (9-11) | Branch identifier, optional | A branch now needs a described organizational unit and operational address in the data record |
The format stays 8 characters plus an optional 3-character branch code (Swift). The current BIC policy of January 20, 2023 uses the revised words, and states the format SWIFT applies on its FIN service as 4!a2!a2!c[3!c]: four letters, two letters, two letters or digits, and, if present, three more letters or digits (SWIFT policy).
Position 8 before and after
Under the old scheme, a 1 in position 8 meant the code was not connected to SwiftNet FIN. The revision removed that network meaning: connectivity became a directory attribute, and users should no longer compute it from position 8. Existing BICs were not changed (Swift). The 2023 policy still gives an 8-character BIC with 1 in position 8 as its example of a non-connected BIC.
What this means for you: do not guess from the characters whether a bank is connected. The directory says so, and the bank's instructions say which code to use.
Other points from the paper
- Each BIC record has mandatory reference attributes such as legal name and registered address. The owner must keep it up to date and confirm its accuracy at least once a year.
- When a BIC stops being used, its record is marked expired with a date, not deleted.
- Systems should not derive ownership, location or time zone from the characters of the prefix or suffix.
Codes we ran through it
| Code | Position 8 | Reading |
|---|---|---|
| CHASUS33 | 3 | Nothing special; Chase publishes it for incoming international wires (Chase) |
| ZZZZDEF0 | 0 | Test and training address shape; not for payments |
| ZZZZGB21 | 1 | An older non-connected shape; ask the bank |
The last two are made-up codes used to show the rule, not real banks. See also how the code is built and before you send money.