Payment Details
What is it
The instructions on how the client should transfer the funds. It includes bank account numbers, IBAN, SWIFT/BIC, or payment links.
When is it required
Always. The easier you make it to pay, the faster you get paid. Missing details stops the process cold.
Banking standards
| Standard | Used In | Components |
|---|---|---|
| IBAN | EU / Global | International Bank Account Number. Standardized format for identifying accounts globally. |
| SWIFT / BIC | Global | Bank Identifier Code. Identifies the specific bank branch for international wire transfers. |
| Sort Code | UK | Six-digit code identifying the bank/branch (xx-xx-xx) + Account Number. |
| ACH Routing | USA | 9-digit Routing Number + Account Number for domestic transfers. |
| BSB | Australia | Bank State Branch code (6 digits) + Account Number. |
Payment references
You must explicitly tell the client what to write in the "Description" or "Reference" field of their bank transfer. Usually, this is the Invoice Number. Without this, reconciling payments becomes a nightmare.
Common pitfalls
- Hiding these details at the bottom in small print. They should be prominent.
- Providing only one payment method. This limits the client's options.
- Using an account that cannot accept the invoice currency. This increases exchange fees.
Common mistakes when filling the field
- Typos in the sort code or account number. This causes payments to bounce.
- Forgetting to update details after changing banks. Old accounts may be closed.
- Not specifying who pays the bank transfer fees. This creates short payments.
Why is it there
It facilitates the actual transfer of money. It closes the loop on the transaction. It reduces administrative back-and-forth asking "how do I pay you?".