Local Account Format

A local account format is the set of details a country uses to identify a bank account for domestic payments. Each market has its own structure: the United Kingdom uses a six-digit sort code with an eight-digit account number, the United States uses a nine-digit routing transit number with an account number, India uses an IFSC code, Canada a transit and institution number, and Australia a BSB. Domestic clearing systems route payments using these details. Many countries, especially in Europe, have also adopted the International Bank Account Number (IBAN), which wraps the local details in a standard structure with a country code and check digits. Payment providers that pay out in many countries must validate each local format correctly, because a payment with a malformed or mismatched account identifier is likely to be rejected or returned.