Key takeaways
- Bankgirot is a Swedish clearing and settlement service, launched in 1959, and one of the two main Swedish payment schemes with PlusGirot.
- Payments require a Bankgiro number, a 7–8 digit routing number that directs funds to the correct account regardless of bank.
- Only business accounts can have a Bankgiro number, but both consumers and businesses can pay to one.
- Bankgiro payments settle the same day on weekdays at about 1.85 kr. per payment.
Introduction to Bankgirot
Bankgirot is a clearing and settlement service in Sweden which operates the eponymous and widely used payment scheme Bankgirot. Together with PlusGirot it is one of the two main payment schemes in Sweden. Bankgirot was first launched in 1959 and facilitates giro payments that require both the sender and recipient to have a Bankgiro number.
To learn more about Bankgirot and other Swedish payment schemes, read our guide to bank payments in Sweden.
- Year introduced: 1959
- Operated by: Bankgirot
- Availability: Monday to Friday
- Settlement: Same day
- Clearing: Bankgirot
- Fee per payment: 1.85 kr. (approx.)
How Bankgirot works
A Bankgiro number is required to send or receive payments through the Bankgiro system, and is effectively a routing number that directs payments to the correct account regardless of which bank it’s held at. Many Bankgiro numbers can be connected to the same account but it is not possible to have multiple accounts connected to one Bankgiro number.
Only business accounts can have a Bankgiro number but both consumers and businesses can make payments to Bankgiro numbers. A Bankgiro number is always 7–8 digits long and is formatted as, for example, 123-4567 or 1234-5678.
Bankgiro payments can be used with both structured and unstructured payment references. Structured references have a limit of 25 digits while unstructured references are more flexible and can consist of up to 140 characters of free text sent to the payee. A structured, 25-digit reference is known as an OCR-number in Sweden and is used for the automatic reconciliation of invoice payments. Companies can configure additional checks with their bank to ensure incoming payments use the correct OCR-number.
Bankgirot’s settlement cut-off times vary depending on the bank. Transfers initiated before the cut-off time are credited to the payee’s account on the same day and one business day later if initiated after the cut-off time.
Bankgiro numbers are also used for Bankgirot’s supplier payment service, known as ‘Leverantörsbetalningar’, which is a pull-based payment system used to pay invoices, salaries, and taxes. Bankgirot also provides the electronic invoicing solution E-faktura.
Benefits and drawbacks of Bankgirot
Bankgirot is a low-cost way to make credit transfers to any bank account in Sweden and can be used by businesses and consumers alike. It comes with the added security of using routing numbers, allowing bank account information to be kept private. One drawback of Bankgirot as a domestic payment scheme is that it can only be used for payments in Swedish kronor.
