For two main reasons. Firstly, they allow your bank to make cross-border payments more easily. These codes enhance the accuracy of a bank account to be checked, facilitate the automatic treatment of foreign transfers and make the system more secure and finally less expensive for you.
The second reason is more practical. Without using the BIC and IBAN, you can’t make money transfers in the European countries. If you don’t have the BIC and IBAN of your creditors, you must contact them to get the information. The same problem will arise if you don’t transmit your IBAN and BIC to your debtors.
And if you state the recipient’s IBAN but not the BIC when making a cross-border transfer, you will pay more. The BIC is one of the requirements that you have to meet in your payment orders to other European countries if you want to benefit from the same rates as for national payment orders. However, you don’t have to state the recipient’s BIC when making a national transfer.
If you have any doubts or questions, please contact your banker. He will help you to avoid losing money!