Global payments
Posted on Jul 18, 2025
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In a world where international payments are becoming more frequent and necessary, especially for freelancers, digital service providers, and exporters, it is crucial to understand the banking systems that support these transactions. One term that often comes up when dealing with UK-based clients or banks is the sort code.
If you are an Indian professional working with clients in the UK, understanding sort codes can help you avoid confusion and payment delays. In this guide, we will explore what a sort code is and why it matters. Also, we will see how it is different from other banking codes like SWIFT or IBAN, and how Infinity simplifies payments from the UK by eliminating sort code confusion.
What is a Sort Code?
A sort code is a six-digit numeric code used by banks in the United Kingdom and Ireland to identify the bank and the specific branch where an account is held. It is equivalent to the IFSC code used in India for routing domestic transactions.
The sort code is essential for:
Making domestic transfers within the UK
Setting up standing orders or direct debits.
Receiving payments from UK clients.
Example of a sort code:
12-34-56
This code helps the UK’s faster payments, BACS, and CHAPS systems correctly route money from one account to another.
How is a Sort Code Structured?
The sort code format is simple but effective. It contains six digits, usually written with hyphens as XX-XX-XX, and is broken down as follows:
Section | Digits | Description |
|---|---|---|
Bank Identifier | 2 | Identifies the financial institution |
Branch Code | 2 | Indicates the specific branch |
Location Code | 2 | Refers to the geographical or internal location |
Did you know? Each bank in the UK has a predefined range of sort codes allocated by the Payments Council.
For example:
Barclays Bank might have sort codes starting with 20.
HSBC might have sort codes starting with 40.
Where is the Sort Code Used?
Sort codes are used only in the UK and Ireland for domestic transactions. Here is a breakdown of where and how they are used:
Use Cases for Sort Codes:
Setting up salary accounts
Making bank transfers via BACS for Faster Payments
Setting up recurring utility bill payments
Receiving payments from UK-based businesses or clients
It is mandatory for UK residents and businesses to provide their sort code when accepting or initiating domestic payments.
For non-UK residents or businesses receiving money from the UK, having access to a UK sort code can significantly speed up the payment process.
Sort Code vs SWIFT Code vs IBAN: What is the difference?
People often sort codes with SWIFT and IBAN codes. Here is how they differ:
Feature | Sort Code | SWIFT Code | IBAN |
|---|---|---|---|
Used in | UK, Ireland (domestic) | Globally (international) | Europe & some global countries |
Format | 6 digits (e.g. 12-34-56) | 8–11 alphanumeric (e.g. HBUKGB4BXXX) | Varies (up to 34 alphanumeric) |
Identifies | Bank + Branch | Bank + Country | Country + Bank + Account |
Primary purpose | Routing domestic UK payments | International wire transfers | Identifying international accounts |
Required for | UK bank transfers | Global transfers (via SWIFT) | Receiving funds internationally |
Key takeaway:
If your UK client is paying you via domestic transfer, they will need your sort code and account number.
If they are sending money internationally, they might need your SWIFT or IBAN, unless you offer them a local UK payment option via a virtual account.
Why does the Sort Code matter in International Payments?
While sort codes are primarily used within the UK, they also impact international transactions involving UK clients or banks.
Here is how:
Local Convenience for UK clients- Many UK businesses prefer to pay vendors and freelancers using domestic payment methods. If you do not provide a UK sort code, they must make an international transfer, which is often slower, costlier, and more cumbersome.
Faster settlement- Domestic UK payments via sort code are often processed within seconds( Faster Payments) or 1 business day (BACS), much faster than SWIFT-based international transfers.
Lower Costs- Domestic payments within the UK are often free or low-cost. On the other hand, international wire transfers usually involve sending fees, receiving bank charges, and forex markups.
Reduced Errors- A sort code + UK account ensures fewer misrouted payments compared to SWIFT-based wires, which involve intermediary banks.
How to find your sort code?
If you have a UK bank account or a virtual GBP account, finding your sort code is easy:
Source | Where to find it |
|---|---|
Bank statement | Typically listed beside your account number |
Mobile banking app | Under account information |
Cheque book | Printed on the bottom left corner |
Debit card | Often listed above or below your name |
Customer support | Provided upon request |
Tip: If you use a modern fintech platform like Infinity, your sort code is visible within the app or dashboard, just like a traditional UK account.
Do Indian exporters or freelancers need a sort code?
This is one of the most frequently asked questions by Indian professionals working with UK clients.
The answer: You do not need a sort code, but having one helps.
While Indian banks do not issue sort codes, you can still receive international payments from the UK using SWIFT. However, UK clients may prefer paying via domestic methods using a sort code.
Here is why Indian users might want access to a UK sort code:
Simplifies the process for UK clients (they just send a local payment)
Speeds up settlements
Reduce the cost for both the sender and receiver
Improve trust- clients often feel more comfortable paying to a UK-based account
So, if you want to appear more “local” and trustworthy to your UK clients, having access to a UK sort code( via a virtual account) is a strategic advantage.
How Infinity simplifies GBP payments- No Sort Code Headaches
Setting up a UK bank account as a non-resident is next to impossible. But thanks to platforms like Infinity, Indian freelancers, agencies, and exporters can now receive GBP payments from UK clients, just like a local business.
With Infinity, you get:
A UK virtual account- With Infinity, you get your own sort code and account number, making it as easy as a local transfer.
No SWIFT- No need to ask clients for expensive SWIFT transfers. So you get to avoid the SWIFT fees.
Faster payments- With Infinity, you get paid faster via the UK’s local systems (like BACS or Faster Payments).
Full transparency- Infinity charges a flat fee of 0.5% (inclusive of all). Infinity charges 0% FX markup, and there are no other fees.
RBI-compliant- Infinity provides instant and free-of-cost FIRA and is regulated by the RBI and FEMA regulations.
Example Scenario:
Without Infinity | With Infinity |
|---|---|
The client sends money via SWIFT | Client pays like a UK domestic payment |
Takes 2–5 days, costly | Arrives within 24 hours or less |
Losses due to poor FX conversion | Live FX rates, no hidden markup |
Requires SWIFT code + INR account | GBP virtual account |
Final thoughts
A sort code might seem like a minor detail in the banking world, but for Indian businesses and freelancers dealing with UK clients, it is a powerful piece of the payment puzzle. Understanding what a sort code is- and more importantly, having access to one- can streamline your payments, improve your cash flow, and enhance client trust.
Instead of waiting days for an expensive SWIFT transfer, you can offer UK clients a simple, local way to pay, all thanks to Infinity.
FAQs
Can I get a sort code in India?
No, Indian banks do not issue sort codes. You can only get one via a UK bank or a virtual GBP account through platforms like Infinity.
Is the sort code the same as the IFSC code?
Not exactly. Both are used to route domestic payments, but the sort code is used in the UK, while the IFSC is used in India.
Can I receive GBP payments without a sort code?
Yes, via SWIFT transfers. But they are slower and more expensive. You can receive GBP payments via Infinity, and you can calculate the exact amount by using Infinity’s currency converter.
