Bankgirots

Bankgirot is the Swedish payment clearing system and the company that operates it. It provides domestic interbank clearing and settlement for payments between banks and, by extension, between businesses and individuals within Sweden. The system uses bankgiro numbers as identifiers on invoices to specify the recipient within the Bankgirot network.

When a payer initiates a payment, funds are transferred from the payer’s bank to Bankgirot’s clearing infrastructure, which nets and settles the transaction with the recipient’s bank. The recipient’s bank then credits the funds to the recipient’s account. Bankgirot processes payments in batches during business hours, with settlements typically occurring within the same business day or the next.

Bankgirot is widely used for business-to-business invoicing, supplier payments, payroll, and other domestic transactions. Invoices commonly include a bankgiro number to route payments to the correct recipient. The system operates alongside other payment channels, such as card payments and direct bank transfers, to support Swedish domestic payments.

Organization and regulation: Bankgirot AB operates the network and is owned by a consortium of Swedish banks. The system is supervised by Finansinspektionen, the Swedish Financial Supervisory Authority, and adheres to national standards for security, reliability, and anti-fraud measures. Bankgirot emphasizes strong authentication, encryption, and disaster recovery to ensure continuous operation of the clearing service.

History and scope: The Bankgirot clearing concept originated to streamline interbank payments in Sweden and has evolved into a mature electronic clearing system that handles a large share of domestic payments, especially invoices and payroll. It remains a core component of Sweden’s payments infrastructure.