What Is an ABA Transit Number?
ABA transit numbers, also known as ABA routing or routing transfer numbers, are used to identify specific U.S. financial institutions and appear on standard checks. Basically, it is a nine-digit numeric address for each bank.
Key Takeaways
- An ABA transit number is a set of numerals that identify a specific U.S. financial institution.
- Without ABA transit routing numbers, it would not be possible to deposit a check using a mobile phone.
- Each financial institution recognized by the Federal Reserve has its own ABA transit routing number.
- ABA transit numbers allow employers to deposit checks automatically and for those checks to clear faster than a manual check.
- The numbers are also used inFedwiretransfers, and each digit making up the ABA routing number plays a role in the process.
Understanding ABA Transit Numbers
Sometimes referred to as a check routing number, ABA transit numbers were developed by the American Bankers Association in 1910 to indicate check processing endpoints. Since then, the numbers' use has expanded to include participants in check clearing between banking institutions, automated clearinghouses, and online banking activities.
The numbers are also used inFedwiretransfers, and each digit making up the ABA routing number plays a role in the process. In the past, the first four digits represented the bank’s physical location issued by the Federal Reserve Routing System. In 2019, due to the frequency of mergers and acquisitions of banks, these numbers may not represent a physical location.
The next two digits represent the Federal Reserve bank that is being used to route the electronic transaction. The seventh digit in the number identifies the assigned Federal Reserve check processing center for the bank, and the eighth represents the Federal Reserve district the bank resides in.
The last digit represents a complex mathematical equation that uses the first eight digits. The checksum is a safety measure. If the first eight digits do not equal the final digit, the transfer is marked as questionable and rerouted for manual processing, a far lengthier process.
If you are unclear about your bank's ABA transit number and don't have a check handy, simply call the bank. They can give you the institution's ABA number over the phone.
The ABA routing number appears in two forms on most checks. The first is a machine-readable nine-digit number on the bottom left of the paper check. It is followed by the checking account number. The second location is known as the routing symbol and is located at the top of the check, usually just below the individual check number. The first form, known as the magnetic ink character recognition (MICR) form, is the one used to process checks.
The second is a holdover from when checks were manually processed and contained most of the same information in a different format. The second form is still used as a backup in case the machine-readable format is illegible.The number in MICR form, whether magnetic or not, allows computers to "read" or recognize the numbers.
To qualify for an ABA transit number, a financial institution must be eligible to hold an account at aFederal Reservebank.
Example of How to Use an ABA Transit Number
ABA transit numbers are useful for receiving automatic payments, like a paycheck. In that case, you give your ABA transit number along with your checking account number to your employer. The banks will take care of everything else.
In the past, physical paper checks were mailed to the recipient or the recipient's bank, which took considerably more time than sending a check electronically. In 2004, the Check 21 Act, allowed checks to be cleared electronically and almost automatically versus having to wait for a check to arrive, and then clear in an account. The ABA transit number plays a vital role in the expediency of check processing.
What Is an ABA Number?
An ABA number is a set of nine digits that identify specific U.S. financial institutions. They are usually found on the bottom left-hand corner of a check or the information portal of an online account. The number is used for facilitating financial transactions, such as wire transfers and direct deposits.
Do All Banks Have an ABA Number?
Yes, all banks have an ABA number that is used to identify the specific bank and facilitate financial transactions. The ABA number is found on a check issued by the bank as well as through a bank customer's online portal.
Is There a Difference Between an ABA and a Routing Number?
No, an ABA number is also known as a routing number and consists of nine numeric digits to identify specific U.S. financial institutions in order to facilitate financial transactions.
FAQs
What Is an ABA Transit Number? ABA transit numbers, also known as ABA routing or routing transfer numbers, are used to identify specific U.S. financial institutions and appear on standard checks. Basically, it is a nine-digit numeric address for each bank.
What is the meaning of transit ABA number? ›
An ABA number, also known as Routing Transit Number (RTN) or ABA Routing Number, is a nine-digit code assigned by the American Bankers Association to identify each financial institution in the country. ABA Number Extended Definition. The American Bankers Association introduced ABA Routing Numbers in 1910.
What is the ABA ACH transit number? ›
ACH routing numbers are different from ABA routing numbers since they're used specifically for electronic transactions. The first two digits of ACH routing numbers typically range from 61 to 72, whereas the first two digits of ABA routing numbers range between 00 and 12.
What is the transit number on my checking account? ›
You can find your bank transit number at the bottom left corner of a check that you receive from your checking accounts, as well as through your online banking account or on your bank statement. In the United States, bank transit numbers are a nine-digit number sequence.
How do you read a transit number check? ›
Your bank transit number and institution number can be found at the bottom of a cheque. The transit number (five digits) identifies which branch you opened your account at. The three-digit institution number identifies your bank.
What is the difference between transit number and routing number? ›
A routing number combines your bank transit number and institution number to form the routing number for your account. A bank transit number is a unique number that represents the bank branch where you opened your account. It is typically eight digits long. It is usually five digits long.
What is the difference between an ABA number and routing number? ›
An ABA – also called as a routing number – is used to identify banks in the United States. This nine-number code helps banks in the process of transferring money domestically between accounts for different kinds of transactions, for example, direct deposit or bank transfers.
How do I find my bank transit ABA number? ›
Where is the ABA Routing Number on my checks? You can find the ABA Routing Number at the bottom of your checks. The ABA Routing Number is the left-most number, followed by your account number, and then by the number of the check.
What is the format of the ABA number? ›
Today's bank routing numbers are formatted as a nine-digit code, with the first four digits representing the Federal Reserve routing symbol, followed by four digits that identify the specific financial institution, and the last digit, known as the check digit, which is used to verify the authenticity of the routing ...
What happens if you use a wire routing number instead of an ACH? ›
know that banks have two separate routing numbers. One for wire transfers and one for ACH transfers. If you used your banks wire transfer number it will still go to your bank but the banks computer systems will not know where to put the money and there is a good chance they will reject it.
How to find a routing number without a check
- Go online: Your bank may post its routing number online via its website or mobile banking app. ...
- Bank statement: You might find the routing number on your monthly paper or electronic bank statement, although not all banks include it.
If someone gains access to your bank account and routing numbers, they can use the information to fraudulently withdraw or transfer money from your account. They can also create fake checks, claim your tax return or commit other forms of financial fraud.
Which routing number do I use for wire transfer? ›
You will need both routing numbers and bank account numbers for domestic wire transfers within the United States. The ABA routing transit number (ABA RTN) is a nine-digit code printed on the bottom of checks which identifies the financial institution from which the funds are sent.
What is a transit ABA check digit? ›
An ABA routing number has nine digits. This nine-digit number has three components. The first four digits are the Federal Reserve Routing Symbol, the second four digits are the ABA institution identifier and the final digit is what's called a check digit that is used to prevent transaction errors.
What is the format of transit number? ›
Ways to find your transit number and account number
Find the number associated with your deposit or Personal Line of Credit account which appears in the format xxxxx-yy-yyyyy: the first 5-digit number [xxxxx] is the transit number and the last 7-digit number [yy-yyyyy] is the bank account number.
What is the check digit of the transit number? ›
The ninth (last) number of the transit routing number is a check digit.
What does transit mean for direct deposit? ›
Transit refers to payments that take place between parties of different banks. The payment is then in transit from the payor's bank to the payee's. Because the recipient's bank cannot see the financial accounts of the sender's bank, they will hold the deposit until it clears and is reconciled.
What is a transit ABA number chase? ›
A routing number (also known as ABA which stands for American Bankers Association or RTN which stands for Routing Transit Number) is a nine-digit number that is used by banks or other financial institutions to identify where your account was opened in order to send or receive money.
What is the payment method of ABA? ›
At ABA English, the main payment methods are credit card, debit card, or Paypal. You can find other payment methods depending on your country.
