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 number? ›
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. A routing number includes the bank transit number. A transit number does not include the routing number.
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? ›
A bank transit number is commonly referred to as a routing number, or ABA RTN (American Banking Association routing transit number). It is a nine-digit code that identifies a specific financial institution and is used when transferring money or identifying specific bank accounts.
What is the meaning of ABA Routing Number? ›
ABA Routing Number™
It identifies the specific financial institution responsible for the payment of a negotiable instrument: Originally designed to identify only check processing endpoints, it has evolved to designate participants in automated clearinghouses, electronic funds transfer and online banking.
What is an example of a routing transit number? ›
01 through 12 are the "normal" routing numbers, and correspond to the 12 Federal Reserve Banks. For example, 0260-0959-3 is the routing number for Bank of America incoming wires in New York, with the initial "02" indicating the Federal Reserve Bank of New York.
What is the format of a routing number? ›
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 does transit ABA number mean? ›
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.
How do I find my bank transit ABA number? ›
You can quickly and easily find your bank's routing number by looking for the nine-digit number in the bottom-left corner of your physical checks. If you don't have any checks, you could also check your bank's online portal or mobile app, as well as any account statements you may have access to.
What is the difference between ABA and ACH routing numbers? ›
ABA routing numbers are used for paper or check transfers. ACH routing numbers are used for electronic transfers. Transactions using ACH routing numbers “clear” faster (same or next day) than funds transferred on paper checks using ABA numbers.
While routing numbers are used to identify individual banks' branches, ABA transit numbers are used to identify banks themselves. ABA transit numbers are nine-digit codes assigned by the American Bankers Association to financial institutions in the United States.
What is a routing transit number check digit? ›
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 someone has your bank account number and routing number? ›
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.
Why is the ABA routing number important? ›
It plays a crucial role in various financial transactions, such as electronic funds transfers, direct deposits, and bill payments. ABA routing numbers help ensure that funds are accurately and securely routed to the intended recipient's bank or credit union.
Is bank code same as ABA 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.
What happens if I use an ACH routing number for wire transfer? ›
Like a home address, an ACH routing number directs electronically transferred funds to the correct bank and branch. The number is necessary for setting up direct deposits, automatic payments, and wire transfers.
Is transit number and routing number the same thing? ›
Bank transit numbers, also known as routing numbers, provide unique identifiers for banks and other financial institutions and ensure secure funds transfers across a variety of channels, including physical checks, wire transfers, and online banking transactions.
What is a transit number for shipping? ›
An inland transit number (or IT#) is a number issued by U.S. Customs to track any imported goods moving inland from a discharge port. The IT# allows customs to track the shipment. It also helps the importer track the shipment with the CFS warehouse.
Is transit number your branch? ›
The branch/transit number is the 5-digit number that identifies your financial institution's branch. The account number will most commonly be a 7 to 12-digit number that uniquely identifies your bank account.
How many digits is a routing transit number? ›
A routing number is a unique, nine-digit number that functions as an address for your bank. It is used for electronic transactions such as funds transfers, direct deposits, digital checks, and bill payments.