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
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 your routing and transit number? ›
A routing or “transit” number refers to the specific bank the account is with. This is the nine-digit number assigned to your bank by the American Bankers Association and used to identify your bank during financial transactions.
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.
Where is the transit ABA number on a check? ›
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 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.
What is transit ABA number chase? ›
What is the difference between routing transit number and bank identification code? ›
Each nine-digit routing number consists of two different codes and a check digit. The first four digits are the routing code the Federal Reserve banks use to direct each transfer correctly through their system, and the second is the bank identifier used to notate the financial institution associated with the payment.
What is transit routing? ›
Transit routing is simply routing traffic to either a virtual cloud network (VCN) or an on-premises network through a central hub VCN. Here's a basic example of why you might use transit routing: you have a large organization with different departments, each with their own VCN.
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 is the format of the ABA 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.
The recipient can easily find this number on their bank statements or by logging into their online banking account where it's often displayed. They can also look in their checkbook as ABA routing numbers are often on the bottom left corner of checks.
What is the meaning of ABA? ›
Applied Behavior Analysis involves many techniques for understanding and changing behavior. ABA is a flexible treatment: Can be adapted to meet the needs of each unique person. Provided in many different locations – at home, at school, and in the community. Teaches skills that are useful in everyday life.
What is a transit ABA number in banking? ›
What is an ABA transit number? An ABA transit number, also known as a routing number, is a nine-digit number used to identify U.S. banks. This unique combination of digits makes it possible for specific financial institutions to easily transfer money to and from accounts.
What is a transit number what is its purpose on a check? ›
A routing transit number is a nine-digit number used to identify a bank or financial institution when clearing funds or processing checks. The American Bankers Association (ABA) established routing transit numbers in 1910.
Is the routing transit number the direct deposit 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.
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 the payment method of ABA? ›
ABA Payment Gateway, also known as Advanced Bank of Asia, is a payment processing solution that enables merchants to accept online payments from customers via multiple payment methods such as credit card, debit card, and mobile banking.
What is the transit ABA number for Wells Fargo? ›
To receive a wire, provide the following information to the individual or business that is sending the wire: For domestic wire transfers: Wire Routing Transit Number (ABA / RTN) 121000248. For international wire transfers: SWIFT / BIC code WFBIUS6S.
