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 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 a routing number and a transit number? ›
Bank transit number is just another name for a routing number. Your bank transit number is the nine digit code that your bank or a financial institution is using for identification when clearing paper checks, or electronic transfers in the United States. Read more about what is routing number.
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? ›
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 does transit mean on a 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.
Do you include transit number in 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 difference between branch number and transit number? ›
A transit number—which can also be called a branch number—is a five-digit number that when combined with a bank institution number and your account number, provides the exact address of your bank account. You need these numbers whenever you set up a new payment process.
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 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 symbol for transit number? ›
Routing symbol
The symbol that delimits a routing transit number is the MICR E-13B transit character ⑆ This character, with Unicode value U+2446, appears at right.
What's the difference between an ABA number and a routing number? ›
An ABA number (also known as routing number or routing transfer number) is a sequence of nine numeric characters used by banks to identify specific financial institutions within the United States.
What is an example of a transit code? ›
For example, the transit number 12345-678 means that the bank account belongs to branch 12345 of institution 678. Transit numbers are used for similar purposes as routing numbers, such as: Setting up wire transfers or direct deposits.
Is routing transit number wire or electronic? ›
Both electronic payment options use routing numbers. For inbound or outbound domestic wire transfers and ACH transactions, you'll need the nine-digit routing number that identifies a bank or other financial institution in the U.S. For international wire transfers, you'll also need a SWIFT code.
Is an ABA number the same as a routing number? ›
An ABA number (also known as routing number or routing transfer number) is a sequence of nine numeric characters used by banks to identify specific financial institutions within the United States.
Is an ACH number the same as a routing number? ›
Is my routing number the same as an automatic clearing house (ACH) routing number? Yes. Your bank routing number is the nine-digit number associated with your checking account. The term ACH just refers to the method in which the money is moved.
What is the recipient's ABA routing number? ›
When making a money transfer to the USA, you'll need to ask for your recipient's ABA number. It identifies your recipient's bank. ABA numbers are assigned to each financial institution by the US Fed Reserve. They are used to move money between one bank to the other.
