What Is an ABA Routing Number?
Understanding ABA Routing Numbers
An ABA routing number, also referred to as a routing transit number (RTN), is a unique nine-digit code used to identify U.S. financial institutions such as banks and credit unions. This number ensures that electronic transactions like direct deposits, bill payments, check processing, and wire transfers are routed to the correct bank.
The Role and History of ABA Routing Numbers
Originally introduced by the American Bankers Association (ABA) in 1910, this numbering system was created to streamline the process of identifying banks during the early days of check-based commerce. Over time, the system evolved to support a broader range of digital financial transactions.
Today, the Federal Reserve Bank and other financial networks still rely on these identifiers to move funds securely between institutions. The ABA remains responsible for assigning these numbers, but financial institutions must apply through LexisNexis Risk Solutions, the official registrar for routing numbers.
Where to Find an ABA Routing Number
The routing number is typically printed on the bottom left corner of paper checks, though it can also appear on banking documents or digital platforms. It is a critical part of processing:
- ACH transfers (Automated Clearing House)
- Direct deposit setups
- Online bill payments
- Wire transfers
Without the correct routing number, payments may be delayed or misdirected.
Example Sentence Using ABA Routing Number
“I wasn’t able to complete my payroll setup through Beyond because I didn’t have my bank’s ABA routing number on hand.”
Related Financial Terms
- Gross wages
- Wage assignment
- Net pay
- Direct deposit
Explore More With Beyond
Check out additional resources and helpful articles from Beyond, including:
- How SBA Loans Work and How to Apply
- State-by-State Rules for Direct Deposit
- What to Know About Final Paycheck Laws and Severance
- ACH vs. Wire Transfer: Which Option Fits Your Business?