What is Bank Routing Number?
In order to identify a financial institution in the United States, a nine-digit code is used, this code is termed as Bank routing number. This code is by the banks to exchange funds to and from one another directly. Typically, you can find the routing number on the bottom left corner of personal checks.
Where Bank routing number is used?
Basically, the bank routing numbers are used by the American Bankers Association (ABA) for making the circulation of paper checks on a large scale simple and easy. That’s why these numbers are also referred to as ABA routing numbers or American Clearing House (ACH) routing numbers, and hence it can be found on personal checks, bank websites or the ABA’s online database. You can find both the routing number as well as your personal account number on the bottom of the checks issued by your bank. Most banks offer at least one free checkbook for new customers.
Before we discuss these numbers in detail, you have to understand the proper meaning of a few terms. The first one is the routing number itself. As already discussed, the bank routing number has nine-digits which are printed on the bottom-left corner of your check. The magnetic ink character recognition (MICR) is the font that is used to print it. This is actually the electronic ink to allow banking institutions to easily process checks.
The term account number is the number provided by the bank as a unique identifier for your bank account. It is located at the bottom center of the personal check just beside the routing number. Now, comes the check number, this is used to record all payments, and it is present at the bottom right corner of your personal check.
When you are entering routing and account numbers, it’s quite vital that you double-check your entries. If there is even a single error then that can lead to failed transfers or send your money to the wrong account. Later, once you have submitted the details you find that there is some sort of error then immediately notify your bank so that it can reverse the transaction.
What is the process of finding a Bank Routing Number?
Few people believe that you can find your routing number only when you have your checkbook. But actually, you can find the routing number even when you don’t have your checkbook. When you don’t have a checkbook, you can find it by checking your bank’s website or simply calling your local branch. This number varies by bank and region that implies it will be different for a different place. As we have already discussed that one bank can have multiple routing numbers, so while you are checking it on the website make sure that the number you found corresponds to that branch of the bank where you opened your account.
How can you find a bank using a Bank Routing Number?
Now, when you have a routing number handy and you wish to look up its respective bank then you can search for it on the ABA’s website. In this website, you can very easily search for routing numbers using their website by simply entering the bank’s name and address of the location of the branch. Sometimes there is a possibility that you get the checks without the bank’s name on it. Just like the Federal Reserve system used to process the transactions just by bank routing number and account number. Thus, you must understand that you check your personal account number carefully as well as protect your social security number.
If you want to understand the difference between ABA and ACH routing numbers then you must know that ABA applies to paper checks while ACH applies to electronic transfers and withdrawals. Today, the majority of banks use the same bank routing number for both. Though you can find separate ABA and ACH routing numbers for regional lending institutions. Therefore, ACH transfers are considered as automated electronic transfers between financial institutions. Usually, these transactions are conducted through a third-party clearinghouse. Whereas when it is about the wire transfers then they are direct electronic transfers between financial institutions. These are processed much quicker than ACH transfers as there is no need for third-party clearance.