Is ABA number the same as routing number?

International money transfers

When dealing with financial transactions, especially in the U.S., the terms ABA number and routing number often come up. But are they the same? This is a common question, especially for anyone who has to manage payments, direct deposits, or wire transfers.

Fortunately, we’re here to clear up any confusion. While these terms are often used interchangeably, they aren't exactly the same. An ABA number1 is used mainly for identifying banks when processing paper checks, whereas a routing number plays a bigger role, helping with electronic transactions like ACH payments2 and wire transfers. Understanding the difference between the two is important in order to ensure your financial transactions are processed correctly.

In this article, we’ll take a deeper look at the differences between ABA and routing numbers, what they mean, and why they matter.

What is an ABA number?

An ABA number, short for American Bankers Association number, is a unique identifier that is assigned to banks and financial institutions in the United States. It was first introduced in 1910 by the American Bankers Association in an attempt to streamline the process for processing paper checks. Each different bank is assigned a specific ABA number to help ensure the smooth and accurate routing of transactions between individual financial institutions.

The ABA number meaning is tied to its role in identifying the bank where an account is held. While it was originally designed for paper-based transactions, like processing checks, it’s still often used today, especially for domestic transactions like direct deposits and bill payments.

So, what does ABA mean in banking? It’s an important part of the U.S. banking system, used to ensure that payments reach the correct financial institution. Typically, you'll find the ABA number listed at the bottom of paper checks, ensuring that the right bank processes each transaction properly.

What is a routing number?

A routing number3 is a nine-digit code that is used to identify financial institutions in the United States. Its biggest purpose is to ensure that transactions are correctly routed between banks, making it an important factor for accurate and efficient transfers. The routing number meaning comes from its role in handling a variety of transactions, including processing checks, electronic payments, and wire transfers.

Originally, the ABA routing number was introduced by the American Bankers Association to help with routing paper checks between banks. However, as the banking system has evolved over time, so has the use of routing numbers. Today, they are used not only for checks but also for ACH payments (like direct deposits and recurring bill payments) and wire transfers. Whether you're sending or receiving money domestically, the routing number helps to make sure that the funds move smoothly through the banking system and reach the correct financial institution that they are intended to.

The ABA routing number meaning is very important for businesses and individuals who frequently make electronic transfers or payments, because it ensures that the funds are securely and accurately directed to the appropriate bank. It’s a primary element of everyday financial transactions in the U.S., making banking a lot more reliable and convenient.

ABA number vs. routing number: are they the same?

One of the most common questions about banking in the U.S. is whether an ABA number and a routing number are the same thing. While these terms are often used interchangeably, they actually have slightly different purposes.

An ABA number was originally created by the American Bankers Association to identify banks and financial institutions, specifically for processing paper checks. So, when you think of an ABA number, it’s traditionally linked to transactions involving physical checks. This number ensures that each check is routed to the correct bank, allowing for smooth and accurate processing.

On the other hand, a routing number serves a much bigger purpose. It identifies financial institutions for a variety of transactions beyond paper checks, including electronic payments like ACH (Automated Clearing House) transfers and wire transfers. Routing numbers are used to process digital payments, direct deposits, and even recurring bill payments.

So, when comparing the two—ABA vs. routing number—it’s important to know that while the terms refer to the same nine-digit code, their uses differ slightly based on the type of transaction. If you're writing a paper check, you’re using an ABA number, but if you're making an electronic payment or transferring money online, that same nine-digit code is referred to as the routing number.

To clarify, is ABA and routing number the same? Yes and no. They can be the same number, but the terminology varies based on how it's being used—whether its for paper transactions or electronic ones.

The different types of ABA/routing numbers

There are many different types of ABA/routing numbers, each serving a specific purpose depending on the type of transaction you’re performing. While they all follow the same nine-digit format, their usage varies based on whether you're making an electronic transfer, processing a check, or sending a wire transfer.

ACH routing number

The ACH routing number is used for Automated Clearing House (ACH) payments, which include electronic transactions like direct deposits, bill payments, and payroll transfers. ACH transactions are a common way to move money electronically between banks for everyday payments. This number helps to ensure that the funds are routed to the correct institution for processing.

Wire transfer routing number

If you're sending or receiving money through a wire transfer, you'll need the specific wire transfer routing number for that bank. This number is often different from the general routing number used for ACH payments or checks, because it is dedicated to processing wire transfers, which tend to be of a higher-value and are more urgent transactions. For anyone making international transfers, services like BOSS Revolution provide convenient international money transfer options. 

Check routing number

The check routing number is the original use of the ABA number, found on the bottom of paper checks. It is used to identify the bank that issued the check, ensuring that the funds are transferred correctly from one account to another when the check is cashed or deposited.

EFT routing number

An EFT routing number is used for Electronic Fund Transfers, covering a broad range of digital transactions beyond ACH. This can include things like online payments, point-of-sale transactions, and other automated withdrawals or deposits that don’t fall under the ACH system.

Each type of routing number has a specific role, so it’s important to know which one to use for the transaction you're processing, whether it’s a direct deposit, wire transfer, or check payment.

How to find your bank’s ABA or routing number

Finding your bank’s ABA or routing number is easy and can be done through a few simple methods. Here’s some simple tips to help you find it:

Paper checks

The most straightforward way to find your routing number is to look at a paper check. Typically, it’s the first nine digits located at the bottom-left corner of the check, before your account number. This routing number helps to ensure the check is routed to the correct bank when processed.

Online banking/mobile apps

You can also find your bank’s routing number through your online banking platform or mobile app. Simply log in, navigate to your account details or settings, and look for a section labeled "Account Information" or "Routing Number." Many banks list the ABA number here so you can easily reference it.

Contacting customer service

If you’re unsure or need confirmation, another reliable method is to contact your bank’s customer service. A quick call to your bank or a visit to a local branch can help you verify your ABA or routing number, especially if you’re handling important transactions like wire transfers.

Common questions about ABA numbers and routing numbers

What’s the difference between ABA and SWIFT?

An ABA number is used for domestic transactions within the United States, helping to route payments to the correct U.S. bank. On the other hand, a SWIFT code is used for international transactions, identifying banks globally for sending or receiving funds across borders. While both serve similar purposes, they operate in different systems—ABA for U.S. transactions and SWIFT for global transfers.

Is ABA used for international transactions?

No, ABA numbers are usually used for domestic transactions in the U.S. If you’re transferring funds internationally, you’ll likely need a SWIFT code instead. SWIFT codes help ensure that money is routed properly between banks across different countries, while ABA numbers work within the U.S. banking system for local transfers, like ACH payments and check processing.

How do I know which number to use for a wire transfer?

For a wire transfer, you will need your bank’s wire transfer routing number, which is sometimes different from the regular ABA routing number. You can find this by checking your bank’s website, contacting customer service, or looking at your online banking information under wire transfer instructions. It’s very important to use the correct routing number to avoid delays or errors.

Is IBAN the same as ABA?

No, an IBAN (International Bank Account Number) is used for international transfers to identify individual bank accounts across borders, mainly in Europe. The ABA number is used only within the U.S. to identify banks during domestic transactions. While both help to facilitate payments, IBANs are for international transactions, where ABA numbers are for U.S. domestic banking only.

ABA numbers and their importance in the banking system

ABA numbers are very important in the U.S. banking system because they ensure that payments are processed smoothly and reach the correct financial institution. These nine-digit numbers help banks identify each other through various different transactions, such as check processing, wire transfers, and ACH payments. Understanding how to use an ABA number properly is important for anyone managing financial transactions. Using the wrong routing number can result in delays or failed payments, especially for important transactions like payroll deposits or bill payments.ABA numbers are an important part of keeping the U.S. banking system running smoothly.

Wrapping up

ABA numbers and routing numbers may seem similar, but they serve slightly different purposes. ABA numbers are traditionally used for identifying banks for check processing, while routing numbers cover a broader range of transactions, including wire transfers and ACH payments. Using the right number for each different type of transaction is important in order to ensure that all payments are processed accurately. For international transfers, however, an ABA number just isn’t enough. We recommend using BOSS Revolution’s money transfer service for international transfers that are a whole lot safer and more convenient.

Sources: all third party information obtained from applicable website as of  October 28, 2024

  1. https://wise.com/us/blog/what-is-aba-number

  2. https://www.forbes.com/advisor/banking/ach-payments/

  3. https://www.forbes.com/advisor/banking/bank-routing-number-and-where-to-find-it/

This article is provided for general information purposes only and is not intended to address every aspect of the matters discussed herein. The information in this article is not intended as specific personal advice. The information in this article does not constitute legal, tax, regulatory or other professional advice from IDT Payment Services, Inc. and its affiliates (collectively, “IDT”), and should not be taken or used as such by any individual. IDT makes no representation, warranty or guaranty, whether express or implied, that the content in this article is current, accurate, or complete. You should obtain professional or other substantive advice before taking, or refraining from, any action on the basis of the information in this article.

Share