ABA transit number,
Definition of ABA transit number:
Check number, part of the code developed and used by the American Bankers Association. Transit numbers are used to assist banks with cash checks and to identify financial institutions and the Federal Reserve Bank that uses them. It is near the upper right corner and appears as a component with a letter and a number. The counter shows the area where the bank is located and the branch number. The letter contains the first four digits of the routing number in the lower left corner of the check.
An ABA transit number, also called an ABA routing or redirect number, is used to identify a US financial institution. Appears in specific and standard checks. This is basically a nine-digit address for each bank. The ABA Transit Number was developed by the American Bankers Association in 1910 to mark the end of check processing. Since then, there has been an increase in the use of numbers among bank institutions, automated clearing houses and online banking to involve participants in check clearing. .
Numbers are also used in feed wire transmissions, and each digit that makes up an ABA routing number plays a role. In the past, the first four digits represented the bank's physical location, as reported by the Federal Reserve's Routing System. In 2019, these numbers may not represent a physical location due to the multiplicity of mergers and acquisitions of banks.
How to use ABA transit number in a sentence?
- Each Federal Reserve-approved financial institution has its own ABA transit routing number.
- Without an ABA transit routing number, it is not possible to submit a check by cell phone.
- With the help of ABA Transit Number, employers can deposit checks automatically and withdraw them faster than manual checks.
Meaning of ABA transit number & ABA transit number Definition