The banking sector has many types of numbers that can result in confusion for individuals who do not belong to it but make life easier for the ones associated with it. The two of them that get mentioned in this article are different from each other in an easy way. The first one that is called the ABA number is the one that is present in the transactions that occur through checks in the United States, whereas the RTN number is the one which is present in the transactions that are made through checks in the United States and other parts of the country more often.
ABA number is a banking term that is used to describe the number which is used by all the banks in the United States to find out about the institutions and deal with the financial matters. For several purposes this term comes up, that include the electronic automatic clearing house transactions and wires that move over longer distances. This number also deals with the transfer of money through electronic means and also for direct deposits. People can also make use of this number when they have to make direct payments of their consumer bills and have to show their tax payments. Some other purposes for whom this figure gets mentioned includes using of e-checks and fund addition in the accounts. Whenever any money transferred from someone’s account to the other, this number comes into the reckoning. The term for this figure is mostly used in American and has different names in other parts of the world. It does not have any alphabet in it and is nine digits long; this means there will only be numbers in it. Although it is confused with other terms and there are many other names used for this number that does not mean it will be same as them. There can be differences among them. Therefore, it is a good idea to consult your bank whenever such confusion among the type arises. This term stands for American Bankers Association number exists in the upper right corner of the payments that finalize through a check. This number is used to find out what is the name of the bank, where the exact location is and what is the area of check withdrawal.
Routing Number that is sometimes also known as Routing Transit Number and RTN is the number that uses numbers on a check. This figure has many different purposes were the main ones such as transfer of money by electronic means and also for direct deposits. To make direct payments of their consumer bills and have to show their tax payments. E-checks and fund addition in the accounts. This number is not used or is relevant to the person who has an account in the bank but is mostly used to complete the dealings between two banks. Every bank registered in the country is given a specific number and helps to tell where they locate themselves, what is the state of the bank, that branch included in it, and what is nature of check written. This term is one that is more often used around the world and is not unique to the United States. The first two numbers of this are the ones that are used to identify the exact location of the bank. Next four are the ones who tell about the bank that is using the number of another financial institution, and the last four digits are the ones that point to the federal reserve bank of the country. Although primary purpose is for payments that complete through check but for online payments, it also has critical benefits. If the money transfer is occurring between two banks or institutions, so they have to deal with the identification and processing the money that transfers. It makes it easier to find out all the details about a particular money trading agency and make the process fast.
- The term ABA number stands for the American Bankers Association number whereas the term RTN is the one used for Routing Number.
- ABA can be found at the upper right corner of the payments that are completed through a check. RTN number locates itself at the top right corner or the lower left corner of the payments that conduct through an online or direct check.
- ABA number is used for making direct payments of their consumer bills and have to show their tax payments for the user and making e-payments, e-checks, online shopping. The Routing Number is the one used for more traditional purposes such as making bank to bank payments.
- The ABA number is more typical in the United States, whereas the Routing Number is more common around the world.
- There are no alphabets and a total of nine digits in an ABA number whereas there are seven numbers along with four other numbers depending on the bank.
- Both the numbers help in finding the exact name of the bank, the location of the branch and the place where the account exists.
- Both these figures are for the use of different banks and their businesses with financial institutions and do not directly relate to the owner of the account.