Difference Between ABA routing numbers and ACH routing numbers

ABA routing numbers vs ACH routing numbers
 

ABA and ACH routing numbers aid US financial institutions to trace where the money is being transported to. Presently, there are over 21000 routing numbers in active use and every financial institution in the US possesses at least one. What are these routing numbers and what is the difference between these ABA routing numbers and ACH routing numbers?

What is an ABA Routing Number?

An ABA routing number is a 9 digit number that is identified with a particular bank in a particular state. This 9 digit number was designed by the American Bankers Association way back in 1910 to help identify financial institutions. The ABA routing number was primarily used for wire transfers as well in the clearing of cheques.

What is an ACH Routing Number?

In recent years, the legislation called Cheque 21 has been in effect. As such, the ABA routing numbers found use not only in wire transfers and cheque clearing, but also in directing electronic deposits and withdrawals between financial institutions. Also, companies have increasingly used electronic cheques for payments as well as for collecting payments. As such, the ABA routing number has again found use in the electronic network called ACH or Automated Clearing House.

What is the difference between ABA and ACH Routing Numbers?

Routing numbers, whether you call ABA routing number or ACH routing number, are two numbers that help the clearing house identify your bank and to ensure that the money will not be lost in transit. ABA and ACH routing numbers are the same 9 digit numbers found at the bottom of cheques and in direct deposit or withdrawal application forms. Though there is no actual difference between ABA routing numbers and ACH routing numbers, it is referred to as ABA routing number when it is written on a cheque or wire transfer whereas it is referred to as the ACH routing number on an ACH application form.

Summary:

ABA Routing Numbers vs ACH Routing Numbers

• ABA and ACH routing numbers are 9 digit numbers that identify a particular bank in a particular state in the US.

• ABA and ACH routing numbers are commonly used for wire transfers, check clearing and ACH transactions.

• There is no difference between the ABA and ACH routing numbers. Whatever difference they might have would be in their field of use.

• When you say ABA routing numbers, one immediately thinks of wire transfers and cheques. When you say ACH routing numbers, direct deposits and withdrawals come to mind first.