What is routing number?

Ⅰ What is a Routing Number?

A routing number is a 9-digit code. It is used in the banking system of the United States and Canada to identify financial institutions and to ensure that the transfer and clearing of funds between banks can proceed smoothly. It is also known as the ABA Number (American Bankers Association Number) and was developed by the American Bankers Association under the supervision of the Federal Reserve.

1. Structure and Composition

Routing Number consists of 9 digits and is usually divided into three parts:

• The first four digits indicate the area code of the Federal Reserve Bank, identifying the geographic location of the bank.
• Fifth and sixth digits: indicate the branch code of the bank.
• The seventh to ninth digits of is the unique identification code of the bank, which is used to distinguish different banks within the same region.

2. Main Uses

• Check Processing: When a check is used, the payee bank identifies the bank to which the check belongs through the Routing Number to ensure the smooth transfer of funds.
• Automatic Transfer: When performing automatic transfers (e.g., payroll direct deposit, regular bill payment, etc.), the routing number can make sure that the funds are accurately sent to the designated account.

Ⅱ Difference between Routing Number and IBAN and SWIFT

Routing Number, IBAN and SWIFT are different codes used for inter-bank identification and funds transfer, and they have different functions and structures as follows:

1. IBAN

IBAN is a number used for international transfers, mainly in Europe and some other regions. Its structure usually consists of a country code, a bank code, an account number, and a check digit, and it can be up to 34 digits long. For example: GB34TCCLOC906674286. The main purpose of the IBAN is to accurately identify the bank and its account. It is required for transfers in the Eurozone and failure to use the IBAN may result in additional fees.

2. SWIFT

SWIFT Code is a unique code used to identify a bank and is widely used for international money transfers worldwide.SWIFT Code consists of 8 or 11 characters, with the first 4 digits being the bank code, the middle 2 digits being the country code and the last 3 digits being the branch code. For example, CITIHKHX stands for Citibank Hong Kong Branch.The main function of SWIFT Code is to identify the bank in international money transfers to ensure that the funds can be smoothly transferred to the correct financial institution.

3. Main Differences

Comparison of IBAN, SWIFT, and Routing Number

Ⅲ How to Query Routing Number

There are various ways to check Routing Number; here are some common ways:

1. Check the check

The most direct way is to look for it in the bottom left corner of the check. Usually, there will be a set of 9 digits printed at the bottom of the check, which is the Routing Number.

2. Online Banking

Log in to your bank's online banking service, and you can usually find the Routing Number on the Account Information page, either in the Account Overview or the Information & Services section.

3. Mobile Banking App

The routing number can also be found on the account details page of your bank's mobile app, similar to online banking.

4. Bank Customer Service

If you are unsure of your Routing Number, you can call your bank's customer service number and provide the relevant identifying information. Different types of accounts may use different Routing Numbers, so it's best to make sure you're looking for the right one.

5. Third-party tools

Some third-party websites and money transfer companies also offer Routing Number lookup services, which you can find by entering the name of your bank and the state in which you live.

 6. Statements

Your bank's paper statement may also have a routing number printed on it, so you can check the account information.

Note that different banks may use different Routing Numbers for different types of transactions (e.g. check transactions, electronic transfers, etc.), so it's a good idea to make sure you are using the correct Routing Number when you make a transaction to avoid delays or incorrect transactions.

 XTransfer is a one-stop financial and risk management service provider committed to making cross-border payment seamless and cost-effective for SMEs. We connect trusted financial institutions with SMEs around the world through technology, allowing SMEs to enjoy the same level of cross-border financial services as large multinational corporations.