What is the Difference Between ABA routing numbers and ACH routing numbers?
🆚 Go to Comparative Table 🆚The main difference between ABA routing numbers and ACH routing numbers lies in their purpose and usage. Here are the key distinctions:
- Purpose and Usage: ABA routing numbers are used for both electronic and paper transactions, while ACH routing numbers are specifically used for electronic transactions. ABA routing numbers are essential for processing paper checks, facilitating electronic payments, and routing funds to the correct bank or financial institution. On the other hand, ACH routing numbers are used for electronic funds transfers, such as direct deposit of payroll, government benefits, and tax refunds.
- Security Measures: ACH transactions are typically processed through secure networks and subject to security measures, while ABA transactions may have different security measures depending on the financial institution.
- First Two Digits: The first two digits of ACH routing numbers usually range from 61 to 72, while the first two digits of ABA routing numbers range between 00 and 12.
It is essential to note that all ABA routing numbers encompass all routing numbers, including ACH routing numbers. However, not all ABA routing numbers are ACH routing numbers, but some are. Depending on the financial institution, ABA and ACH routing numbers might be the same or different. It is always a good idea to check with your bank to determine which routing number is required for a specific type of transaction.
Comparative Table: ABA routing numbers vs ACH routing numbers
ABA routing numbers and ACH routing numbers are both used for transferring funds, but they serve different purposes and are used for different types of transactions. Here is a table summarizing their differences:
| Feature | ABA Routing Numbers | ACH Routing Numbers |
|---|---|---|
| Purpose | Used for both electronic and paper transactions | Used specifically for electronic transactions |
| First Two Digits | Range between 00 and 12 | Typically range from 61 to 72 |
| Structure | Standardized, consisting of nine digits | Similar structure, also nine digits |
| Transactions | Check processing, wire transfers, direct deposits, etc. | Direct deposits of payroll, government benefits, tax refunds, etc. |
| Location | Found on personal checks, bank statements, or by contacting your financial institution | Found on personal checks, bank statements, or by contacting your financial institution |
While some ABA routing numbers are also ACH routing numbers, they are not always the same. Banks may have a special ACH routing number for electronic transfers. Note that not all ABA routing numbers are ACH routing numbers, but all ACH routing numbers are technically ABA routing numbers.
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