Difference Between ABA Routing Numbers and ACH Routing Numbers (with Table)

Money transfers by consumers from their banks are often achieved in some ways. Money is often deposited directly by writing checks, which is additionally called paper transfers, wire transfers, and electronic transfers. to make sure that the transfer has been routed properly, we want information which is provided to us by bank routing numbers.

The routing numbers are called “routine transit number” or RTN and “bank routing number.” These numbers are nine-digit numbers printed at the left side of rock bottom of the check. they assist in informing the financial institutions within the U.S. where the cash is being transferred to or where it’s being transferred from. Every bank or financial organization features a unique code which identifies a selected bank in a specific state.

The difference between ABA Routing Numbers and ACH Routing Numbers is ABA routing numbers are used for paper or check transfers; whereas ACH routing numbers are used for electronic transfers.

Comparison Table Between ABA Routing Numbers and ACH Routing Numbers

Parameter of ComparisonABA Routing NumbersACH Routing Numbers
Full formAmerican Bankers AssociationAutomated Clearing House
InclusionAll ABA Routing Numbers are not ACH Routing NumbersAll ACH Routing Numbers are ABA Routing Numbers
RangeABA Routing Numbers range from 00-32ACH routing numbers range from 61-72
Paper transfersABA routing numbers are used for paper or check transfersACH routing numbers are not used for paper or check transfers
Electronic transfersABA Routing Numbers are not used for electronic transfersACH Routing Numbers are used for electronic transfers

What is ABA Routing Numbers?

ABA routing numbers are related to the American Bankers Association and help accurately transfer funds from one account to a different. they’re standardized and comprises nine digits, typically starting with two digits between 00 and 12.

ABA routing numbers encircle all routing numbers, including ACH routing numbers and domestic wire transfer numbers. So when people use the term routing number, they’re typically about an ABA routing number.

Generally, smaller banks are assigned one routing number, while large, multinational banks may have several. within the latter case, each routing number typically designates a special state. for instance, the routing number for Chase in Texas is 111000614, and in Arizona, it’s 122100024.

You typically need a routing number when paying bills, reordering checks, or setting up an immediate deposit together with your employer (for your paycheck) or the IRS (for a tax refund).

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What is ACH Routing Numbers?

Automated clearing house routing numbers are 9 digit routing numbers which are assigned for electronic transactions between financial institutions. This number is exclusive to banks and their branches and identifies the clearinghouse.

Every bank has many routing numbers, and every branch features a unique code. ABA routing numbers are printed at rock bottom left of the checks. ACH routing numbers also are nine-digit numbers, but one must confirm with the bank if the ABA and ACH numbers are an equivalent.

They can be checked and determined on websites. ABA is present as “check routing number” and ACH is present as “electronic” or “direct deposit” on the bank’s website. One can call customer service and determine about these routing numbers too.

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To transfer money internationally, if you’re using your bank, you’ll normally get to make a wire transfer because the ACH system is US-only. However, wires can sometimes be difficult to make and maybe quite expensive, so there’s more information on wire transfers below – and also on non-bank alternatives like TransferWise.

TransferWise is unusual with the fact that they use the US-based ACH system for international payments, which could well compute cheaper for you. Their smart new technology connects local bank accounts everywhere the planet and customers sending money both ways.

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Main Differences Between ABA Routing Numbers and ACH Routing Numbers

  1. ABA routing numbers encircles all routing numbers, including ACH, meaning all ACH routing numbers are technically ABA routing numbers, though the bank may have a special ACH routing number for electronic transfers.
  2. All ABA routing numbers are not ACH routing numbers, but some are. believe it like squares and rectangles. All squares are rectangles, but all rectangles are not squares as it doesn’t meet the criteria.
  3. ABA and ACH routing numbers do have the same format, but the numbers can be different. Verification with the bank before using one of the numbers to move money is a compulsory step.
  4. Electronic transfers, like electronic bill pay or online money transfers, are almost like checks. For paper transfers, the bank can be identified with the ABA number. For electronic transfers, the bank can be identified with the ACH (Automated Clearing House) number. for many institutions, this is often an equivalent number, but it doesn’t need to be, although both are going to be 9-digit numbers.
  5. Wire transfers use a transfer service like SWIFT or Fedwire to send funds to a different financial organization. Whereas electronic transfers through the ACH system are generally at no cost to the buyer, wire transfers generally carry a price from the sending institution. However, for the fee, you’ll often receive a same-day transfer of the funds, whereas electronic transfers can take 3-5 days to post to your account.

Conclusion

ABA routing numbers are used for paper or check transfers whereas on the other hand ACH routing numbers are used for electronic transfers. ABA routing numbers and ACH routing numbers could also be an equivalent for a few institutions or they could be separate. In ABA routing numbers the first two digits of the 9 digits range from 00-32 but ACH routing numbers range from 61-72.

ABA and ACH routing numbers have an equivalent format, but they can be different numbers. All ACH routing numbers are technically ABA routing numbers but not all ABA routing numbers are ACH routing numbers, but some are.

References

  1. https://routingnumberslist.com/fidelity-routing-number/
  2. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2318092