What Is A Bank Routing Number & How Do You Find It?
Routing numbers ensure payments are sent to the right bank or financial institution. Here's how to easily find your routing number.
As a business owner, there are several scenarios that require providing bank routing numbers, such as filing taxes, processing payroll, and even receiving loan disbursements.
But what is a bank routing number, and why is it important? This post explores bank routing numbers, how you can find them, and how they’re typically used.
Table of Contents
- What Is A Bank Routing Number?
- How To Find A Bank Routing Number
- When Do You Need Your Bank Routing Number?
- The Bottom Line On Bank Routing Numbers
- FAQs About Bank Routing Numbers
What Is A Bank Routing Number?
A bank routing number is a 9-digit number that uniquely identifies your bank account. Also known as American Bankers Association (ABA) routing numbers or routing transit numbers, these numbers were originally created by the ABA to make the check transaction process faster and more efficient. Routing numbers are also used for direct deposit forms, apps like Venmo and CashApp, or payments through services like PayPal.
Routing numbers are assigned to specific financial institutions and act as an address that banks use for sending and receiving money. The routing number prevents funds from being sent to the wrong institution. All bank routing numbers begin with a 0, 1, 2, or 3.
Bank routing numbers are only needed for transactions when money is being transferred directly to or from an account. A routing number is not required for debit or credit card transactions.
How To Find A Bank Routing Number
There are several ways you can find your bank routing number, including:
- Your monthly bank statement
- Your online bank account (website or app)
- Your bank’s customer service team
- The ABA’s routing number lookup service
- The bottom left corner of a paper check
Unlike bank account numbers, the bank routing number is not unique to your specific account. It’s easy to find this number through the ABA’s routing number lookup service without worrying about the security of your account.
Major banks have routing numbers that are specific to the state in which the account originated. If you search for your routing number online, make sure it’s for the correct bank and the specific state, as well.
When Do You Need Your Bank Routing Number?
There are a number of situations in which you’ll need to provide your bank routing number.
The Bottom Line On Bank Routing Numbers
Whether you’re processing payroll for employees or applying for a small business loan, it’s important to understand bank routing numbers and know how to find them. Fortunately, this information is easy to find, and if you have any questions, you can always reach out directly to your bank or financial institution for assistance.
Don’t forget to check out Merchant Maverick’s other great business banking and small business resources. From choosing a bank for your small business to getting a loan from your bank, we provide guidance to help you every step of the way.