DEFINITION of 'ABA Transit Number'

A unique number assigned by the American Bankers Association (ABA) that identifies a specific federal or state chartered bank or savings institution. In order to qualify for an ABA transit number, the financial institution must be eligible to hold an account at a Federal Reserve bank. ABA transit numbers are also known as ABA routing numbers, and are used to identify which bank will facilitate the payment of the check.

BREAKING DOWN 'ABA Transit Number'

The ABA Transit number was originally developed in 1910 to indicate check processing endpoints. Since then, the number's use has increased to include participants in check clearing between banking institutions, automated clearing houses and online banking activities.

The ABA check routing number is usually the first nine digits in the bottom row of numbers on any check. For example, if the bottom row showed 123456789 0100100120: 0123, the ABA routing number would be 123456789.

RELATED TERMS
  1. American Bankers Association - ...

    The American Bankers Association (ABA) is the largest banking ...
  2. Bank Marketing Association - BMA

    The publishing arm of the American Bankers Association, a trade ...
  3. American Institute Of Banking - ...

    Founded in 1907, the American Institute of Banking (AIB) is a ...
  4. Australian Bankers Association ...

    An association of banks that work on behalf of its member financial ...
  5. Routing Transit Number - RTN

    A nine-digit numerical code used to identify a banking or other ...
  6. Bank of First Deposit - BOFD

    The bank where a check is initially deposited to an account. ...
Related Articles
  1. Insights

    What Do the Federal Reserve Banks Do?

    These 12 regional banks are involved with four general tasks: formulate monetary policy, supervise financial institutions, facilitate government policy and provide payment services.
  2. Personal Finance

    How to Cancel a Check

    If you've had a personal check lost or stolen, the next best step is to cancel the check by calling your bank and putting a stop payment on the check.
  3. Investing

    A Guide to Bank Accounts

    Find out which type of bank account suits your specific needs.
  4. Personal Finance

    Bank Teller: Career Path & Qualifications

    Learn more about what it takes to become a bank teller and whether the position qualifies you for promotion into higher bank positions.
  5. Personal Finance

    Top 5 Reasons Banks Won't Cash Your Check

    Learn the top reasons that a bank won't cash your check, and find out what steps you can take to prevent those scenarios from happening.
  6. Insights

    Signature Bank Expands Client Banking Teams (SBNY)

    New York-based Signature Bank enhanced its private client banking network with the addition of three veteran bankers.
  7. Insights

    A Brief History of U.S. Banking Regulation

    From the establishment of the First Bank of the United States to Dodd-Frank, American banking regulation has followed the path of a swinging pendulum.
  8. Tech

    The Pros And Cons Of Internet Banks

    Learn how internet banking services stack up against those of their brick-and-mortar peers.
  9. Personal Finance

    Career Advice: Investment Banking Vs. Private Banking

    Examine the two potential career options of investment banking and private banking, with an eye toward choosing the most suitable career.
RELATED FAQS
  1. What is a CUSIP Number?

    The Committee on Uniform Securities Identification Procedures developed a system that identifies securities. Read Answer >>
  2. Do mutual funds have CUSIP numbers?

    Learn what CUSIP numbers are and how they are used to classify securities, such as mutual funds, registered in the U.S. and ... Read Answer >>
  3. What are the differences between preference shares and bonds?

    Learn what information banks keep on file for their customers, and understand how this information can be used to deny an ... Read Answer >>
  4. How long does it take a check to clear?

    It usually takes two days for a check to clear, but in some cases it may take longer. Discover how banks treat large deposits ... Read Answer >>
  5. What are the most common ETFs that track the banking sector?

    Learn about common bank ETFs, and find out which ones focus on the international financial sector, big banks, regional banks ... Read Answer >>
Hot Definitions
  1. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
  2. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  3. Risk Averse

    A description of an investor who, when faced with two investments with a similar expected return (but different risks), will ...
  4. Indirect Tax

    A tax that increases the price of a good so that consumers are actually paying the tax by paying more for the products. An ...
  5. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  6. Beta

    Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. ...
Trading Center