Routing Number: What It Is And How To Find Yours | Bankrate

PeopleImages/Getty Images Routine banking transactions like online bill payments, check processing and wire transfers require a bank routing number. Here’s an explanation of what a routing number is and how it works.What is a routing number?A routing number is a nine-digit bank identification number. Think of it as a numerical address that allows a bank to send and receive money from other financial institutions. The routing number identifies the financial institution responsible for the payment and ensures that funds go to the right place.Routing numbers were developed by the American Bankers Association in 1910 for processing checks. They’re also known as ABA routing numbers or routing transit numbers. Today, routing numbers are used in numerous banking transactions, such as direct deposits, wire transfers, peer-to-peer payments like Venmo transactions, payments made by phone and more.Each routing number is unique to one financial institution and helps avoid confusion. Routing number...