What is a routing transit number (ABA) ?
ABA number is a nine digit number bank code to identify the financial institution, only used in United States. ABA numbers format was designed in 1990 by the American Bankers Association to facilitate the sorting, bundling and shipment of paper checks. It is also called routing transit number derived from the bank transit number. This code is present on the bottom negotiable instrument, for example – checks thereby identifying the institution from which it was drawn.
For Fedwire fund transfer procedure it is used by the Federal reserve bank and Automated clearing house use it for bill payments, direct deposit and other automated financial transfer. On a standard check routing transit number appears in magnetic ink character recognition and fraction form. These codes are of two types used for transactions within the United States :
- ABA numbers that are used for wire transfer.
- For the transactions taking place from an account.
What is a BIC Code ?
BIC refers to the Bank identifier Code, it is also called swift code. It is formed of eight or eleven alphanumeric characters and used in international money transfer or wire transfer. First four character depicts bank code , next two are country code and last three characters refers to location code, in case of an eleven digit number last three characters are branch codes.