ABA number (Noun): An American Bankers Association (ABA) routing number is a nine-digit code that identifies the financial institution where an account is held. It is used to facilitate electronic funds transfers, such as direct deposits or automatic bill payments.
For example, a sample ABA routing number for Bank of America is “061000051”.
ABA numbers are crucial for ensuring accurate and timely electronic payments. They help banks identify the sender and receiver of funds, preventing errors and delays. Historically, ABA numbers were developed in the 1910s to standardize the routing of paper checks, but their significance has grown immensely in the digital era of electronic banking.
