ACH Number
What Is an ACH Number?
An ACH (Automated Clearing House) number is a routing number used for electronic transactions between banks and other financial institutions. This number system was created in the 1970s when the shift to larger toward electronic banking began.
ACH routing numbers have nine digits that are unique to their respective financial institutions. The first two digits often range from 61 to 72, another way to distinguish them from ABA routing numbers.
ACH numbers are used for electronic funds, transfers of small one-time payments or scheduled recurring payments. ACH transactions include payroll and other direct deposits, consumer bills, tax refunds, tax payments, and other payment services.
An ACH number helps transfer the funds more quickly –often on the same day or the next business day– than paper check payments or transfers. ACH payments are often free, which makes a good way for businesses to pay salaries.
ACH Numbers Vs. ABA Numbers
ABA (American Bankers Association) Numbers were developed in 1910 to help identify banks and financial institutions. They are typically nine digits long, with the first two numbers ranging between 00 and 12.
ABA numbers apply to paper checks, so they are sometimes referred to as check routing numbers. Smaller banks have a single routing number, while multi-national banks may have several numbers. Customers use routing numbers to pay bills, reorder checks, or set up a direct deposit account with an employer.
What Is an ACH Number?
An ACH (Automated Clearing House) number is a routing number used for electronic transactions between banks and other financial institutions. This number system was created in the 1970s when the shift to larger toward electronic banking began.
ACH routing numbers have nine digits that are unique to their respective financial institutions. The first two digits often range from 61 to 72, another way to distinguish them from ABA routing numbers.
ACH numbers are used for electronic funds, transfers of small one-time payments or scheduled recurring payments. ACH transactions include payroll and other direct deposits, consumer bills, tax refunds, tax payments, and other payment services.
An ACH number helps transfer the funds more quickly –often on the same day or the next business day– than paper check payments or transfers. ACH payments are often free, which makes a good way for businesses to pay salaries.
ACH Numbers Vs. ABA Numbers
ABA (American Bankers Association) Numbers were developed in 1910 to help identify banks and financial institutions. They are typically nine digits long, with the first two numbers ranging between 00 and 12.
ABA numbers apply to paper checks, so they are sometimes referred to as check routing numbers. Smaller banks have a single routing number, while multi-national banks may have several numbers. Customers use routing numbers to pay bills, reorder checks, or set up a direct deposit account with an employer.