An ABA (American Bankers Association) number on a check is a nine-digit code that identifies the financial institution where the account is held. For instance, the ABA number for XYZ Bank might be 123456789.
This number is crucial for electronic fund transfers, such as direct deposits and automatic bill payments. It ensures that funds are correctly routed to the intended recipient’s bank account. Notably, the ABA system was established in 1910 to streamline the banking industry and facilitate efficient financial transactions.