Uses of Bank Routing Numbers

The bank routing number is a unique combination of numbers attached to a specific bank as well as a specific account at that bank. There are several uses for the routing numbers, mostly identification purposes. Using the routing number on an account will help companies know exactly from which bank the money is coming. 

Routing Sequences

A bank routing number is made up of a long sequence of numbers, usually 16, in a specific combination with breaks between the numbers in a specific order. There are a specific set of these numbers that are the same for all accounts at each bank because it is their identification number. The remaining numbers of the account are your specific account information with the last few digits telling the merchant whether the account is a checking or savings account. 

Checks

The routing number is placed on the bottom of all checks to show the legitimacy of the account. It is also used by the electronic system to provide a quick reading of the amount of money in the account when it is scanned. When you pay bills online by check or set up any type of auto deposit to your account, this routing number is needed as well as the check number so that the money can be directly deposited or debited from your account each month. 

Electronic Transactions

Any time you use an electronic transaction such as paying the utility bill, this routing number is needed so that the company knows which bank and specific account the money should be removed. When using this method, the money can be removed immediately or partially withheld so that the merchant knows there is money to cover the transaction.