A 9-digit figure, routing number is made for transaction within United States of America. You can easily find this number at bottom the cheque. This code helps in identifying the bank from where the cheque is drawn.
In early days, routing number’s sole purpose was to sort, bundle and ship cheques back to the issuers. However, since the implementation of Check 21 in America, such numbers have been in use for processing of paper drafts.
One always needs a routing number, if he/she is interested in direct deposits and withdrawals. Another use of routing numbers is bill payment by the Automated Clearing House.
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Swift code is also used to identify a financial institution; it is used only for international transactions. This code ensures that the money reaches the exact location and is a little lengthy than a routing number.
For instance, 021000021 is the routing number of a Chase account, while its swift code is CHASUS33. A swift code is made of different small codes.
For example, the four letters are used for the bank code, and the next two for the country code. The next two and three are respectively used for the location and branch code.
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