Transit codes consist of a three-part code that includes a branch number, a financial institution number, and a suffix. However, there are some other differences between the two as well. Transit codes are mainly used in Canada, while routing numbers are widely used in the United States. In other words, the main difference between transit codes and routing numbers is the country in which they are used. Transit numbers are used for similar purposes as routing numbers, such as: There is a dash (-) separating the branch code and the institution code.įor example, the transit number 12345-678 means that the bank account belongs to branch 12345 of institution 678.The first five digits indicate the branch where the bank account is held.The transit number is located at the bottom center of a check and consists of two parts: The transit number is also known as branch number or MICR code (Magnetic Ink Character Recognition). It is part of a larger routing number that also includes a three-digit institution code and a leading zero. It is a five-digit code that identifies a specific branch of a bank or credit union. In Canada, however, a transit number has a slightly different meaning. Transit numbers are issued by the Canadian Payments Association (CPA) to each financial institution that is a member of the CPA. Some banks or financial institutions may use the term transit number instead of routing number, but they refer to the same thing. It is simply a different name for the same numerical code. Setting up wire transfers or direct depositsĪ transit number is another term for a routing number.Routing numbers are used for various purposes, such as: Transit code vs routing number: how different?

The check digit 1 verifies the routing number. There is a colon (:) separating the first and second parts of the routing number.įor example, the routing number 0210:0002:1 means that the bank is located in the second Federal Reserve Bank district (New York) and has the institution code 0002.The last digit is a check digit that validates the routing number.The next four digits identify the specific bank or credit union.The first four digits indicate the Federal Reserve Bank district where the bank is located.The routing number is located at the bottom left corner of a check and consists of four parts: The routing number is also known as ABA RTN, which stands for American Bankers Association Routing Transit Number. It is used to clear funds for electronic transfers or process checks. Routing numberĪ routing number is a nine-digit code that identifies a bank or financial institution in the United States.

Routing numbers are used in the United States while transit codes are used in Canada. Transit codes and routing numbers are two terms that are often used interchangeably, but they actually refer to two different things.īoth are used to identify financial institutions. If you’re wondering “Is transit code the same as routing number?”, then here is your answer!

What do these terms mean and how are they different: transit code vs routing number?ĭNBC’s experts will explain the meaning and usage of these terms and how they relate to your bank account. If you had ever used online banking or electronic funds transfer, you could have encountered some terms like routing number or transit number.

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