How to Avoid Chargebacks

Chargebacks can cause a great deal of trouble for a business, especially when merchant accounts initiate fees for them. Credit card processing has a wealth of benefits, but it also has complications such as consumer chargebacks. Consumers initiate chargebacks for a wide variety of reasons including fraud, attempted theft, honest mistakes and discontent. Every business […]

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Building Your Small Business

Accepting credit cards is a necessity for small businesses because it allows them to remain competitive, offer convenient payment methods to buyers and not forego a sale in the event customers come up short of cash. Understanding the world of credit card processing can seem daunting at first, but these 3 key principles help address […]

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Reading Reviews Before Selecting Your Merchant Account Provider

When looking to select a company to use as a credit card processor, it’s wise to choose one that offers all the right services at a good price. However, one should take it further, and here are three things to look at when reading reviews for a merchant services provider. Speed: Without a doubt, if […]

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All About Flagship Merchant Services

Flagship Merchant Services has been helping merchants conduct transactions online for many years. As a leader in credit card processing and merchant accounts services, Flagship Merchant Services has remained focused on giving business owners of all size the solutions they need to effectively do business completely online. How does credit card processing work? There are […]

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All About

Without a doubt, when looking to get credit cards processed, one should go with a solid, reliable and trustworthy company. When doing so, it’s easy to avoid mistakes that others suffer from. While true, one should know where to look, and is a great place to go, and here are three reasons why. Provide […]

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What is the Bankruptcy Notification Service?

Without a service, it’s hard for people to know when someone went bankrupt, and this is often a problem when dealing with merchant accounts or other financial services. For this reason, the two major worldwide credit card companies, Visa and MasterCard, have developed a service to help people track bankruptcies. With this, people can see […]

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Each financial institution in the United States is identified by a unique nine digit number commonly referred to as an ABA number. Routing numbers are used in combination with either a personal or business checking or savings account number. ABA numbers are never used for credit card processing unless a consumer has been issued a pre-printed check by the credit card company.

Although some financial institutions may have more than one routing number that consumers may use, customers may only use an authorized ABA number that is designated specifically for their personal or business checking or savings account. When businesses process checks, e-checks or wire transfers, it is extremely important for the business owner to confirm that the ABA routing number matches the information for the bank. If the information does not match, then the transaction will be declined and the monies will not be credited to the proper merchant accounts.

ABA numbers are called routing numbers and typically appear at the bottom left corner of pre-printed checks issued by the bank. The checking or savings account number typically appears to the right of the ABA routing number. Businesses that process checks and e-checks must know the proper ABA routing number to complete the transaction. Consumers do not need to physically have a printed check on hand to pay by check. In fact, many businesses with merchant accounts offer credit card processing and also accept and process e-checks. Businesses that choose to process e-checks will need to gather the bank’s ABA routing number and customer’s account number to process a transaction.

When possible, businesses should try to get the customer’s signature written authorization to process the transaction. However, written authorization is not always necessary. This is true because many businesses offer credit card processing and accept e-checks by phone. Many consumers have their ABA number memorized, but many do not. Consumers who do not know their ABA number may stop in at a branch, log in online or contact their financial institution via telephone to request their routing number.

Clearly, ABA numbers are extremely important to business owners because they can be used to process a wide range of transactions, including but not limited to deposits, withdrawals, ACH transactions (automatic clearing house), bill pay, e-checks, wire transfers and other transactions. To ensure proper processing to merchant accounts, business owners need to make certain they enter the right ABA number whenever completing a check or e-check transaction. Both the routing and account number must match the number on file at the financial institution. If the numbers do not match, then the transaction will most likely be declined.