Certified Compensation Professional (CCP) Electronic Transactions Association (ETA) Practice Exam 2025 - Free CCP Practice Questions and Study Guide

Question: 1 / 1560

What is the role of the ABA Transit Routing Number?

To identify the type of transaction

To identify the issuing bank of depository accounts

The ABA Transit Routing Number serves a crucial function in identifying the issuing bank of depository accounts. This number, which consists of nine digits, is used to represent a specific financial institution in the United States within the banking system. It allows for efficient processing of various types of transactions, such as checks and electronic payments, by ensuring that funds are routed to the correct bank.

By distinguishing between different banks, the ABA Transit Routing Number plays a pivotal role in streamlining the transaction process across various platforms and institutions. This identification is particularly vital for operations such as direct deposits, wires, and automated clearing house transactions, where the accuracy in determining the correct bank is essential for preventing errors and delays in fund transfers.

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To track fraudulent transactions

To secure ATM transactions

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