A unique numerical code assigned to a bank or financial institution.
It helps in identifying where a payment should be processed. Routing numbers are commonly used in countries like the United States, Canada, and the United Kingdom for domestic and international transactions.
For U.S. Transactions, Banks use a 9-digit routing number (also called an ABA routing number) to process direct deposits, wire transfers, and electronic payments.
For International Payments, A routing number may be required along with other banking details like SWIFT codes or IBANs to process global transactions.
Why is a Routing Number Important?
Ensures Accurate Payment Processing: Prevents payments from being sent to the wrong bank.
Required for International Transactions: Some banks will not process payments without a routing number.
Speeds Up Transfers: It reduces the chances of delays and rejections due to incomplete banking details.
How to Use a Routing Number in ZendBusiness?
ZendBusiness allows businesses to make seamless payments across borders. If your supplier provides a routing number, here’s how you should handle it:
Step 1: Request the Correct Banking Details
Before initiating a payment, ask your supplier for their complete banking details, including the routing number if required.
Step 2: Double-check the Routing Number
Mistakes in this can lead to payment failures. Always verify that the routing number in ZendBusiness matches the one on the supplier’s invoice.
Step 3: Enter the Routing Number When Making a Payment
During the payment process in ZendBusiness, you will be prompted to enter the routing number along with other bank details. Input it correctly to avoid errors.
Example in Action:
Imagine you’re paying a supplier in the U.S. for a shipment of goods. The supplier provides the following details:
Bank Name: JPMorgan Chase Bank
Account Number: 123456789
Routing Number: 021000021
When making the payment in ZendBusiness, you must enter 021000021 exactly as provided. If you mistakenly input a wrong digit, the transaction may be delayed or rejected.
What Happens If You Enter the Wrong Routing Number?
Payment Failure: The bank may reject the transaction, causing delays.
Funds Sent to the Wrong Bank: If the incorrect routing number exists, the payment may go to another institution, requiring additional steps to recover the funds.
Extra Processing Time: Incorrect routing numbers can trigger an “Action Required” status in ZendBusiness, meaning you’ll need to fix the issue before the payment can be processed.
By carefully verifying and entering routing numbers, ZendBusiness users can ensure their payments are processed efficiently and without issues.