A “security service routing number” is a unique numerical code assigned to a financial institution that identifies its role in processing electronic funds transfers. For instance, the “123456789” routing number for the fictitious “Security Bank” distinguishes it from other banks involved in a wire transfer.
Security service routing numbers streamline interbank transactions, ensure proper fund routing, and prevent errors. Historically, the establishment of the Automated Clearing House (ACH) in the 1970s standardized routing numbers, facilitating seamless electronic payments.