Routing numbers for credit cards do not exist as credit cards have different numbers for identification and security purposes.
First of all, should you turn to your credit card, you will find a large number, consisting of some figures on the front. However, when it comes to checks and debit cards, credit cards have the problem of no routing number. Yes, it is true that credit cards also come with routing numbers.
The short answer is no. Routing numbers are specific to banks and are therefore not associated with credit card usage. The routing number is a unique number and its uses are limited only to checking accounts and debit card accounts. It enables the banks to forward the transaction to the appropriate financial account. Credit cards employ various methods of making transactions, and therefore, they do not have route numbers.
Routing Number: What It Is & Why You Need It
A routing number is a 9-figure number that defines a specific bank and the position of the bank account in the United States. In the United States, it is sometimes known as an ABA routing number or routing transit number (RTN).
Routing numbers serve a couple of key functions:
- Identify Financial Institution: The first 4-5 digits characterize the bank's credit or the credit union where the account is to be found.
- Identify Branch Location: The next 4 digits indicate a branch location or Federal Reserve District of the banking or credit institution.
- Identify Account: The final digit is an encoded check digit used to ensure that the routing number entered is correct.
When you require to facilitate bank drafts or automated payments, or when you need to give your account information to receive payments, you must provide your bank routing number beside your account number.
In combination, the routing number and account number form an effective, one-two punch that lets users easily locate and select their checking account or debit card account for a transaction.
The following issue is the most striking difference between a debit card and a credit card.
The key difference between debit cards and credit cards is how they access money:
Debit Cards: Debit cards are linked with a checking account of a bank or a credit union you have with the issuer of the card. They help you to easily use the money that you have already stored with the account when making the purchases.
That is why a debit card requires a routing number – to allow each transaction to withdraw the amount from your checking account.
Credit Cards: Credit cards are the forms of vise credit, usually, having a predetermined amount of credit limits. Every time you use your credit card, you are borrowing money from the credit card company or bank. After this, he pays back the remaining amount plus interest in monthly installments known as statements.
Thus we see, that credit cards do not have direct access to their linked depository accounts. They use it to purchase goods and services and the credit card company lends the money as a short-term loan without requesting an account or routing number. The funds are not taken from some sort of bank or checking account.
How exactly can credit cards be used in a similar manner as debit cards?
Credit card companies have introduced more ways to use your credit cards similar to debit cards:
- Credit Cards with Checking Accounts: It is now possible to have checking accounts from your credit card issuers and you get a routing number linked with your credit card. They work virtually like debit cards in that they withdraw the payment amounts directly from the linked checking account.
- Debit-Like Credit Transactions: Most credit card companies enable CNP debit cards to debit your checking account as soon as the transaction occurs and add it to your credit card balance. This way they can use the number of the credit card as they use the debit card on the Internet, by phone, etc.
Nevertheless, conventional credit cards, with no link to a checking facility, have no routing numbers. The card numbers are used for identification, credit authorization of purchases, and for payments to be matched against the card number.
Four groups of numbers can be derived from the 16-digit credit card number as follows:
Then again, if they do not have routing numbers, what do all those credit card numbers symbolize? Here’s a breakdown:
- First Digit: Determines the brand of a card, that is Visa, MasterCard, Discover or American Express, and so on.
- Next 5 digits: Specifies the actual credit card company.
The next 9 digits: The identification number that can identify a single credit card among all the rest of the accounts solely belongs to it. Every credit card needs to be unique and thus no two credit cards can share a number.
- Final digit: The last digit that matches the total sum of the other digits by the Luhn algorithm checksum methodology. This is useful in identifying errors that may have been entered in the numbers before performing other operations such as the transactions.
You can therefore see that credit card numbers are aimed at identifying your account and checking the authenticity of your card through the checksums. They do not require routing information since payments are generated from the consolidated pool of money by the credit card firm.
When Would You Require The Account And Routing Number For A Credit Card?
As noted earlier, some credit card companies now offer checking accounts that are virtually attached to their cards, thereby making most of their credit cards act like debit cards. These hybrid accounts offer FDIC insurance and a convenient feature of traditional savings accounts.
These checking accounts are linked to the deposit accounts and may require complete banking information for such processes as setting up direct deposits, linking the external accounts, certain authorization of billing companies, and so on.
However, for ordinary credit cards, the only requirements to make payments and other purchases are the 16-digit credit card number together with the expiration date and the security code known as the CVV number. Products such as online e-checks may need banking information – but in case of need, one can use a debit card, or link checking account.
The Takeaway: The factors that the buyers consider when purchasing include simplicity and the simplicity of the processing stages.
Credit cards do not possess routing numbers since they perform functions that are in some way, removed from those of a standard checking account. It appears that various identification numbers and procedures, which enable credit payments, facilitate the transfer of money.
Therefore, no routing numbers on credit cards help in the smooth processing to the advantage of merchants, banks, credit card networks, customers… the entire system!
