Routing vs. Transit Number: U.S. Guide for Canadians

A routing number is a 9-digit code used exclusively in the United States to identify a specific bank for ACH and wire transfers. A transit number is a 5-digit code used in Canada to identify a specific bank branch, which must be paired with a 3-digit institution number. If a U.S. platform like Stripe, Amazon, or a U.S. vendor asks a Canadian business for a routing number, you cannot simply combine your transit and institution numbers. To fill out these forms, you need a true U.S.-domiciled account.

Key Takeaways

• The Format Mismatch: U.S. banking systems look for a 9-digit ABA Routing Number. Canadian systems use a 5-digit Transit Number + 3-digit Institution Number. They are completely incompatible networks.
• The "Adding Zeros" Myth: Many Canadian founders try adding a zero to the front of their 8-digit Canadian transit/institution combo to make it 9 digits. This will fail and result in bounced payments and platform suspensions.
• The Frictionless Setup: You don't need to physically cross the border, hire lawyers to open a U.S. LLC, or apply for an SSN to get a U.S. routing number. Platforms like Bank on Loop issue true U.S. routing numbers to Canadian entities in minutes, entirely online.

Table of Contents

1. Routing Number vs. Transit Number: The Direct Comparison
2. Decoding Your Canadian Bank Details
3. Why U.S. Platforms Reject Canadian Accounts
4. The Loop Advantage: Getting a U.S. Routing Number Without a U.S. LLC
5. Frequently Asked Questions (FAQ)
6. Conclusion

1. Routing Number vs. Transit Number: The Direct Comparison

When setting up your e-commerce payout stack or onboarding with a massive U.S. supplier, getting the digits right is the difference between smooth cash flow and frozen funds. Here is the exact breakdown:

2. Decoding Your Canadian Bank Details

If you look at the bottom of a Canadian business cheque or check your online banking portal, you will see a string of numbers. Canada’s system is highly localized, breaking your bank identity down into three parts:

1. The Transit Number (5 digits): Identifies your specific home branch (e.g., the TD branch on Queen Street).
2. The Institution Number (3 digits): Identifies the overarching bank (e.g., 004 for TD, 003 for Scotiabank, 001 for BMO).
3. The Account Number (7 to 12 digits): Your specific account.

Because the U.S. system doesn't care about your specific localized branch in the same way, U.S. forms simply have no data fields to accept this three-part Canadian breakdown.

3. Why U.S. Platforms Reject Canadian Accounts

“Why can’t I just use the USD account I opened at RBC or BMO?”

This is the most common frustration for Canadian founders. As of 2026, over $2.5 billion in cross-border trade happens between the U.S. and Canada every single day. Yet, the banking infrastructure remains disconnected.

When you open a "USD Account" at a traditional Canadian bank, the account holds U.S. Dollars, but it is domiciled in Canada. It still operates on the Canadian EFT network and uses a Transit Number.

When you try to plug that Canadian USD account into:

• Stripe or Shopify Payments: They will flag it as an international account and charge you a hidden 1% to 2% cross-border payout fee.
• Amazon U.S. Seller Central: They require an ACH-compatible routing number to disburse your sales revenue.
• Deel or Gusto: U.S. payroll systems cannot push ACH payments to Canadian transit numbers.

If you attempt to force the form by adding a "0" to your 8-digit Canadian transit/institution code to fake a 9-digit U.S. routing number, the ACH network will instantly reject it.

4. The Loop Advantage: Getting a U.S. Routing Number Without a U.S. LLC

Historically, the only way to get a legitimate 9-digit U.S. routing number was to hire an expensive cross-border lawyer, incorporate a C-Corp in Delaware, apply for an Employer Identification Number (EIN) from the IRS, and fly to a U.S. border town to visit a branch in person.

Bank on Loop completely bypassed this friction.

Built specifically for Canadian businesses scaling globally, Loop provides you with a true, U.S.-domiciled commercial account using your existing Canadian corporation details.

• Instant ACH Access: Within minutes of approval, Loop generates a legitimate 9-digit U.S. ABA Routing Number and Account Number in your company’s name.
• Seamless Platform Integration: You can immediately plug these details into Stripe, Amazon, PayPal, or any U.S. vendor portal. The platforms recognize it as a standard U.S. bank.
• Zero Cross-Border Fees: Receive USD payouts from American clients natively (no SWIFT fees), and hold that cash in USD.
• Spend What You Earn: Use Loop’s multi-currency corporate cards to pay for your U.S. SaaS (like AWS, Google Ads, or software) directly from your USD balance, completely avoiding the traditional 3% bank FX markup.

5. Frequently Asked Questions (FAQ)

Can I convert my Canadian transit number to a U.S. routing number?

No. There is no mathematical formula or converter to turn a Canadian transit number into a U.S. routing number. They exist on entirely different financial networks. You must open a U.S.-domiciled account to get a routing number.

Do I need an SSN or ITIN to get a U.S. routing number?

Not anymore. While traditional U.S. banks (like Chase or Bank of America) require a U.S. Social Security Number (SSN) or an EIN attached to a U.S. entity, cross-border platforms like Loop underwrite you based on your Canadian corporate registry (e.g., your CRA Business Number).

Is a SWIFT code the same as a routing number?

No. A SWIFT code (or BIC) is an international identifier used for global wire transfers (8 to 11 characters, containing letters and numbers). A U.S. routing number is strictly a 9-digit numerical code used for domestic U.S. transfers (ACH and domestic wires).

6. Conclusion

Stop trying to force Canadian banking details into American forms. As your business scales into the U.S. market, relying on workarounds or accepting hefty international wire fees is no longer viable.

By upgrading your financial stack to include a true U.S. routing number, you unlock frictionless payments, eliminate cross-border payout penalties, and look like a local business to every U.S. vendor and platform you interact with.