Universal Payment Identification Code
Encyclopedia
A Universal payment identification code or UPIC is an identifier (or banking address) for a bank account in the United States used to receive electronic credit payments. A UPIC acts exactly like a US bank account number and protects your sensitive banking information. Your actual bank account number, including your bank's routing transit number
, are masked by the UPIC. Only credit transactions to your account can be initiated with a UPIC. All direct debit
s are blocked which should mitigate unauthorized transactions to your account.
Other benefits of UPICs include:
Concerns with UPIC include:
UPIC is developed and marketed by the Electronic Payments Network
.
Routing transit number
A routing transit number is a nine digit bank code, used in the United States, which appears on the bottom of negotiable instruments such as checks identifying the financial institution on which it was drawn...
, are masked by the UPIC. Only credit transactions to your account can be initiated with a UPIC. All direct debit
Direct debit
A direct debit or direct withdrawal is an instruction that a bank account holder gives to his or her bank to collect an amount directly from another account. It is similar to a direct deposit but initiated by the beneficiary...
s are blocked which should mitigate unauthorized transactions to your account.
Other benefits of UPICs include:
- UPICs mask confidential banking information, reducing the risk of fraud while facilitating secure electronic payments.
- UPICs are restricted to credit payments, preventing unauthorized debits.
- UPICs remain with the customer regardless of banking relationships, making any change of bank or account transparent to trading partners.
- UPICs point to a single bank account, however one account can have several UPICs
Concerns with UPIC include:
- UPICs only work for NACHA's Automated Clearing HouseAutomated Clearing HouseAutomated Clearing House is an electronic network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit payroll and vendor payments. ACH direct debit transfers include consumer payments...
or ACH credit transactions. FEDWIREFedwireFormally known as the Federal Reserve Wire Network, Fedwire is a Real Time Gross Settlement Funds Transfer system operated by the Federal Reserve Banks that enables financial institutions to electronically transfer funds between its more than 9,289 participants...
credits cannot use UPICs.
- Your bank must use the Electronic Payments NetworkElectronic Payments NetworkThe Electronic Payments Network is an electronic automated clearing house that provides functions similar to those provided by Federal Reserve Banks...
or EPN for ACH processing to issue UPICs.
UPIC is developed and marketed by the Electronic Payments Network
Electronic Payments Network
The Electronic Payments Network is an electronic automated clearing house that provides functions similar to those provided by Federal Reserve Banks...
.