Receiving payments electronically? Protect your bank account information today

Dec 12, 2024

To receive payments electronically, most organizations need to share their bank account information with those who owe them money. Banking information includes the bank routing number, which identifies the bank that holds your account, and your account number. However, you don’t have to share your account number when you have a universal payment identification code (UPIC).  

What is a UPIC? 

A UPIC looks just like a bank account number and allows customers to deposit money into your account. The issuing bank also provides a universal routing number to replace the bank routing number. No one can tell you are using a UPIC, unless they try to abuse it.  

Why to consider a UPIC  

UPICs serve to protect against money leaving your account due to fraudulent activity. If a bad actor obtains your UPIC, they cannot use it to withdraw money from your account. Someone can only use it to deposit money into your account and only when using the Automated Clearing House (ACH) network.  

If a bad actor obtains your actual banking information, they can use it to withdraw money from your account. They may purchase goods or services online or pay their bills or create other unauthorized ACH debits, like a utility payment. They can even create fraudulent checks and attempt to cash them at various places.   

The bottom line 

The UPIC works only with ACH transactions, which processes electronic bank-to-bank payments in batches. It does not work for wire transfers, which run through separate secure systems.  

Also, your UPIC stays the same even if your bank account numbers or banking relationship change! 

If you receive electronic payments regularly and want to take extra precautions to protect your bank account, consider a UPIC. 

To learn more: 

The Clearing House is a banking association focused on safety, security, reliability and efficiency of bank-owned payments systems. Learn more by visiting the links below.