Companies in the transaction processing industry now have a way to receive payments electronically without revealing sensitive banking information that could potentially make them a target for fraud. The Electronic Payments Network (EPN) developed the Universal Payment Identification Code (UPIC), which is currently being used by private and public entities throughout the U.S.

A UPIC is a unique bank account identifier that looks and acts like a standard bank account number - but it essentially becomes the electronic payment address for an organization. It travels via the Universal Routing and Transit number to initiate Automatic Clearinghouse (ACH) payment credits only - not debits. A recent EPN research study found that within a six month period, 38 percent of large corporations reported unauthorized debit activity. With the UPIC, accounts are protected from unauthorized checks, debits and demand drafts.

The UPIC masks a company's account information, making it safe to share the information and/or print the code on an invoice. Doing so encourages the use of electronic payments between companies, reducing transaction and processing time. Click to see a graphic that depicts how the UPIC works between an organization and its associated bank.

UPICs are both permanent and secure, and multiple UPICs can point to a single bank account. System compatibility is not an issue because a UPIC can be seamlessly integrated with any cash management or accounts payable system.

Company mergers or corporate restructuring is also made easier through usage of a UPIC. In addition to being secure and permanent, the UPIC is portable, eliminating the time and effort previously required to notify investors and trading partners of the change.

The Electronic Payments Association (NACHA) is one of the most recent companies to begin using Universal Payment Identification Code (UPIC). The company will use the UPIC to receive payment credit for publication purchases, conference registrations, teleseminars and other educational programs.

To learn more about how the UPIC works, visit www.upic.com. Information about the UPIC can also be found here, on the EPN Web site.