The accounting staff of a business may not be inclined to issue bank account information to any outside parties, for the following reasons:
- Someone could use the information to create an ACH debit that removes cash from the company bank account
- The company switches accounts so frequently that they would have to continually issue notification changes to any customers making ACH payments into the account
Both issues are eliminated when the universal payment identification code (UPIC) is used.
The UPIC should be considered a banking address, rather than an account number. The corporate bank account number is linked to the UPIC. The UPIC then acts as a front that masks the underlying account number. When combined with a universal routing/transit (URT) number, the effect is to send the information associated with all incoming payments to The Clearing House Payments Company, which then processes the transaction into the company's actual bank account.
Other benefits of the UPIC include:
- Debit blocking. All ACH debit transactions are blocked through the UPIC, which eliminates the risk of someone extracting funds from the company bank account with such a debit. This means the company can freely distribute its UPIC information to the public.
- Same address. The company can retain the same UPIC, even if the underlying account number changes. If there is an account change, the new account number is simply linked to the existing UPIC.
- Check fraud. There is no way for anyone to use the UPIC to commit fraud with a check, since the UPIC can only be used to clear electronic payments, not checks.