CORPORATIONS

Business to Business Initiatives

The Clearing House, which operates CHIPS, is leading several initiatives to simplify the process of sending and receiving electronic payments for corporations.

Our research shows that, as paper checks become more expensive and cumbersome, corporations will turn to electronic payments – card, ACH, and wire. Wire payments offer many advantages if the timing is critical, the dollar amount is high, there is concern over potential fraud, or if it is an international payment.

This same research shows that B2B electronic payments, including wire, are more cumbersome than they need to be – and that’s where The Clearing House gets involved.

Two priorities now…

• Standards for Remittance Information with Payments
• A standard set of data elements that all companies need to post most of the payments they receive electronically through ACH and Wire.

● Secure Account Identifiers

• Universal Identification Code (UID) for CHIPS
• Universal Payment Identification Code (UPIC) for ACH

● These codes are used in place of a business’ checking account number
when sending and receiving electronic payments. They are secure and
work just like an account number – no special programming is required.