What Makes UTR Number and Transaction ID Unique for Digital Payments?

In today’s digital age, more people are using digital payments to purchase goods and services. It is because digital payments make transactions easier and faster. But we all wonder whether they are safe and secure.

In this blog, we will learn about UTR Numbers and Transaction IDs, two unique identifiers that reduce the risk of potential fraud and errors. Continue to read to get a deeper insight into their differences, roles and benefits in digital payments.

What is UTR Number and Transaction ID?

NTT DATA Payment Services defines the UTR Number and Transaction ID as follows. 

The Unique Transaction Reference (UTR) Number is a unique identifier for each financial transaction processed through the banking system or financial institution. It consists of a fixed length of characters in letters and numbers. Once the transaction is completed, it is generated and included in the payment confirmation message. 

A Transaction ID is a unique identifier typically displayed on the payment receipt or confirmation page. It is a string of letters and numbers generated by the payment system and assigned to each transaction. Both resolve payment-related issues or discrepancies, such as a failed or disputed transaction. 

UTR Numbers and Transaction IDs are used in a wide variety of digital payments including, online purchases, bill payments, and money transfers. 

Difference Between UTR Number and Transaction ID

Though UTR Numbers and Transaction IDs are very similar to each other, here are the three differences to identify them. 

Feature	UTR Numbers	Transaction IDs
Assigned by	UTR Numbers are assigned by the bank to each transaction	Transaction IDs are assigned by the payment system to each transaction
Purpose	It is used for tracking and reconciliation of payments between banks	It is used for tracking and identification of payments within the payment system
Usage	It is used in inter-bank transactions	It is used in intra-bank transactions
Length	It contains a fixed length of 22 to 24 characters	The length depends on the system used

UTR Numbers and Transaction IDs: The Unique Characteristics

NTT DATA Payment Services lists the unique characteristics of UTR Numbers and Transaction IDs. 

• Individuality: UTR Numbers and Transaction IDs are unique to each payment transaction, paving the way for easy and accurate tracking and reconciliation of payments. 
• Length: UTR Numbers have a fixed size and are generated using specific algorithms or formulas. The length of Transaction IDs depends on the system used. 
• Non-reusability: Since the UTR Numbers and Transaction IDs are unique, they cannot be reused for any other transaction and make the particular financial transfer unique to identify.
• System compatibility: To ensure seamless integration and efficient processing, UTR Numbers and Transaction IDs are designed to be compatible with the systems used for digital payment processing. 
• Security: UTR Numbers and Transaction IDs enhance digital payments’ safety by providing a unique identifier for each transaction, making detecting and preventing unauthorised activities easier. 

What Are The Roles Of UTR Numbers And Transaction IDs?

UTR Numbers and Transaction IDs are crucial in digital payments, particularly electronic fund transfers (EFT). Their roles are almost similar, and some of them are given below.

• Better customer service: With UTR Numbers and Transaction IDs, customers can easily track the status of their payments and receive updates on issues that may arise, heightening customer service and satisfaction.

• Enhanced security: UTR Numbers and Transaction IDs help strengthen the security of digital payments, preventing fraudulent activities and paving the way to detect such malicious actions.
• Accurate transaction identification: UTR Numbers and Transaction IDs help identify and track individual transactions, lowering the risk of errors and duplication. 

NTT DATA Payment Services state the other roles of UTR Numbers and Transaction IDs, such as improved transparency, reduced risk of fraud, efficient payment processing, etc. 

Benefits and Limitations of UTR Numbers and Transaction IDs

Both UTR Numbers and Transaction IDs have similar benefits, as they are unique identifiers that help in financial transactions. Here are the profits of UTR Numbers and Transaction IDs in digital payments. Though UTR Numbers and Transaction IDs provide several benefits in digital payments, there are also some limitations.

Benefits of UTR Numbers and Transaction IDs In Digital Payments

Limitation of UTR Numbers and Transaction IDs In Digital Payments

Unique Identification: Each transaction is processed accurately and effectively with unique identifiers like UTR Numbers and Transaction IDs.  Tracking of payments: UTR Numbers and Transaction IDs help track the transaction of funds from one account to another, ensuring quick and accurate processing of funds and lowering the risk of errors or fraud. High transparency: With UTR Numbers and Transaction IDs, the payment process is more transparent, the payment status can be easily tracked, and updates can be received instantly. Fraud prevention: UTR Numbers and Transaction IDs help lower the risk of fraud and unauthorised access in each transaction.  Improved payment processing: UTR Numbers and Transaction IDs account for faster and more accurate transaction processing.

The potential of human error: If UTR Numbers or Transaction IDs are entered incorrectly, it causes delays or errors in the payment process. Technical Issues: It can prevent UTR Numbers and Transaction IDs from being generated or used correctly, causing payment delays and errors.

Best Practices For Using UTR Numbers And Transaction IDs In Digital Payments

Here are the best practices for using UTR numbers and Transaction IDs in digital payments.

Feature	UTR Numbers	Transaction IDs
Secure	Keeping the UTR number confidential: Though sharing the UTR numbers brings no threat to theft of personal and financial sensitive data or information, sharing it with the third party can pave the way for them to collect information about the transactions.	Keeping the Transaction ID secure: It is necessary to keep it safe and secure and only shared with authorised personnel to prevent unauthorised access and fraud.
Verify	Verifying UTR number: It is always advisable to verify UTR numbers before initiating the payments with the bank or financial institution to ensure it is correct and avoid payment delays or errors.	Verifying Transaction IDs: As soon as the payment is completed, the Transaction ID is shared with the customers. With this, they can verify and track the status of their payment.
Monitor	Saving the UTR numbers for reference: Though it is not necessary to save the UTR number for all transactions, if you make a crucial payment transaction, it is better to save the UTR number for future reference in solving any payment-related issues or disputes.	Saving the Transaction ID for reference: It helps in monitoring the payment and helps identify any issues and corrective actions as needed. It also helps cross-check if the Transaction IDs are used correctly, supporting the payment policies.
Reconcile	Using the UTR numbers for reconciliation: To ensure the payments are processed accurately, UTR numbers are reconciled to avoid errors and discrepancies, providing a better payment experience.	Using Transaction ID for reconciliation: Transaction IDs are reconciled to ensure the payments are processed correctly, identify discrepancies and resolve them quickly.

Choose NTT DATA Payments To Advance Your Business!

If there is a leading provider of digital payment solutions, it is NTT DATA Payment Services. Out of all the reasons to choose NTT DATA Payment Services, factors like security, reliability and easy usage top the list. To complement the statement, NTT DATA Payment Services provides UTR numbers and Transaction IDs to ensure that transactions are processed accurately and efficiently.  

Asia’s paramount payment service provider, NTT DATA Payment Services, shows a high success rate of transactions, provides instant activation and settlement, has over 100 digital payment options, assures data security, offers easy EMI options and provides 24*7 customer care support. 

Conclusion

In today’s rapidly evolving digital landscape, UTR (Unique Transaction Reference) numbers and Transaction IDs are essential for digital payment systems. They assure the accuracy and security of transactions. 

Both are unique and generated for each payment, accounting for easy tracking, reconciliation, and identification of the particular transaction. UTR and Transaction ID facilitate safe, reliable and secure payments without the risks of errors, fraudulent activities and disputes.

UTR Number FAQs

1. Who generates UTR Numbers?

The Unique Transaction Reference (UTR) Number is generated by the bank and financial institutions that process transactions to help track and reconcile the transactions.

2. What is Transaction ID in online payments?

The Transaction ID is a unique identifier the payment processing system generates for a specific online payment transaction to track and identify the transaction throughout the payment process.

3. Why are reference numbers used when making payments?

Reference numbers are used to track and reconcile payments, avoid payment processing errors, resolve payment-related disputes, and make payment processing more efficient.

4. Is UTR Number unique?

The Unique Transaction Reference (UTR) number is unique for each financial transaction and it is processed by the banks. It should also be noted that two banks may generate different UTR numbers for the same transaction.

5. Is it safe to share UTR Numbers?

It is entirely safe to share UTR numbers since they are reference identification numbers to track the particular transaction and do not contain sensitive information such as personal or financial data. However, sharing the UTR number with third parties may pave the way for them to access information about the transaction.