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What Financial Advisors need to know

Guide for financial advisors helping clients use Backpack to receive 529 plan funds and pay tuition digitally and securely

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Who is Backpack?

Backpack Payment Technologies Inc. (”Backpack”) is a secure payments platform purpose-built for higher education. Backpack is a financial technology company, not a bank. Banking services are provided by OMB Bank, Member FDIC.

Backpack streamlines complex education payments like 529 plan withdrawals, outside scholarships, and third-party sponsor funding, helping families and universities handle electronic tuition payments with confidence, transparency, and speed.

Backpack partners with Universities of all sizes, including University of Alabama, Miami University, and Lipscomb University to name a few.


What Financial Advisors need to know

  1. What type of account are Backpack accounts?

    Backpack accounts are standard, individually held personal checking accounts - functionally equivalent to a personal checking account held at any major U.S. bank.

  2. Who should create the Backpack account?

    The owner of the 529 Account, typically the parent, should create the Backpack account.

  3. Whose name is the Backpack account in?

    Backpack accounts are standard U.S. checking accounts held in the name of the Backpack account owner. The student (beneficiary) will also be designated during onboarding.

  4. Are these accounts FDIC-insured?

    Yes. These accounts are FDIC-insured through OMB Bank and function like any personal bank account used for ACH withdrawals.

  5. Who does Backpack partner with for banking services?

    Backpack partners with OMB Bank and function like any personal bank account used for ACH withdrawals.

  6. Who does the routing number belong to?

    The routing number on Backpack accounts is the routing number for OMB Bank, formerly known as Old Missouri Bank. This is why you may see OMB Bank appear as the bank on record when inputting or verifying the account information.

  7. Is Backpack secure?

    Yes. Backpack partners with OMB Bank, a state-chartered bank that adheres to strict regulation and requirements set by the FDIC. The FDIC regularly examines the bank, including Backpack’s program.

  8. What are Backpack accounts used for?

    529 plan owners link their Backpack account in order to:

    • Digitally pay tuition to colleges and universities

    • Avoid delays, errors, and risks associated with paper checks

    • Gain proof of delivery and payment for qualified education expenses

    Backpack is often recommended by universities as a preferred digital payment method.

  9. Who can I reach out to at Backpack if I have questions?

    If in doubt, or if further verification is needed, we’re happy to help:


How to help your clients use Backpack

If your client has been advised by their university to use Backpack for tuition payments:

  1. Request their Backpack account details from your client

    These will include routing and account numbers, which are found on the Dashboard of their Backpack account.

  2. Add their Backpack account to the 529 plan

    Log into the 529 plan portal and add the Backpack account as a new external bank account for withdrawals. This typically involves entering the Backpack bank account & routing number. Some plans may require a verification step (e.g., micro-deposits or uploaded documentation).

  3. Initiate the 529 plan withdrawal

    Direct the funds to the Backpack account just as you would with any standard checking account.


Backpack Partners with Universities & Colleges

Backpack is the banking infrastructure for Bursars and University Business Offices, offering a purpose-built banking platform and integrated directly into University ERP systems (e.g. Banner, Workday, PeopleSoft) to handle:

  • 529 Payments: Received electronically from Backpack accounts.

  • Outside Scholarships: Digital submissions, tracked and reconciled in real-time.

  • Third-Party Sponsors: Digital submissions, invoiced, paid, and reconciled via Backpack’s billing tools.

  • Automated Reconciliation: Every payment is mapped to student records automatically.

Backpack works directly with Financial Services and Student Accounts teams to reduce manual processing & errors, eliminate paper checks, and improve transparency for students and staff alike.

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