A Bank Payment Obligation (BPO) is an irrevocable and independent undertaking given by an obligor bank - typically the buyer's bank - to a recipient bank - the seller's bank - to pay a specified amount on an agreed date. It carries the condition of a successful electronic matching of data according to the Uniform Rules for Bank Payment Obligations (URBPO) in publication 750 of the International Chamber of Commerce,or ICC.

A BPO is a bank-to-bank arrangement that involves an undertaking by the obligor bank,which is often the buyer's bank,to another bank - the recipient bank - which is often the seller's bank.

The URBPO is by nature different from other ICC practice rules,such as UCP 600 (Uniform Customs and Practice for Documentary Credits) and URDG 758 (Uniform Rules for Demand Guarantees). For example,the UCP 600 acknowledges the beneficiary - often the seller - as the presenter. Under the URBPO the term "beneficiary" has a different meaning. For example "recipient bank" is defined as the bank that is the beneficiary of a BPO. This offers some challenges to the URBPO and its usage. This article aims to examine those challenges.

The ICC Banking Commission offers official opinions on the interpretation of its rules; including the URBPO 750. Only one official opinion has been issued for that,namely ICC Opinion TA847rev.