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I am looking to use an encrypted field as an external ID for the upsert function. As long as the user running the upsert has read access, the fact that it ID for the upser is encrypted shouldn't matter, correct? I want to make sure that when I try to upsert, it wouldn't see an encrypted value, as compared to the text value.

For example, if I wanted to encrypt last name using case-insensitive encryption. Then, I wanted to upsert based on last name, would it see 'Smith' to perform the upsert? OR would it see the encrypted value?

Thanks!

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I'm assuming you're using Shield Platform Encryption?

https://help.salesforce.com/articleView?id=security_pe_custom_fields.htm&type=5

"To encrypt custom fields that have the Unique or External ID attribute, you can only use deterministic encryption".

https://help.salesforce.com/articleView?id=security_pe_deterministic_considerations.htm&type=5

This article is mainly focused on querying and finding the data using, like you mentioned, the non-encrypted value. This would apply in the same way for dataloader. You should be able to use the non-encrypted value in an upsert to match the records and upsert.

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