BPAY
Encyclopedia
BPAY is a payment system
in Australia
which enables payments to be made through a financial institution's online
or telephone banking facility to merchants who are registered BPAY billers.
BPAY is a registered trading name of BPAY Pty Ltd, a wholly owned subsidiary of CardLink Services Limited. It is owned by a number of financial institutions, including all the major banks.
The paying financial institutions will verifying that the payment amount is available from the selected account and that the person using the service has used the correct PIN access. It will then issue a receipt which can be printed by the customer as proof of payment. If payment is made over the phone, a receipt number will be given. The financial institution will electronically transfer the authorized payment information - comprising the biller code, reference, authorized payment amount, as well as other security information - to the merchant's financial institution which will credit the merchant's designated account.
In 2002 BPAY View was introduced. BPAY View is a bill payment service that delivers bills and statements electronically through Australian internet banking sites.
BPAY is now available through more than 170 participating Australian banks, credit unions and financial institutions, covering around 90% of Australian consumer bank accounts. Each month approximately 18 million bills to the value of $11 billion are paid to more than 16,000 business using BPAY.
, called the capture reimbursement fee (CRF). The fee is payable by the biller's financial institution to the bill payer's financial institution. Consumers can be charged for the use of BPAY at the discretion of their bank.
Payment system
A payment system is a system used for transferring money. What makes it a "system" is that it employs cash-substitutes; traditional payment systems are negotiable instruments such as drafts and documentary credits such as letter of credits. With the advent of computers and electronic...
in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
which enables payments to be made through a financial institution's online
Online banking
Online banking allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society.-Features:...
or telephone banking facility to merchants who are registered BPAY billers.
BPAY is a registered trading name of BPAY Pty Ltd, a wholly owned subsidiary of CardLink Services Limited. It is owned by a number of financial institutions, including all the major banks.
Outline of the system
Merchants who wish to accept payment using BPAY register as BPAY billers, usually via the the merchant's financial institution's website. BPAY will then allocate the merchant a biller code. This biller code together with the BPAY logo and customer reference number must appear on the merchant's invoices. To make a payment using BPAY, the customer would go to their financial institution's website or phone banking system, indicate the biller code, the customer reference number, amount to pay and select the bank account to be debited. Most financial institution's websites allow payments to be scheduled for payment at some later date, or to be periodical, and will allow the biller code and reference number to be saved for easy recall for subsequent payments.The paying financial institutions will verifying that the payment amount is available from the selected account and that the person using the service has used the correct PIN access. It will then issue a receipt which can be printed by the customer as proof of payment. If payment is made over the phone, a receipt number will be given. The financial institution will electronically transfer the authorized payment information - comprising the biller code, reference, authorized payment amount, as well as other security information - to the merchant's financial institution which will credit the merchant's designated account.
History
The BPAY system was launched in 1997, becoming the world's first single bill payment service adopted across the banking sector.In 2002 BPAY View was introduced. BPAY View is a bill payment service that delivers bills and statements electronically through Australian internet banking sites.
BPAY is now available through more than 170 participating Australian banks, credit unions and financial institutions, covering around 90% of Australian consumer bank accounts. Each month approximately 18 million bills to the value of $11 billion are paid to more than 16,000 business using BPAY.
Fees
The BPAY scheme sets an interchange feeInterchange fee
Interchange fee is a term used in the payment card industry to describe a fee paid between banks for the acceptance of card based transactions. Usually it is a fee that a merchant's bank pays a customer's bank however there are instances where the interchange fee is paid from the issuer to...
, called the capture reimbursement fee (CRF). The fee is payable by the biller's financial institution to the bill payer's financial institution. Consumers can be charged for the use of BPAY at the discretion of their bank.