Definition
BPAY is an Australian bill payment service that lets customers pay invoices through their own online banking using a biller code and a customer reference number. Businesses register as billers through their bank and print both numbers on their invoices. Each payment is matched automatically to the right customer and invoice.
Also called: BPAY biller code, Customer reference number, CRN
BPAY in practice
The biller code identifies your business and stays the same for every invoice. The customer reference number (CRN) identifies the customer or invoice and usually includes a check digit, so mistyped numbers are rejected.
BPAY payments made before the bank's cut-off are usually processed the same or next business day. Because the reference is built in, reconciliation is easier than with plain bank transfers.
BPAY suits businesses with many regular customers, such as utilities, schools, and property managers. Smaller businesses often find PayID or bank transfer simpler, since becoming a biller involves fees and setup through a sponsoring bank.
Example
A Melbourne school's invoice shows "BPAY biller code 123456, reference 100245987". Parents pay term fees in their banking app, and each payment is matched to the right student account automatically.
Frequently Asked Questions
How do I pay a BPAY invoice?
In your online banking, choose BPAY, enter the biller code and reference number from the invoice, and the amount. The payment is processed through your bank.
Can a small business offer BPAY?
Yes, through a bank that sponsors BPAY billers. There are setup and per-transaction fees, so it pays off mainly when you bill many customers regularly.
Related terms
- PayID PayID is an Australian service that links an easy identifier, such as an email address, mobile number, or ABN, to a bank account.
- BSB number A BSB number is the six-digit code that identifies an Australian bank and branch, usually written in the format 123-456.
- Reference number A reference number is any identifier placed on an invoice or payment to connect related records, such as the client's project code, a contract number, or the text the client should put in their bank transfer so the payment can be matched to the invoice.
- Reconciliation Reconciliation is the process of matching payments received in your bank account to the invoices they settle, and confirming that your invoicing records agree with your bank records.
- Customer account number A customer account number is a unique code a seller assigns to each client to identify them across invoices, statements, and payments.
This page is for general information only and is not legal, tax, or financial advice. Rules change and vary by location, so consult a qualified lawyer or accountant about your situation.