Here’s a concise guide to using BPAY to accept customer payments (overview, setup steps, how payments work, operational tips and common issues).

What is BPAY — short

• BPAY is an Australian bill-payment system that lets customers pay bills from their bank’s online or mobile banking by entering a biller code and a customer reference number (CRN). It’s widely used in Australia for invoices, utilities and recurring payments.

Is BPAY right for you?

• Good if most customers bank in Australia and want to pay electronically from their bank app or internet banking.
• Not suitable for non‑Australian customers or customers who prefer card/PayPal/AU direct debit unless you offer those alternatives.

How to get started (business steps)

1. Contact your bank
   • BPAY access is provisioned through participating Australian banks. Contact your business banker or payments team at your bank to request a BPAY Biller Code and set up your account for receiving BPAY payments.
2. Apply to be a BPAY biller
   • The bank will help with the formal application and onboarding. You’ll be assigned a BPAY Biller Code (unique to your business).
3. Decide on CRN structure
   • You must generate Customer Reference Numbers (CRNs) that uniquely identify the payer and invoice. Work with your bank on CRN format rules and validation.
4. Update invoices and billing system
   • Add the BPAY Biller Code and CRN to invoices (print, PDF, emailed invoices, and your online billing portal).
   • If you use an accounting/ERP system or billing software, configure it to generate CRNs and include BPAY details on invoices automatically.
5. Test payments (recommended)
   • Run test transactions with your bank to confirm CRNs are applied correctly and reconciliation mapping works.
6. Reconciliation and reporting
   • Implement processes to reconcile BPAY settlements against invoices (bank files, daily reports from bank). Consider automating import of bank remittance files into your accounting system.
7. Go live and communicate to customers
   • Announce BPAY as a payment option and provide clear instructions (examples below).

How BPAY payments flow (high level)

• Customer views invoice → uses their Australian bank’s BPAY function → enters your Biller Code + their CRN → pay.
• Customer’s bank debits their account and sends payment instruction through the BPAY network.
• Your bank receives the funds and credits your account; you receive remittance information (timing/frequency depends on your bank).
• You match the payment to the invoice via the CRN.

Timing, fees and settlement

• Settlement timing, processing windows and fees are set by your bank and merchant agreement. Typical characteristics:
  • Payments often clear to your bank account within 1–3 business days but confirm with your bank.
  • Banks charge fees or per‑transaction/merchant fees for receiving BPAY; check your pricing schedule.
• BPAY payments are generally final when settled, but refund/cancellation processes vary by institution.

Operational best practices

• Make CRNs human- and machine-readable (include check digits if possible) and ensure uniqueness per customer/invoice.
• Place BPAY details prominently on invoices and payment reminders.
• Provide step‑by‑step payment instructions for customers who’ve never used BPAY.
• Automate reconciliation where possible — import bank remittance files (e.g., BSB/CRN mapping) into your accounting software.
• Track and handle exceptions: unmatched payments, mis-typed CRNs, partial payments and refunds.
• Keep clear refund and dispute policies; coordinate with customers’ banks as needed.
• Consider adding BPAY View if you want bills delivered into a customer’s banking inbox (available through participating banks).

Security and compliance

• BPAY operates within bank networks — secure for customers. You still must secure your billing system and protect CRNs and customer data under applicable privacy laws (e.g., Australian Privacy Act if dealing with AU customers).
• Ensure your invoicing and reconciliation meet tax/reporting requirements (e.g., GST receipts).

Common issues and how to handle them

• Wrong CRN entered: customer payment will be received but may be difficult to match — use customer contact to clarify and reconcile with bank remittance files.
• Partial payments: accept partials and ensure invoice status logic handles part‑payments.
• International customers: BPAY is Australia‑centric — offer cards, international bank transfer, or payment gateways for overseas payers.

Sample invoice wording (short)

• “To pay by BPAY: Biller Code: 123456. Reference/CRN: 000123456789. Please allow 1–3 business days for payment to reach our account.”

Alternatives and complementary options

• For full coverage, offer multiple payment options: credit/debit card, direct debit (e.g., BECS for Australian direct debit), PayID/NPP, online payment gateways (Stripe/Adyen) and direct bank transfer alongside BPAY.

If you want, I can:

• Draft invoice templates with BPAY fields.
• Suggest CRN formats and validation checks for your billing system.
• Provide a checklist to hand to your bank when applying for a BPAY Biller Code.

Which of those would be most helpful?