Overview of EBPP (Electronic Bill Presentment and Payment)

EBPP, or electronic bill presentment and payment, is a system that is commonly used in the banking industry today. With this system, a bill will be provided to a customer over the Internet, and then the customer will pay for the bill over the Internet as well. With this system, traditional checks are not used but electronic payments are instead utilized. Here are a few things to consider about electronic bill payment and how it works.


EBPP is essentially the same thing as electronic billing. With this system, a company will send an electronic statement to a customer. For example, this is common with utility providers or mortgage lenders. Instead of sending a paper bill, the company will send an e-mail to a customer. At that point, the customer will then look at the bill by checking their e-mail or logging into a secure website. Once the customer has reviewed the bill, they can then make a payment in the appropriate amount to the biller. 

Two Types of Electronic Bill Presentment and Payment

There are two main types of electronic bill presentment and payment that are commonly used in the industry today. The first type of electronic bill presentment and payment is referred to as a biller-direct system. This system is commonly used with utility companies today. For example, the utility company will send an electronic bill to the customer and the customer will make a payment directly to the company. There is no intermediary used in this transaction.

The other type of electronic bill presentment and payment is known as the bank-aggregator strategy. With this strategy, an individual works with a bank in order to make electronic payments to multiple billers simulatenously. This is often referred to as online banking or online bill pay. With this system, an individual will log into an online bank account and specify the amount and date of a payment. Typically, the consumer will have all of the bills that they regularly pay set up in the online banking system. At that point, the individual can then simply log into an account, select the payments that need to be made and then press submit. The bank will then handle sending all the payments to the appropriate places. Some banks will send out these payments immediately, while others take a little bit more time. In fact, some banks may take anywhere from 3 to 5 days to send out these payments to the appropriate places.


NACHA stands for National Automated Clearing House Association. This is an organization that helps set the standards for the Automated Clearing House. The Automated Clearing House or ACH is the system that is commonly used to distribute electronic payments in the banking industry. This organization works to help prevent fraud with this type of billing and payment system. Financial institutions generally follow the guidelines that are set by NACHA.