What is PayID?
- By Book Keeping Pros
- Sources checked 16 Oct 2026
Definition
PayID is a payment service that lets someone pay into a bank account using a simple identifier linked to it, such as a mobile phone number or email address, instead of the account's details. The payer sees the recipient's name before confirming, and the business receives the money as an ordinary transaction in its bank account.
For bookkeeping, a PayID payment received is handled like any other bank deposit: find the invoice or sale it pays and record the money against it in the bank reconciliation. The description the payer types can appear on the statement line, so asking customers to put the invoice number in it makes matching much quicker.
PayID payments move from one bank account to another rather than through a card terminal, so they don't appear in the card provider's settlements. Where customers pay by PayID at the counter, recording those sales as their own payment type keeps the daily sales summary in step with the bank. A business can also pay its suppliers by PayID, and the name shown before paying is a chance to check it matches the supplier on the bill.
In Australia
The RBA describes PayID as a payments service that lets people pay using an identifier such as a mobile phone number or an email address instead of entering bank account details. It says PayID shows the recipient's name before the payment is made, which can help reduce the risk of payments going to the wrong place and of fraud, and that it was introduced in 2018 as part of the New Payments Platform. The RBA groups PayID with account-to-account payments.
The ACCC's guidance on card surcharges says a business may offer a discount for paying a particular way, naming cash and PayID as examples. It says the discount should be made clear before the customer chooses to book, order or pay, and that the displayed price must be the full price for a customer who doesn't get the discount, so the discounted price should not be shown alone or given more prominence.
Worked example
| Bank statement line | Recorded as |
|---|---|
| PayID deposit from Customer A, reference INV-305 | Payment of invoice INV-305 |
| PayID deposit from Customer B, reference March | Checked against Customer B's unpaid invoices, then matched |
| PayID deposit with no reference | Followed up with the payer before it is recorded |
| PayID payment to a supplier, name checked before paying | Payment of that supplier's bill |
Illustrative example only: these rows show the method and are not sourced data.
Common mistakes
- Recording a PayID deposit as a new sale when it pays an invoice already in the books, which counts the income twice.
- Leaving PayID takings out of the daily sales summary because they never went through the card terminal.
- Paying a supplier's PayID without checking that the name shown matches the supplier on the bill.
- Not asking customers for a reference, so deposits can't be traced to the invoices they pay.
Related terms
Related service
Bank reconciliations
Each bank, card and loan account reconciled to its statement.
Sources
- Consumer Payment Behaviour in Australia (RBA Bulletin)
Reserve Bank of Australia. RBA Bulletin, May 2026, released 28 May 2026. Checked 16 October 2026.
Source: Reserve Bank of Australia 2026 Licence: CC BY 4.0.
- Card surcharges
Australian Competition and Consumer Commission. Current at 2 October 2026, released 2 October 2026. Checked 16 October 2026.
Source: Based on ACCC data or other content Licence: CC BY 4.0.