Bill payment system and method with merchant information

A computerized payment system by which a consumer may instruct a service provider by telephone, computer terminal, or other telecommunications methods to pay various bills without the consumer having to write a check for each bill. The system operates without restriction as to where the consumer banks and what bills are to be paid. The service provider collects consumers' information, financial institutions information and merchant information and arranges payment based on a financial risk analysis to the merchants according to the consumers instructions.