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Why does TelPay ask for the last three digits of the biller account number to identify the biller?

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This method has proven over the years to be the most effective way of identifying the biller you wish to pay. It is usually available on the statement or invoice you are about to pay (if not, see below). If you have more than one account with the same biller, it ensures that the payment you are about to make gets credited to the correct account.

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