method and apparatus for processing payment transactions using debit card numbers without the requirement of a personal identification number is disclosed . a telepay system of the present invention provides an interface between a standard touchtone telephone and at least one debit card network such that real - time bill payment transactions may be effected using a keypad of the telephone . the telepay system includes an interactive voice response unit for prompting a payor to enter an access code , account number , debit card number and payment amount and for informing the user of the status of the transaction . real - time processing of transactions is provided through use of debit card networks , rather than the automated clearing house . the telepay system is also capable of performing settlement functions and processing inquiries by payees of the system regarding previously processed transactions .