Abstract: Disclosed is a system and method for using third party billing of point of sale transactions. Transaction information is received from a merchant, and the transaction information comprises a telephone number. The system determines if an account associated with the telephone number is activated. If the account is activated, the transaction information is formatted and transmitted to a telephone company for placement on a telephone bill. If the account is not activated, an account is established and activated by capturing the ANI of a telephone call and verifying the ANI against the provided telephone number.