Systems and methods for automated loan repayment involve utilizing consumer
payment authorization, clearing, and settlement systems to allow a merchant to
reduce an outstanding loan amount. After a customer identifier (e.g., a credit,
debit, smart, charge, payment, etc. card account number) is accepted as payment
from the customer, information related to the payment is forwarded to a merchant
processor. The merchant processor acquires the information related to the payment,
processes that information, and forwards at least a portion of the payment to a
loan repayment receiver as repayment of at least a portion of the outstanding loan
amount owed by the merchant. The loan repayment receiver receives the portion of
the payment forwarded by the merchant processor and applies that portion to the
outstanding loan amount owed by the merchant to reduce that outstanding loan amount.