A system and method of real-time interconnect billing to facilitate invoicing and reconciliation between interconnected communication and service providers. The fully customizable, scalable, and network-based system rates and monitors costs, incorporates agreements between interconnected providers, invoices, bills, and reconciles to establish an accurate and cost-effective accounting of provider revenues and costs. The system is able to communicate with devices, networks, and interconnect providers to obtain, provide and exchange billing information and payments. The system updates subscriber accounts and alerts the home provider, subscribers, interconnect providers and users of these updates.