US Bank offers real-time payments to car dealerships
Through another innovative solution from the RTP network, US Bank can now provide loan funds to car dealerships instantly after the bank finalizes the loan agreement.
Following a successful pilot project completed in June, US Bank has already enabled more than 800 car dealerships to receive auto loan funds via real-time payment. The bank plans to provide the solution to more dealerships in the coming months as the bank continues to improve the operational efficiency of car dealerships.
While the traditional ACH payment method for auto loan financing can take days – especially when sales are made outside of bank hours – real-time payments to dealerships are fast, secure and available seven days a week. days a week, including holidays.
Auto dealerships using real-time payments gain a competitive advantage, with better cash flow control and improved in-transit contract metrics, a key performance indicator for auto dealerships and their employees. The solution is also available for recreational vehicle dealers.
“US Bank is focused on providing innovative real-time payment solutions to solve what our customers tell us are their payment challenges,” said John Hyatt, president of dealer services at US Bank. “We are simplifying loan payment processes to help our dealer customers better control their cash flow, giving them a competitive advantage and peace of mind. Dealer interest in this solution over the past few weeks has grown rapidly, with many particularly excited to finalize their deals moments after a consumer has approved a loan, especially the evening and even on Saturdays and Sundays.
Earlier this year, US Bank announced it was working with Lithia & Driveway to help Driveway.com become the first online car dealership to pay customers through the RTP® network.
With The Clearing House’s RTP® network, the first new payment rail in the United States in more than 40 years, US Bank helps businesses send and receive payments instantly 24 hours a day, 365 days a year. US Bank, which participated in the very first payment on the RTP network, is one of the main senders of RTP transactions in the United States. The bank is continually developing new ways for companies to use real-time payments, as a new solution to provide more speed and security in the movement of money between individual investors and brokers.