Bank of America provides another real-time payment solution to car dealers
Dealers can now receive funds from sales immediately, seven days a week
MINNEAPOLIS–(BUSINESS WIRE)–With another innovative RTP® Network solution, US Bank can now provide loan funds to car dealers immediately after the loan contract is finalized by the bank. Following a successful pilot completed in June, US Bank has already enabled more than 800 car dealers to receive auto loan funds via a real-time payment. The bank expects to deliver the solution to more dealerships in the coming months as the bank continues to improve operational efficiency for car dealerships.
While the traditional ACH payment method for auto loan financing can take several days – especially when sales occur outside banking hours – real-time payments to dealers are fast, secure and available seven days a week, including holidays.
Auto dealers using real-time payments gain a competitive edge, with greater control over cash flow and improved Contract-in-Transit metrics, a key indicator for auto dealers and their employees. The solution is also available for dealers of recreational vehicles.
“US Bank is focused on delivering innovative real-time payment solutions to solve what our customers tell us are payment problems,” said John Hyatt, president of merchant services at US Bank. “We’re simplifying loan payment processes to help our retail customers better control their cash flow, giving them a competitive edge and peace of mind. Dealer interest in this solution in recent weeks has grown rapidly, with many particularly excited to complete their deals within moments of a consumer being approved for a loan, particularly in the evenings and even on Saturdays and Sundays.”
Earlier this year, US Bank announced it was partnering with Lithia & Driveway to help Driveway.com become the first online car dealership to pay customers over the RTP® network.
With The Clearing House’s RTP® Network, the first new payment rail in the US 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 first ever payment on the RTP network, is one of the top senders of RTP transactions in the US. The bank is constantly developing new ways for companies to use real-time payments, such as a new solution to offer greater speed and security for money movement between individual investors and broker-dealers.
About US Bank
US Bancorp, with approximately 70,000 employees and $591 billion in assets as of June 30, 2022, is the parent company of US Bank National Association. The Minneapolis-based company serves millions of customers locally, nationally and globally through a diversified mix of businesses: Consumer and Business Banking; payment services; Corporate & Commercial Banking; and wealth management and investment services. The company has been recognized for its approach to digital innovation, social responsibility and customer service, including being named one of the 2022 World’s Most Ethical Companies and Fortune’s Most Admired Super Regional Bank. Learn more at usbank.com/about.
Contacts
Todd Deutsch, US Bank Public Affairs & Communications
[email protected] | 612.303.4148
