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US Bank delivers real-time payments to auto dealers

Source: US Bank

With another innovative RTP Network solution, U.S. Bank can now provide loan funds to auto dealers instantly after the loan contract is finalized by the bank.

Following a successful pilot completed in June, U.S. Bank has already enabled more than 800 auto dealers to receive funds from auto loans via a real-time payment. The bank expects to deliver the solution to more dealers in the coming months as the bank continues to improve operational efficiencies for auto dealers.

While the traditional ACH payment method for funding auto loans can take several days - especially when sales are made outside of 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 advantage, with greater control over cash flow and improved Contract-in-Transit metrics, a key performance indicator for auto dealers and their employees. The solution is also available to recreational vehicle dealers.

“U.S. Bank is focused on delivering innovative real-time payment solutions to resolve what our customers tell us are their payments pain points,” said John Hyatt, president of dealer services at U.S. Bank. “We’re simplifying loan payment processes to help our dealer clients better control their cash flow, which gives them a competitive edge and peace of mind. Dealer interest in this solution over the last few weeks has grown rapidly, with many particularly excited about finalizing their deals within moments after a consumer is approved for a loan, especially during the evenings and even on Saturdays and Sundays.”

Earlier this year, U.S. Bank announced that it worked 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 U.S. in more than 40 years, U.S. Bank helps businesses send and receive payments instantly 24 hours a day, 365 days a year. U.S. Bank, which participated in the first ever payment on the RTP Network, is one of the top senders of RTP transactions in the U.S. The bank is continually developing new ways for companies to utilize real-time payments, such as a new solution to provide greater speed and security to money movement between individual investors and broker dealers.

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