Real-time payments for car dealers are being introduced by TD Bank’s auto finance division, which provides funds throughout the day as contracts are signed.
TD Auto Finance is the first indirect lender and the first major auto lender to offer the means for real-time payments nationwide to its network of car dealers, according to a press release on Thursday (March 31).
The capability enables TD Auto Finance to make payments to dealers throughout the day as contracts are booked and avoid the overnight process of sending batch payments using ACH.
“We understand how important cash flow is to dealers. Our goal with real-time payments is to make life easier for dealers by eliminating the need to wait for payments overnight and giving them maximum confidence in their cash position and ability to operate their business,” said Andrew Stuart, president and CEO of TD Auto Finance.
Stuart added that the bank’s concentration on advancing the development of payments is important in “deepening our dealer relationships.”
The concept of real-time payments from TD Auto Finance was trialed with a pilot group of car dealers in October 2021 and is now being rolled out nationwide in phases to dealers who are already live on The Clearing House (TCH) RTP® network.
Since connecting to TCH network almost three years ago and as a TCH owner bank, TD has seen a surge in demand for real-time payments.
“We are excited to see TD Auto Finance bringing real-time payments to its dealer customers through the RTP network,” said Steve Ledford, senior vice president of product development at The Clearing House. “The RTP network is designed to foster innovation so financial institutions can offer their customers value-added, faster payment services, such as real-time payments from TD Auto Finance. “
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