- TD Auto Finance is enabling real-time payments for its network of auto dealers.
- The move will fund dealers throughout the day as new contracts are booked.
- TD Auto Finance is leveraging The Clearing House’s Real Time Payments (RTP) network to fund dealers in real time.
TD Bank announced its TD Auto Finance division has enabled real-time payments for its network of auto dealers this week.
To facilitate the flow of real-time payments, TD Auto Finance will no longer send ACH batch payments overnight. Instead, the finance arm is funding dealers throughout the day as contracts are booked. As a result, dealers will have better visibility into their finances and will see improved cash flow management.
“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.
The move makes TD Auto Finance the first indirect auto lender to offer the ability to send real-time payments nationwide. We’re proud to be the first major auto lender to introduce this capability for dealers and we believe our focus on driving payments innovation is critical to deepening our dealer relationships,” added Stuart.
To help auto dealers make payments in real time, TD is leveraging The Clearing House’s Real Time Payments (RTP) network, which it first connected to in November of 2019. Since that time, TD has seen increased interest for real-time payments. To meet this demand, TD said it will “continue to invest in this capability.”
TD Auto Finance piloted this move last October with a small group of car dealers. Today’s real-time payments capabilities will be available in phases over the coming weeks to dealers whose banks use The Clearing House’s RTP network.
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