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RTP Use Cases


Car Sales and Auto Lending


Legacy banking/payment processes often don’t match the needs of car buyers and sellers.


Real-time payments over the RTP® network allow car sellers to receive payment at the same time they hand over the keys to the buyer, removing payment friction and increasing satisfaction for everyone involved in the transaction.

Payment in a new or used car sale is generally made by a cashier’s check, cash, or maybe an ACH transaction. Each one is familiar to buyers and sellers, but each also has limitations. Cashier’s checks must be cashed during banking hours, which is problematic in the evenings or over weekends when many car sales are finalized. Even if a check is deposited electronically via remote deposit capture, funds availability is not required until the next business day. ACH payments are also limited by ACH processing and settlement windows. Cash, while convenient, is also risky when thousands of dollars are being exchanged. Real-time payments over the RTP® network removes these potential payment frictions from the sales process.

For example, Lithia Motors, one of the largest automobile dealers in the United States and owner of the used-car marketplace, recently started to send real-time payments to sellers to help remove friction with the payment and improve customer satisfaction. TD Auto Finance, a division of TD Bank, recently rolled out real-time payment for auto dealers.

Now, with real-time payments over the RTP® network, used-car sellers can receive payment for a vehicle even before it leaves the driveway, and auto dealers can receive payment immediately as well. The result is a smoother sales process that removes the inconvenience and uncertainty with slower forms of payments and gets funds to the seller or dealer immediately.