For now, merchant services remain the preferred means that auto retailers use to secure payment for deposits, in-person sales, and parts and services. As a familiar choice for customers, it can be implemented in both face-to-face and e-commerce settings. KEY BUSINESS PAYMENT OPTIONS Payment Type Payment Description Impact Real Time Payments Electronic payments through RTP member banks • Immediate, irrevocable settlement. • Low transaction cost. • Minimal incidence of fraud (0.1% of all RTP payments according to The Clearing House).3 Same Day ACH Electronic payments through any financial institution • Same business day settlement up to 2:00 p.m. • Low transaction cost. Purchasing and Virtual Cards Individual cards or virtual card numbers issued for one time or repetitive payments to OEMs, vendors and service providers • Same day settlement to seller. • Extends days of payables outstanding. • Lowers administrative costs. Checks Paper-based payments • Variable settlement. • High end-to-end cost. • High incidence of fraud — 63% of businesses have experienced check fraud.2 As you consider the best type of payment for each purpose, keep in mind that a bank like Truist can accept a single file with multiple payment types and then separate and direct each payment where it needs to go. That consolidated payments approach could simplify the time your finance and technology teams spend staging payments. BUILDING A PAYMENTS STRATEGY The range and sophistication of payment options continue to evolve. Payments planning as you work toward creating a payments policy can help ensure your choices align with your business goals and provide the most efficient and cost-effective option for each type of payment you make. Developing a sound payments process starts with a careful assessment of all your incoming and outgoing payments, along with the business requirements behind each one. Examine each type of payment you make in terms of security, speed, cost and convenience involved in moving those funds. Questions you will want to consider include: • When should you remit payment based on terms and discounts? • Do you have a hierarchy of preferred payment options based on transaction cost and ability to mitigate fraud? For example, your preferred payment method may be virtual cards, followed by ACH and RTP. • Do you have segregation of duties where one person enters the payment and a second person approves the payment? A payments strategy can guide you in improving the use of your working capital as you hold onto funds longer before remitting payment, send payments the most cost-effective way, mitigate fraud risks and ensure proper payment authorization. As you begin to design your own payments strategy, refer to the business payments options outlined in the previous chart. 1. Digital Auto Report 2023 Volume 1 – Understanding Customer Preferences and Implications, PWC, 2023. https://www.strategyand.pwc.com/tr/tr/pdf/digitalauto-report-2023.pdf. 2. AFP 2023 Payments Fraud and Control Survey, Association for Financial Professionals, 2023. https://www.jpmorgan.com/content/dam/jpm/commercialbanking/insights/cybersecurity/download-payments-fraud-Survey-keyhighlights-ada.pdf. 3. John Adams, Real-time payments leave little time to spot fraud, American Banker, Oct. 23, 2023. Truist Bank, Member FDIC. ©2025 Truist Financial Corporation. Truist, the Truist logo and Truist Purple are service marks of Truist Financial Corporation. Equal Housing Lender. vada.com 25
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