Keep balloon and settlement figures off expensive card rails
Monthly rentals are the easy part. The money that hurts on the wrong rail is the big one-off: the balloon at the end of a PCP, the early settlement figure, the deposit at the start. Those are exactly the payments cards cost most on.
The big payments are where it costs
A balloon payment or an early settlement figure can run to thousands. Take it on a card and the percentage fee is a number that makes the finance manager wince, on a payment the customer is happy to make by bank.
The monthly rental, by contrast, is a steady Direct Debit that mostly looks after itself, until a customer's circumstances change and the fixed amount no longer fits.
And payouts to dealers or customers at drawdown need to be same-day and referenced, so the deal does not stall waiting for money to land.
The payment mix that fits
Not one rail. The two to four that match how money actually moves here.
Take balloons, settlement figures and deposits over a bank link, avoiding percentage card fees on large one-offs.
Collect monthly rentals on a mandate, timed to the customer's income.
Pay dealers and customers at drawdown the same day, correctly referenced.
Your flow of funds, orchestrated
At drawdown, money is paid out over Faster Payments and matched to the agreement. Monthly rentals collect over Direct Debit. When the balloon or an early settlement figure falls due, it is taken over Pay by Bank, so a large one-off does not attract a card fee. Deposits are taken the same way. Rentals, settlements and payouts reconcile on one ledger against the agreement.
Every book moves money differently. We map your flow of funds and quote one integration across the rails that fit.
Related
Payments for auto finance: FAQs
Because they are large one-offs, and a card's percentage fee on a four-figure payment is significant. A bank payment costs a fixed, lower amount and settles instantly with no chargeback.
Over Direct Debit, timed and retried to the customer's real pay date, with a move to commercial VRP available where income becomes irregular.
Yes, over Faster Payments, referenced to the agreement so the money reconciles on arrival and the deal does not stall.
Tell us how you get paid
Send us the mix of payments you take and make, and we will quote one integration across the rails that fit, priced on your volume.