National Auto Care Corp. (NAC), an Ohio-based vehicle service agreement provider, says it has significantly improved its claims processing operations in less than a month by using J.P. Morgan’s Single-Use Accounts technology to help manage one-time electronic payments for automotive repair orders.
National Auto Care has leveraged J.P. Morgan’s automated credit card payments system to help reduce the number of paper checks issued, cut warranty claim processing time in half, improve risk mitigation and increase its electronic payments base from approximately 60 percent to 80 percent of all claims processed, the company states.
Single-Use Accounts are an electronic accounts payable tool that provides customers with the flexibility of a purchase card while delivering powerful security, antifraud and reconciliation features.
National Auto Care is using J.P. Morgan’s Single-Use Accounts technology to help process more than 4,000 monthly claims valued at approximately $2 million.
The technology automatically assigns a unique credit card number when a car dealer or repair facility requests approval for repairs covered under NAC’s vehicle service agreements. Usage parameters are assigned automatically to each credit card number based on the service order, such as the name of payment recipient, the exact dollar amount available and the type of repair that is approved.
Once repairs are completed and the credit card number is used, the claim is automatically paid if the service center name, dollar amount and repair type match. NAC is alerted and the payment is held should these parameters not be met.
“Our success hinges on our ability to quickly and accurately pay our customers’ claims,” says William Speaks, CEO, National Auto Care Corp. “With J.P. Morgan’s Single-Use Accounts technology, National has further increased the speed at which we pay our customers, while helping to reduce the number of paper checks being issued. Customers can be paid today for work that was completed this morning. Not many businesses in any industry can achieve those results.”
Other benefits seen by National Auto Care include:
- By streamlining the payments process, NAC has been able to maximize its staffing resources. While more claims are being processed each day, NAC has not had to hire additional staff to handle the increased payment output. NAC pays hundreds of claims each business day.
- Automated reporting and reconciliation of pre-purchase information to actual transaction data without manual data entry.
- Due to strictly enforced credit limits on each card, NAC no longer has to spend time calling repair facilities to get reimbursed for credit card overcharges.
- Reduced Accounts Payable costs by replacing paper-based process and integrating with existing ERP systems.
- Robust fraud and security controls of ACH with the flexibility of traditional purchasing cards.
“As unique credit card numbers are assigned to each approved transaction, customers like NAC are finding increased control and streamlined reconciliation as a result of the payment-to-invoice one-to-one relationship,” says Eduardo Vergara, global commercial card executive, J.P. Morgan. “In addition, our technology can be implemented quickly with existing business systems, freeing companies from having to further invest in new financial management tools.”
For more information, visit www.jpmorgan.com/ts.
