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Yahoo
26-06-2025
- Automotive
- Yahoo
Why used-car dealer Carvana is pushing real-time billing
Businesses, financial institutions and even consumers have been more willing to adopt real-time payments as more uses become apparent. But one subset of instant processing, Request for Payment, has been slower to gain traction. Data company Plaid is anticipating that will change by launching its own RfP product, which is powered by Cross River Bank. "A big missing piece in [real-time payments] has been pay ins, where consumers – but also businesses – want to pay for goods and services," Brian Dammier, head of payments and financial management products at Plaid, told American Banker. "It's an early ecosystem." RfP enables businesses to request payments from a consumer or other business. The payee receives an RfP notification about the request from a bank or third party app., Upon the payee's approval, a payment is sent back to the merchant and is instantly available. RfP can run on both FedNow and The Clearing House's Real-time Payments network. And like other real-time payments, RfP transactions are irrevocable. Consumers' financial institutions need to have RfP enabled on their end, Dammier said. "Part of the solution is, we know which banks have and haven't [enabled RfP]. We are able to then guide Carvana and the customer via API to either offer [the RfP] solution or to fall back to a traditional ACH payment." One of Plaid's first adopters of the payments tech is used-car e-commerce retailer Carvana, a high-flying challenger to the traditional franchised auto dealership model that sells used cars online and delivers them to consumers. Carvana is using Plaid's Request for Payment (RfP) to allow customers to make a downpayment on their vehicle. The solution is embedded on Carvana's website, and Plaid manages the bank account connection, the risk and fraud assessments and the money movement between the customers' account and Carvana. Carvana, for its part, is looking to further reduce friction in the car buying process while at the same time avoiding high fees associated with credit card transactions that are far and away the most popular form of payment for ecommerce transactions thanks to its risk controls and instant settlement capabilities. To that end, RfP is a "particularly interesting product" for the car seller, said Matt Dundas, VP of finance at Carvana. "The biggest drawback of cards is that they're relatively expensive to process. You may be looking at multiple points of revenue that's going to processing fees," Dundas told American Banker. "If you drill into our part of the economy – automotive retail – the dollars are very large in terms of transaction size, and the margin as a percentage is not terribly high compared to other parts of the economy." Carvana has been leveraging the ACH rails to process those high-value transactions since its launch in 2013."ACH was our only payment method, and it remains our dominant payment method in terms of dollars processed," he said. But ACH comes with its own challenges. "It's sort of like a digital paper check, and the processing and settlement is obviously very long, so we've had to adapt our business to deal with all the risks and headaches and friction that comes with ACH rails," Dundas said. Namely, Carvana has to wait for the transaction to clear before delivering the vehicle, a process that can sometimes take days. That's at odds with one of Carvana's business propositions: same day delivery, which it offers in select markets across 15 states, including California, Florida and Texas – the three largest U.S. markets for auto sales. "This payment rail is instant and it has a lot of the positive properties of card payments, without the significant cost of card payments," Dundas said. Consumer adoption for RfP has largely been limited to utility bill payments or other transactions that consumers make on a regular basis, such as subscription payments. It's also most commonly seen in peer-to-peer payment apps, where one user can request a payment from another user. Financial institutions have also been slow to adopt RfP, said Adam Goller, chief fintech officer at Cross River Bank. One reason is due to costly technical integrations. "Folks will definitely want to know that the cost is worth it. So if the use case that they're focused on is not being supported, they won't do it," Goller told American Banker. Another reason is transaction monitoring requirements. "Regulators want to know that you have controls that you can properly monitor activity," he said. That's not to say banks haven't adopted RfP for other use cases. U.S. Bank, for example, has implemented RfP for its clients to fund their brokerage accounts and has seen great adoption for that use case, Elavon CEO Jamie Walker said during The Clearing House's Annual Conference last November. "Once they use it once, they will continually use it just because, obviously, funds are available right away," he said. Other use-cases real-time payments tech have been picking up steam, especially with high value transactions, said Rusiru Gunasena, SVP and head of partnerships at The Clearing House. "Request for Payment is taking off," Gunasena told American Banker. "That's going to revolutionize the bill pay payment space… for the credit card, for the mortgage payment. The auto loan is a good use case where the customer can walk off the lot with a car-buying experience, because you can now fund the loan in real time." Proponents of RfP say that it reduces the risk of fraud because the sender authorizes the payment to the recipient. But that doesn't mean there still isn't room for scams, said Daniela Hawkins, a partner at Capco. "There's a lot of fraud in that space," Hawkins told American Banker. "As an example, almost monthly, I get an email that looks like PayPal with a request for payment… In some cases, it's so sophisticated it's showing up in PayPal [account] as a request to pay." That risk of scams makes people wary to give out their checking and routing numbers. "Once those numbers are compromised, it's hard to put the toothpaste back in the tube," Hawkins said. Plaid maintains that its flow doesn't share the same risk because it doesn't require customers to manually enter or share account information – a feature that it hopes will increase consumer adoption of the service. Instead, it uses Plaid Link, a user interface component that allows users to securely connect their bank accounts to apps and services, a company spokesperson confirmed with American Banker "This approach avoids the risks associated with manually sharing account and routing numbers and adds layers of security through encrypted connections, account ownership verification, and eligibility checks," the spokesperson said. " In effect, Plaid's role here does tokenize and abstract sensitive information." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-06-2025
- Business
- Yahoo
Upgrade review (2025): A leading fintech that offers high yields and few fees
Summary: Upgrade is a financial technology company offering various financial products, including personal loans, checking and savings accounts, and debit cards. It partners with Cross River Bank to offer FDIC- or NCUA-insured checking and savings accounts. Both account types are eligible to earn interest, with yields near the high end of what is offers several banking products that emphasize high yields, low rates, and an entirely online banking experience. While you can't visit a branch or deposit cash, those who prioritize convenience and getting the most out of their money may appreciate what Upgrade has to offer. Upgrade's Rewards Checking Plus account is packed with benefits and perks. These include up to 2% cash back on purchases from convenience stores, drugstores, gas stations, restaurants, and subscriptions. You can also earn a high yield on account balances and cash back on debit card purchases. There are no monthly or overdraft fees, and you can get paid up to two days early with direct deposit. There is one major caveat to these benefits: You must receive at least $1,000 in monthly direct deposits into the account to be eligible. If you don't meet this requirement, you'll miss out on benefits like 2% cash back. If you want to open a joint checking account, it's possible to do that with the Rewards Checking Account during the application process. The Premier Savings account is a high-yield savings account that pays a highly competitive interest rate on balances of $1,000 or more. There are no monthly maintenance fees, and the account is FDIC-insured up to $1 million through participating institutions. You can fund the Premier Savings account with an ACH or wire transfer in U.S. dollars. If your employer offers direct deposit, you can also fund your account through this method. Similar to the checking account, you can choose to open a joint savings account during the application process. Upgrade offers fixed-rate, unsecured installment loans ranging from $1,000 to $50,000 with terms of 24 to 84 months. Personal loan APRs range from 7.99% to 35.99%, and origination fees range from 1.85% to 9.99%. Funds are typically available within one business day after approval. Upgrade offers several credit cards, including multiple rewards cards. A credit monitoring and insights dashboard is built into the Upgrade mobile app, allowing you to track your credit score, analyze spending habits, and stay informed and proactive about your credit health. Many of Upgrade's basic account features are fee-free. However, fees may apply in certain cases. Here's a look at the fees Upgrade charges banking customers. Consider these pros and cons before becoming an Upgrade customer: Pros High yields on bank accounts: The Rewards Checking Plus account offers 0.42% APY, and the Premier Savings account offers 4.02% APY. Both rates are well above industry averages. No monthly fees: The checking and savings accounts don't have monthly fees, regardless of your account balance. Checking account earns cash back: Upgrade's checking account is a rewards checking account and is eligible to earn cash back when certain requirements are met. Cons No branch locations: Since Upgrade is an online-only financial institution, you must do all your banking online. This may be a drawback for those who prefer in-person assistance. No cash deposits: Mobile check deposit is available, but there is no option to deposit cash. Read more: How to deposit cash at an online bank While no in-person support is available, there are various ways to contact Upgrade. As with many online banks today, the first option is an online chat, which is available 24/7. You can also send an email to support@ Phone support is available Monday through Friday from 5 a.m. to 7 p.m. PT. On Saturday and Sunday, support is available from 6 a.m. to 5 p.m. PT. The contact number is 844-319-3909. The Upgrade app generally receives high ratings. The Android app is rated 4.5 out of 5 stars, while the Apple app is rated 4.9 out of 5 stars. The app offers several helpful features, including the ability to manage your checking and savings accounts in one place, set up autopay, and receive alerts. You can also monitor your credit score and make payments from the app. For general correspondence, you can send mail to the following address: 275 Battery Street, 23rd Floor San Francisco, CA 94111 Phone support is available by calling 844-319-3909. Upgrade is not a bank itself and does not carry FDIC insurance directly. Instead, it partners with FDIC‑insured banks — particularly Cross River Bank — to offer FDIC-insured bank accounts. You can find your routing number by logging in to your account and clicking 'Show Details' under your account balance. For Cross River Bank, the routing number is 021214891. Yes, Upgrade is a legitimate financial technology company based in San Francisco, California. Upgrade is not a bank. However, it works with partner banks, such as Cross River Bank and Blue Ridge Bank, to offer deposit services. Upgrade was founded in 2017 and has extended billions of dollars of credit to its customers since its founding.

Yahoo
13-03-2025
- Business
- Yahoo
AG files lawsuit against ABQ company accused of defrauding hundreds
Mar. 12—New Mexico Attorney General Raúl Torrez on Tuesday filed a lawsuit against an Albuquerque contractor, accusing the firm of defrauding hundreds of customers by taking money for home remodeling work that was never completed. The attorney general accused Flawless Results LLC and its three listed operators — John Steven Georges Sr., Robert Dean "Bobby" Murphy Jr. and Jacob Chalmer Tryon, as well as a New Jersey-based bank — of defrauding customers of more than $700,000, according to the complaint filed in 2nd Judicial District Court. "Flawless Results took money from hardworking New Mexico families with promises of service that were never fulfilled," Torrez said in a news release. "This lawsuit is about more than just accountability — it's about ensuring that deceptive business practices are addressed and that every consumer who was misled receives the justice they deserve." The attorney general is asking a judge to permanently ban Flawless Results from operating in New Mexico, void contracts and require full refunds to affected consumers, hold Cross River Bank accountable for issuing loans without proper legal disclosures and impose civil penalties of up to $5,000 per violation. A news release also asked anyone affected by the situation to contact the state Department of Justice. Flawless Results did not respond to the Journal's inquiries, and no attorney was listed for the firm or the defendants in court filings. New Mexico secretary of state records indicate that Georges formed Flawless Results in December 2021. The company operated out of New Mexico with locations in Colorado Springs, Colorado, and El Paso, Texas. The lawsuit alleges Flawless Results collected large down payments from consumers and failed to complete the work they paid for. When customers couldn't afford the large down payments, the company would pressure them into taking out loans with New Jersey-based Cross River Bank. According to the lawsuit, Cross River Bank lacked required consumer protection disclosures, which is considered a best practice. In one example outlined in the lawsuit, Flawless Results agreed to replace a customer's siding and window and door trim in their home. The consumer paid Flawless Results more than $15,000 to start the work. "Flawless began removing the consumer's siding at the end of October 2024 and twelve days later stopped work and stopped all communication with the consumer," the lawsuit said. That same month, according to the complaint, Flawless Results fired its employees, closed its storefronts and stopped answering calls. "Consumers with pending contracts with Flawless were given no warning and no refunds of their down payments," the lawsuit said. Other lawsuits filed in 2nd Judicial District Court, all from customers in 2024, allege that Flawless Results agreed to do work on their homes but never did. One of the claims totaled over $31,000, but most were in the $10,000 to $14,000 range. Colorado court records indicate that a supplier is suing Flawless Results for over $100,000.
Yahoo
11-03-2025
- Business
- Yahoo
NM attorney general alleges business defrauded hundreds of residents
EL PASO, Texas (KTSM) — New Mexico Attorney General Raúl Torrez announced a lawsuit Tuesday, March 11, against an Albuquerque company and its owners, alleging that they defrauded hundreds of New Mexico consumers across the state for home remodeling work that was never completed. The lawsuit, filed in the Second Judicial District Court, alleges that Flawless Results LLC and its owners violated the New Mexico Unfair Practices Act and seeks restitution for affected consumers. The AG's Office says the business shut down in 2024, without issuing refunds, leaving customers with over $700,000 in losses. The NM Attorney General's Office says the company did work in Las Cruces, Albuquerque, Rio Rancho, Santa Fe and Roswell. Flawless Results LLC, operated by John Steven Georges Sr., Robert Dean 'Bobby' Murphy Jr., and Jacob Chalmer Tryon, allegedly misled consumers by promising home improvement services, arranging financing through Cross River Bank, and then failing to complete the work — leaving customers with substantial financial losses, NM Attorney General's Office said in a news release. According to complaints received by the New Mexico Department of Justice (NMDOJ), consumers were often forced into financing agreements, only to be left with unfinished or faulty work while still owing loan payments, the AG's Office said. 'Flawless Results took money from hardworking New Mexico families with promises of service that were never fulfilled,' Torrez said. 'This lawsuit is about more than just accountability — it's about ensuring that deceptive business practices are addressed and that every consumer who was misled receives the justice they deserve.' The lawsuit alleges that Flawless Results: Collected large down payments from consumers but failed to complete the contracted work. Pressured consumers into financing agreements with Cross River Bank, which lacked required consumer protection disclosures. Shut down operations in late 2024 without issuing refunds, leaving customers with over $700,000 in losses. The NMDOJ is seeking a court order to: Permanently ban the defendants from operating contracting businesses in New Mexico. Void contracts and require full refunds to affected consumers. Hold Cross River Bank accountable for issuing loans without proper legal disclosures. Impose civil penalties of up to $5,000 per violation. Consumers who believe they have been affected by Flawless Results LLC are encouraged to contact the NMDOJ Consumer Protection Bureau by clicking here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.