What is Quick Pay On Central Dispatch?
Auto shipping brokers can provide a quick payment on loads they post on Central Dispatch. This is known as "quick pay". With quick pay on Central Dispatch a broker provides payment to the car carrier much faster (usually within 2 business days) on an invoice for a small fee, usually under 3% which is paid by the broker.
The use of quick pay on Central Dispatch loads ensures that the load is delivered with payment cleared to the carrier as soon as possible. Carriers will pick up and deliver vehicles that they would normally stay away from invoicing because they prefer C.O.D. (Collect On Delivery). With a regular shipper invoice, the carrier is subject to payment terms that could be much longer.
When Does The Clock Start on Quick Pay?
Balance payment terms begin on "Pickup", "Delivery" or "Upon Receiving a Signed Bill of Lading", which is most common as it shows the delivery was made and signed for by the party receiving the vehicle. Brokers would rather quick pay the carrier after delivery not at pickup. Selecting to send payment only marking the vehicle delivered on Central is simply a click online and does not provide proof of delivery to send the payment.
Is There an Alternative to Quick Pay with Central?
With the advent of Zelle and ACH payments being easier to do online, a quick pay service is not the only option. Zelle provides instantaneous payment with zero fees. ACH can show up as early as the next day but some banks will not have the option to email the recipient. Although the broker can send a screen grab by email. So, the one advantage quick pay on Central has over ACH is that quick pay service will send a confirmation that payment has been made even if it doesn't clear as early as the next day.
Important Note About Quick Pay In General
It's also worth noting that other alternatives to quick pay on Central Dispatch can encompass all these fast payments, as there isn't a selection on the list of payment methods. To date the only options listed are:
- 2 Business Days (Quick Pay)
- 5 Business Days
- 10 Business Days
- 15 Business Days
- 30 Business Days
Brokers wanting to entice carriers to take loads not paying at delivery with Central will select "2 Business Days (Quick Pay)" as it gives them time to clear funds from credit card transactions and just simply send a Zelle payment or ACH right away.