The vehicle service agreement provider National Auto Care Corp. is using single-use account technology from JPMorgan Chase & Co. to make payments to car dealerships and repair shops.
JPMorgan Chase said Thursday that National Auto Care has improved its claims processing and reduced risk since it began using the electronic payment system this month.
The single-use account tool assigns dealers and repair shops a unique card number attached to a single transaction. Payment to those facilities will go through only if the merchant's name, dollar amount, and repair type match what was set up when the single-use number was issued.
The account otherwise behaves like a typical purchase card, JPMorgan Chase said.
"Our success hinges on our ability to quickly and accurately pay our customers' claims," William Speaks, National Auto Care's chief executive officer, said in a JPMorgan Chase press release. The single-use account tool "has further increased the speed at which we pay our customers, while helping to reduce the number of paper checks being issued."