LOUISVILLE, KY -- Truckstop.com is offering its customers an app designed to simplify the load payment process, giving owner-operators and small fleets a secure way to organize and control their payments.
Unveiled at the Mid-America Trucking Show last week, LoadPay also offers brokers a way to generate revenue and streamline their back-office work.
LoadPay offers a simple transparent service for both carriers and brokers. A single financial institution collects, stores and issues payments, all for an 85-cent transaction fee.
This app eliminates the need to call brokers or shippers to follow up on payments, and gives owner-operators/carriers a complete history of their loads and payments.
As part of the agreement with the broker on the load, owner-operators and carriers can choose to forfeit a percentage of their payment in order to get payment earlier. On these loads, they simply can click the “PayMeNow” button and the money will be in their account the next day.
Security is an important feature of the service. As Brent Hutto, chief marketing officer for Truckstop.com, notes, “If Home Depot and Target can get hacked, think about the billions that flow through the freight marketplace.” Yet many brokers may not be providing very tight security for bank/payment information for their carriers.
FarId Zaffar, LoadPay’s general manager, came to the company from Silicon Vally and explains that the integration with the bank is 128-bit encrypted, compared to 64-bit for most other companies. They use ACH payment technology, which is regulated by the Federal Reserve.
LoadPay gives owner-operators and small fleets control over their payments and the ability to adjust cash flow if needed, without having to pay a factoring service. Hutton notes that 45% of Truckstop.com’s owner-operator customers are currently factoring their loads. By using LoadPay, they can get some payments faster by sacrificing a percentage, but unlike a factoring service, they don’t have to give that up on all loads.
For brokers, LoadPay means they have to deal with fewer payment inquiry calls, and streamline back-office work by eliminating checks, ACH deposits, wires and advances to carriers. It also increases security, ending the need to store sensitive banking information. And it provides a source of revenue, because unlike with factoring, when carriers use the “PayMeNow” feature, the broker shares in that percentage fee.