Payment Processing in the Automotive Industry

I spoke with an auto repair shop owner, a dealership owner and a car wash representative to get an insight on the drastic differences of payment needs but found core similarities. With statistically different ticket price points, it’s understandable that all auto businesses won’t have the same financial necessities and payment methods. However; they all said that they would benefit from keeping 100% of their profit.
That is a no brainer, who wouldn’t benefit from not having to pay processing costs and being able to keep all of their hard earned money. Especially in this industry where the ticket price and customer influx is typically unreliable and inconsistent. And 247 Payments has a way to let you keep that 100%, without increasing your ticket price. It’s called our Dual Pricing Program and it works like this: The Dual Pricing Program charges the card holder a surcharge of 2.9% to 3.9% when using a credit card. The merchant then receives a deposit of the gross sale amount minus the surcharge and only pays a flat, monthly fee. This frees you from paying any varied processing costs out of pocket, with a locked in rate. Basically, if a customer pays with cash, they get a “discount” but the discount is just a lack of processing cost, that you charge to those who choose to pay with plastic. 

This program is great for all business models that have a storefront, it keeps your customers happy. Especially in a business model like the car wash. They have very consistent, low tickets, as there are only four wash options to choose from at specific price points and tend to receive cash. However, at this car wash, they struggled with streamlined technology. Their POS systems are out of date, with no tap to pay options and they complained of their systems freezing. Having consistent software is so important. Often customers know how they want to pay before receiving the bill. Having every payment option possible increases the chance of you making the sale! 

The auto shop was the furthest away from typical Tampa traffic. It was not as populated of an area, I assume many of his issues would be subject to change if the location was different. But they told me they struggled with the influx of customers in the area so they had to raise their ticket price for the traffic they do have. While this is not necessarily a payment processing concern, 247 Payments could be their solution. With updating software, comes new opportunities to advertise. Such as QR codes and virtual wallet options. And the Dual Pricing Program, it could be used to give their customers a discount without raising their prices. If they continue to raise the price points for the customers they do have, they may move to another option. 

Lastly, I met with a dealership owner. This was a very successful dealership. Dealerships are considered a high risk business due to their ticket price. Most transactions are over a few thousand dollars, so banks deem them as a high risk business. Unfortunately they have been identified by the international anti-money laundering community as being potentially vulnerable for money laundering. This can cause issues with bank support, if you are not a national, top branded dealership. This location sold used cars. They have wonderful ratings, high success rates, and consistent business- but they have struggled staying in good standing with their banks. 247 Payments specializes in high risk businesses. We offer chargeback mitigation programs that stop issues before they even start, so you are always in good standing with your bank. We reduce questions and transactions are always charged in one amount. 

Our sophisticated back-end payment systems are designed to manage high cost transactions and financing plans while tracking transactions using practical, easy-to-use analytics software. Whether you’re an auto dealer looking for long-term financing plans or an auto shop requiring multiple payments solutions, we have the right solution for you. Give us a try!