If you run an auto repair shop, you may be leaving a lot of money on the table when it comes to credit card acceptance. Your current processor may have you on a setup that siphons off higher rates and fees, or you may be losing dollars by using outdated credit card terminals. You may also be spending too much time fiddling with balky credit card machines, or talking to the billing department when there are cars in the bay waiting to be fixed.
Independent automotive repair centers often see a lot of debit and credit cards every day. If they haven’t optimized their payment processing account in the last few years, they may be paying a high rate on each card authorization, as well as an excessive “per transaction” fee that gets levied every time a card is swiped. Because mechanics often don’t bother to examine their merchant services agreement periodically, they often end up paying inflated rates. Years ago, when the account was set up, the car service center might have had a minimal transaction history or poor credit that necessitated a higher rate. They may have also settled for an account that overcharged for services. In the meantime, the repair center’s chargeback risk and other rating factors has likely decreased, which calls for a far lower cost of card acceptance.
In the past few years, a wide range of automotive services have discovered that better technology and lower transaction costs can keep them competitive. Credit card processing for mobile auto detailing has gotten cheaper thanks to portable and wireless terminals. By physically swiping a credit card, business can keep an extra 1% of the transaction amount that would have gone to the processor. Auto glass and windshield replacement merchant services have also gotten a lot cheaper with the usage of these terminals. Even where insurance covers the bulk of a repair cost, auto shops may need a credit card to accept deductibles, which can run into the hundreds of dollars.
Another common way for auto maintenance and repair services to save is to accept debit cards with PIN numbers. Some transactions fees can represent several dollars on a big transaction when run as “credit” but can cost less than 50 cents to authorize as a “debit” when PIN verification is used. Automotive painting services, collision repair, and window tinting shops can all see a bigger share of their own money when they take the time to examine their processing setup and add a PIN pad to their current credit card terminals.
At CPN, our account executives have experience in the automotive repair and maintenance field. We are able to use this knowledge to customize a processing setup for your company, and we can also offer advice based on trends we are seeing in the car repair industry. Our goal is to make processing for auto repair shops as inexpensive and painless as possible, so mechanics can spend more time fixing cars.