Auto repair costs, on average, add up to about $652 per year. For auto shops using traditional credit card processors, the burden of transaction fees is notably higher. If your merchant services provider takes a percentage of your sales (which is likely), you're losing a substantial portion of your earnings due to these credit card processing costs.
Instead of adding an additional cost on top of interchange rates, we simplify the process by charging a flat membership fee for your credit card processing needs. Whether you're charging $30 for an oil change or quoting hundreds for more extensive auto repairs, Auto Service Processing ensures that your profits remain untouched by processing fees.
TTAA members enjoy special benefits not available to non-members. For a short list of benefits available to you, go here.
See how credit card processors make their money
5 things you can do today to save on your processing fees (even if you don't use us).
1. Negotiate a Lower Rate
Most of the time, your provider will review your current rates and try to lower them if you ask. If they refuse to do it, you should find another provider. It is not always possible to get your rates lowered, but a company that will not even do a rate review is bad news.
Here is a tactic for negotiating that will send chills down the spine of your provider:
Don’t ask what your current rate is, ask them what their markup over interchange is, and then tell them you want to negotiate a lower markup.
2. Don’t Lease Equipment
Most basic credit card terminals cost between $150-$300. If you sign a 36-month lease at $25 per month, you are paying for that terminal many times over. Just imagine how much you are giving away if your payment is $45 per month. Equipment leasing of a base terminal is a license to steal and it's your money they are stealing.
3. Insert the Chip Whenever Possible
Tire dealers and auto service centers are notorious for keying in the card information for regular customers to save them a trip to the store. It may be good customer service, but it is costing you higher fees, and it is also one of the big taboos in PCI compliance. Because that card was not present when you ran the transaction, it is considered a higher risk transaction and has higher fees associated with it. Depending on your provider, you may be paying as much as 2% extra for that one transaction just because you manually entered the card information.
4. Stay Away from the Bank
Banks provide merchant services. Yes, this is true but all but a few very large banks sign their customers with a private merchant service provider and then mark up the fees so they can also make money on your business. You are basically paying extra for a middle person. Many banks that do provide their own merchant accounts have much higher fees when compared to merchant service providers. They often have higher equipment prices and will almost always try and push or force equipment leases on their customers. Let your bank handle your checking account, but keep your merchant account separate.
5. Don’t Be Afraid to Change Providers
Whether you’re fed up with your current credit card processing company or are just shopping around for another option, changing plans may be your best option to get lower fees. Sadly, there are tire dealers and auto service providers who put up with higher fees and sub-par service simply because finding the right alternative is time-consuming, and they’re at least complacently accustomed to the current program and interface.
For anyone interested in starting up with a new merchant account, there are reasonable options available. You can find the prices you deserve without sacrificing security or customer service. Changing from one service to another may be a bit uncomfortable at first, but it can be ultimately worth it if you do your homework. The best credit card processing companies have an easy application and are simple to integrate so you won’t miss a beat during the transition.
Additionally, you want to make sure that they have customer service representatives available, even after hours. After all, there is nothing worse than a terminal not working and no help available when you have a customer standing in front of you at the counter.
If a company makes you feel uneasy or you feel like they aren’t being honest with you, you should trust your instinct. Shop around. There are hundreds of providers out there, so if a company brings up questions, find someone else. If your current company can’t or won’t give you their mark-up, kick them to the curb and find someone who will.
The bottom line is:
Don’t be shy. If you haven’t checked rates within the last year, do it now. Demand the things we’ve just covered above and don’t waiver. It’s time you took control.
Of course, we would be proud to have you as our next happy customer.
Let us show you how much you could save.
We can give you a head-to-head comparison. We'll look at your last processing statement and show you how much you would have saved by using Auto Servive Processing.