At 360 Payments, we work with hundreds of auto repair shops all across the country. As we visit new shops and meet their owners, we’ve noticed some troubling trends in the way the auto repair industry accepts credit cards. Specifically, we’ve noticed that shop owners are often focusing on the wrong metrics as they try to determine whether or not they’re getting a good deal. In this post we’ll explain our top three tips to help you choose the best credit card processor for an auto repair shop.
1. It’s Not Always About the Money
We see so many shop owners so focused on getting the lowest rate that they don’t see what they’re giving up to get it. Sure, having a low rate is great – you should never work with a credit card processor who you feel is overcharging you – but there is much more to consider. First and foremost, what kind of service are you getting? If your terminal goes on the fritz at the end of the day when dozens of people are trying to pick up their cars, will anyone answer the phone when you call? Will they be able to get you up and running again or will you be transferred in a seemingly endless loop as the line grows ever longer? Be willing to pay a few extra dollars for peace of mind. You never know when you’ll need it, but when you do you’ll be glad you have it.
2. Make Sure You’re Protected
Another tip when you’re shopping for the best credit card processor for an auto repair shop is to ask detailed questions about fraud protection and chargeback support. Scammers are getting more sophisticated every day, and you need a processor on your side who’s going to help you sort everything out if you are a victim. Chargebacks can also really set you back, even if you lose only one or two. Once a chargeback is filed a clock starts ticking. You must respond within the timeframe specified in the notice or lose the chargeback outright! Look for a processor who is willing and able to help you gather the correct documentation, organize it properly, and meet the deadline. If your processor isn’t able to help you with this, it’s not worth saving a few dollars on your monthly processing statement. You’ll lose hundreds of dollars in lost chargebacks if you do.
3. Pay Attention to the Right Pricing Metrics
Too often we see auto shop owners zeroing in on the transaction fee and trying to get that number to be as low as possible. While you certainly do want a low transaction fee, you should pay more attention to the percentage fees. Check your statement to make sure you’re on interchange plus pricing, and reach out to your processor if you’re not sure. Whatever you do, don’t sign up for tiered pricing. This type of processing is not advantageous for auto repair shops where most tickets are $100 or more. Interchange plus pricing means the true costs of processing are passed on to you, plus a small markup that your processing keeps. It’s the clearest and most transparent form of pricing out there.
Find a Processor Who Does All Three
If you’re trying to choose the best credit card processor for an auto repair shop, we’d love for you to consider 360 Payments. We have outstanding customer service, expert help for chargebacks and fraud concerns, and excellent pricing. Give us a call at 1-855-360-0360 or drop us a line on our website. We’d love to show you what sets us apart from other processors.
PS – If your business doesn’t accept credit cards yet, here’s why you should change that today.
PPS – Does your business process recurring payments? If not, you need to read this.