Merchant Processing Specialty: Automotive
Typical Problem
Auto dealers are paying higher than necessary processing costs because of their billing plan and tie ins to floor plan financing. These are two scenarios:
- Merchant statements have the headline "Your rate is 1.5%". There is no specific data about what types of cards are used, but you can divide your costs by the total sales to come up with an average (it won't be 1.5%) effective rate.
- Merchant statements have 3-6 'buckets' for fees. These usually include mid-qual credit, non-qual surcharge, and mid-qual debit.
UPDATE 2010: While merchant discounts are much more competitive than in the past, combatting fraud and PCI Compliance are major concerns. CenPOS technology can reduce costs, reduce risk, and improve efficiencies.
Solution
Transparent reporting, wholesale pricing, blocking refunds without a corresponding sale on the same credit card, increasing pin debit penetration.
See also retail: Costs are frequently bundled into 'average buckets' and whenever that happens, the processor is always going to pick a higher average to protect themselves. We offer a completely open solution so customers benefit from every level of interchange rates plus comprehensive reporting. Not all of these charges are avoidable, but with our expertise, we can reduce these to ONLY the transactions that must fall into this downgrade category.