When it comes to credit card payment processing, it’s not uncommon for dealerships to encounter challenges that can affect their business. In the automotive industry, transactions can vary significantly in size, from minor sales to major purchases, which can lead to issues with processing fees. Some providers impose higher percentages on larger transactions, impacting the dealership’s profitability or necessitating higher costs for customers in a highly competitive market.
Understanding Dealers’ Payment Processing Challenges
Efficiency and reliability in payment processing are essential for dealerships. Delays or technical glitches can disrupt operations and affect customer satisfaction. If payment terminals and point-of-sale (POS) systems aren’t tailored to the specific needs of dealerships, it can result in costly disruptions and potential lost business opportunities.
Ten Common Pain Points in Dealership Payment Processing
Let’s delve into ten common pain points that dealerships face with their payment processing services:
- High Processing Fees: Many merchant services providers levy significant processing fees for credit card transactions, particularly on larger sales.
- Delayed Settlement Times: Prolonged settlement times can create cash flow challenges, with providers taking days or even a week to deposit funds from credit card transactions.
- Equipment and Technology Issues: Reliable payment terminals and POS systems are paramount for smooth transactions. Frequent malfunctions can disrupt business operations and negatively impact the customer experience.
- Lack of Industry-Specific Features: Some providers overlook offering features tailored to dealerships’ needs, such as invoice management, flexible payment options, or seamless integration with existing management software.
- Inadequate Customer Support: Prompt and efficient customer support is crucial for resolving payment-related issues quickly. Frustration arises when providers lack responsive support or fail to address concerns promptly.
- Security Concerns: Dealerships handle sensitive customer data. Inadequate security measures can expose them to data breaches and erode customer trust.
- Hidden Costs: Some providers may conceal additional costs, such as monthly fees or PCI compliance charges, impacting the dealership’s bottom line.
- Limited Payment Options: A dearth of diverse payment options can deter potential customers and restrict revenue streams.
- Compliance Challenges: Dealerships must adhere to industry regulations. Non-compliance can lead to legal issues and fines.
- Inefficient Reporting: Inadequate reporting tools make it challenging for dealerships to track and analyze payment data for valuable business insights.
These challenges emphasize the importance of selecting a provider that offers competitive rates, reliable technology, industry-specific features, robust security, and responsive customer support to cater to the distinct requirements of independent and franchise dealerships.
Meet Peri by Solera: Revolutionizing Payment Processing
Solera’s all-new Peri payment processing service is designed to help automotive companies save money on every credit or debit card transaction. Peri empowers dealerships to swiftly adopt or enhance their payment options with lower fees, enhancing their competitiveness in today’s market.
With Peri, dealership owners gain access to reliable customer support, ensuring that any technical issues related to accepting payments online are promptly resolved. This guarantees no delays in getting paid by customers, providing peace of mind to dealership owners.
Discover how Peri merchant services can revolutionize your dealership’s payment processing experience, boost your competitiveness in the industry, and address these pain points head-on.
Learn more about Peri by Solera today.