Efficiency and customer satisfaction are critical in the automotive dealership industry. Morgan Auto Group, a network of 76 dealerships, faced a significant challenge in managing payment surcharges, which consumed valuable time and resources. Seeking a solution, they turned to myKaarma's Payment Surcharging solution, a decision that has since revolutionized their operations.
Morgan Auto Group initially used a different provider for their surcharging needs. The process was cumbersome, requiring manual calculations and reconciliation across multiple websites. Jared Perkins, Controller at Toyota of Tampa Bay, a Morgan Auto Group dealership, vividly recalls the ordeal: "It was wildly inconvenient. Our store assistant spent the majority of her day just going through statements from three different websites."
The inefficiency of the previous system became a bottleneck, prompting Morgan Auto Group to seek a more streamlined and user-friendly solution. Enter myKaarma.
From the moment Morgan Auto Group implemented myKaarma's Payment Surcharging Product, the benefits were evident. The transition was seamless, and the new system quickly proved its worth. Jared highlights the ease of integration: "Since then, it's been very convenient that we're able to just do everything right in the deposit." The deposit matches exactly what their business expects and aligns with their DMS Reynolds & Reynolds and myKaarma system, eliminating the need to chase down invoices to match what is deposited in their bank.
1. Eliminating Credit Card Processing Fees
One of the standout benefits of myKaarma’s solution is its ability to eliminate credit card processing fees. This immediate cost-saving measure allows dealerships to reinvest savings into other areas of their business. "It's much easier to track everything and see exactly how much we're saving," Jared noted.
myKaarma’s user-friendly interface significantly reduces the time spent on daily tasks. Store assistants, who previously spent an entire day reconciling payments, now complete the task in just two hours. "We got them down from all day to two hours," Jared shared.
The myKaarma system automatically applies surcharges on credit card transactions, managing signage, receipts, and customer notifications through modern terminals. Customers have the option of paying in-person or online with Apple Pay or Google Pay, with surcharges applied automatically. Additionally, flexible payment options like Buy Now, Pay Later providers are available to further enhance the customer experience.
Compliance with state regulations and reducing fraudulent disputes are critical in payment processing. myKaarma ensures compliance and offers 3D Secure Fraud Liability Shift, requiring two-factor authentication for online payments. This shifts the liability of fraudulent disputes away from the dealership to the customer and their bank. Jared highlighted the impact, saying, "We've seen a pretty large drop in the amount of chargebacks we get. I would say at least 50%."
myKaarma seamlessly integrates with all major DMS providers, eliminating duplicate entries and reducing errors. Automated reporting ensures the back office can close and reconcile faster, with CSV reports sent automatically every evening. "The statements are very clear and concise. Much better than our previous provider," Jared noted.
Customer satisfaction is crucial in the automotive industry, and myKaarma's solution delivers. The text-to-pay feature provides transparency, allowing customers to review charges before making payments, leading to fewer disputes and chargebacks.
The financial clarity provided by myKaarma’s daily email statements has also helped Morgan Auto Group reduce costs. Jared added, "We were able to back down some of our month-to-month expenses."
The success of myKaarma’s Payment Surcharging Product at Toyota of Tampa Bay didn’t go unnoticed. Jared has been advocating for the solution within the dealership network. "I've been trying to pass it on to everybody in our dealer group.”
The transformation at Morgan Auto Group is a testament to the value of myKaarma's Payment Surcharging Product. By streamlining operations, reducing manual workloads, enhancing compliance, and improving customer communication, myKaarma has become an indispensable part of their operations.
For automotive dealerships looking to boost efficiency, eliminate credit card processing fees, and enhance customer satisfaction, myKaarma’s Payment Surcharging Product offers a proven solution. The success story of Morgan Auto Group serves as a compelling example of how embracing innovative technology can lead to significant operational improvements and customer benefits.