Surcharging Simplified: Stop Letting Credit Card Fees Drain Your Dealership’s Profits

Are You Paying to Get Paid?

Every time a customer swipes a credit card in your dealership, you might be losing money. Those “invisible” credit card fees can stack up to thousands—or even hundreds of thousands—of dollars each year. For dealerships balancing high-ticket transactions and the growing demands of credit-happy customers, these fees aren’t just an annoyance. They’re a real threat to your bottom line.

But here’s the good news: You don’t have to just take it. Surcharging—a practice that passes credit card fees to the customer—helps dealerships like yours control those costs. And done right, you don’t need to jeopardize compliance or customer satisfaction.

Credit Card Fees: The Profit Killer Nobody Talks About

Let’s face it—credit card companies make a killing off each transaction. For every sale, they’re taking a cut, and when your sales involve high-ticket repairs or parts, those fees hurt even more.

Now, multiply that across your entire month of transactions. How much are you handing over just to get paid? It’s likely more than you think. While customers rack up reward points, dealerships are stuck footing the bill.

If your dealership isn’t surcharging (where it is legal to do so), you’re missing out on a chance to keep more of your hard-earned revenue.

Surcharging: The Cost-Cutting Secret You Need

At its core, surcharging means adding a small fee to credit card payments to offset the processing costs. It’s a win-win: You eliminate credit card expenses while still offering customers the convenience they expect. But here’s where things get tricky:

• Not all transactions are surcharge-friendly. Debit cards, for example, are usually off-limits.
• State laws are a maze. In states like California and New York, compliance is a must, with strict rules about how and when you can apply surcharges.
• Customers hate surprises. If they don’t see those fees coming, it could leave your reputation could take a hit.

The result? Many dealerships avoid surcharging altogether—or worse, try a DIY (do-it-yourself) solution and end up non-compliant or losing customers.

How Automotive-Specific Payment Processors Make It Easy

This is where an automotive-specific payment processor becomes a game-changer. They’re specifically designed to handle surcharging the right way—compliantly and transparently. Here’s how they take the stress out of the equation:

• Automated Compliance: The right payment processor should know the rules so you don’t have to. These systems ensure fees are only applied to eligible credit transactions and keep you compliant with state-specific laws.
• Dual Pricing: The right payment processor can show customers both cash and credit prices upfront. No surprises = happy customers.
• Seamless Integration: Whether online, through mobile payments, or at the service counter, the right payment processor ensures the same surcharging standards apply in every instance.

With tools like these, you’re not just saving money—you’re also improving customer trust and simplifying your team’s workload.

Are You Ready to Stop Losing Money?

Credit card fees don’t have to be a silent profit killer. By embracing surcharging with the right tools, your dealership can save thousands without breaking a sweat.

Want to know how to do it right? Download our free white paper: “Payments and Your DMS:
Unlocking Profit with the Right Solution” It’s packed with everything you need to know to start saving—compliantly and confidently.

Don’t let another month of fees drain your profits. Click here to grab your guide now!