The Hidden Costs of Generic Payment Processing for Dealerships

What You Don’t See Is Costing You

Your payment processor should make your life easier. But what if it’s quietly bleeding your dealership dry? If you’re using a generic processor, there’s a good chance that’s exactly what’s happening.

Sure, it swipes cards and deposits payments—but at what cost? Between surprise fees, endless reconciliation headaches, and minimal fraud protection, a generic processor can do more harm than good for a business like yours.

Let’s pull back the curtain and talk about the real costs of sticking with the wrong system.

Generic Processors Aren’t Built for Dealerships

Most payment processors are designed for standard retail transactions—not for the complexities of a dealership. And that disconnect shows. Here’s what they don’t tell you upfront:

• You’re overpaying in fees. Those layered “interchange-plus” models make it nearly impossible to predict what you’re actually spending each month. Spoiler alert: it’s usually too much.
• You’re wasting time on reconciliation. Without proper integration with your Dealer Management System (DMS), every payment becomes a puzzle to solve. Who has time for that?
• You’re unprotected from chargebacks. Disputes are bound to happen with high-ticket transactions. But generic systems leave you to fend for yourself, meaning more lost revenue and more headaches for your staff.

When you add it all up, these “hidden costs” can steal thousands—or even millions—of dollars from your bottom line over time.

Why Dealerships Need Something Better

Let’s get real: your dealership is not a corner store. You need a payment processor that understands the unique demands of high-value, high-volume transactions. That’s where automotive-specific payment solutions like the one offered by myKaarma comes in.

Bottom line, they offer that generic systems just can’t match:

• DMS Integration: Payments sync automatically across departments—service, parts, and finance. No more manual entry. No more matching errors. No more wasted time.
• Surcharging Done Right: Pass credit card fees to customers (where legal) while staying 100% compliant. Dual pricing options even make the fees transparent upfront, so there’s no guesswork.
• Fraud and Dispute Management: Tools like 3D Secure help prevent chargebacks and shift liability for fraud away from your dealership.

Switching to an automotive-specific processor doesn’t just solve your problems. It also puts money back in your pocket by reducing fees, cutting down on wasted time, and safeguarding your revenue.

Is It Time to Break Up with Your Processor?

Not sure if your current system is the problem? Here are the signs:

• You’re drowning in reconciliation issues every month.
• Fees feel unpredictable or higher than they should be.
• Chargebacks and disputes are eating into your profits.
• Compliance worries keep you up at night.

If any of these hit home, it’s time to rethink your payment processor.

Want to Learn More?

Your dealership doesn’t have to settle for a processor that drains your resources. There’s a better way—and we’ve outlined it all in myKaarma’s free white paper: “Payments and Your DMS:
Unlocking Profit with the Right Solution.”

This guide breaks down the true costs of generic processors , shows you how to choose the right solution, and shares real-world success stories from dealerships that made the switch.

Don’t let hidden costs eat into your profits. Download the white paper now and take back control of your payments.