If you own a car dealership, you know the importance of having a reliable and secure payment process. Your customers want to make quick and easy purchases, and having a merchant account is a perfect way. Choosing the right merchant accounts for car dealerships, however, can be a challenge. This guide will help you break down the different types of merchant accounts available and the features they offer, so you can choose the one that best suits the needs of your car dealership.
We’ll examine the pros and cons of each and what you should keep in mind when selecting. With the correct merchant account, you’ll be able to offer your customers a convenient and secure payment experience.
Overview of Merchant Accounts
Regarding credit card processing, auto dealerships have complex requirements. Their high-volume sales environments necessitate dependable point-of-sale alternatives traditionally reserved for major retailers. Still, they also necessitate sophisticated rear payment systems capable of handling complex, high-volume ticket transactions, and financing schemes.
In the competitive auto sales market, sellers must pay particular attention to systems incorporating marketing and client retention capabilities. Finding a system that provides all of these capabilities without significantly reducing a car dealer’s already-thin profit margins can be difficult, but it is feasible.
To make things easier for you, we’ve compiled a list of the finest merchant account providers for auto dealerships. These companies may supply a comprehensive range of point-of-sale hardware and business administration systems to help sales and keep vehicles moving off the lot. More importantly, they have reasonable pricing and have received great feedback from merchants and third-party reviewers.
Best Merchant Accounts for Car Dealerships
CDG Commerce
CDG Commerce, based in Chesapeake, Virginia, is a business account provider that can supply car dealerships with in-person, smartphone, and retail lines of credit processing. A free payment method, virtual terminals, live sales monitoring, fraud control, QuickBooks connection, recurring billing, as well as ACH processing, are among the CDG Commerce products and features.
Since its inception in 1998, CDG Commerce has mainly gotten positive feedback from its merchants. In most circumstances, the company provides month-to-month contracts with no early withdrawal penalties. CDG Commerce received an “A+” rating in our review, as well as the BBB also gave the company an “A+.”
Host Merchant Services
Host Merchant Services is a merchant account provider situated in Newark, Delaware, that is well-suited to most general businesses, including car dealerships. The company’s products and services are point-of-sale remedies, online marketing tools, a digital payment gateway, a virtual terminal, portable card processing, gift and loyalty training programs, personal merchant loans, and offshore vendor accounts. Host Merchant Services focuses on e-commerce firms and offers new merchants who need them a free site and email account.
National Processing
National Processing provides a variety of small company processing alternatives and can help car dealerships select the best POS system or remote terminal for their requirements. The company has two pricing options: an interchange-plus program and a “zero-fee” program, each of which offers low rates.
National Processing does have a spotless record, with only one minor complaint submitted within the last three years. Indeed, National Processing’s extensive payment choices suit a fast-paced company like a car dealer.
Factors to Consider When Choosing a Merchant Account
Risk
Your business type will determine what kind of merchant account you qualify for. If you sell high-ticket items like cars, you’ll most likely be approved for an open-ended account. You might be approved for a tiered account if you sell lower-ticket items like groceries. There are also tiered accounts available specifically for car dealerships.
Processing Volume
The more you process, the more you’ll save on interchange. Ideally, you should process at least $1 million per year with a traditional account, $100,000 with a tiered account, or $50,000 with a revolving account.
Customer Experience
Your customers want a quick and easy transaction, so choose an account accommodating a high sales volume. You should also consider whether the account offers payment processing features, such as mobile payments or gift cards.
Security and Compliance Requirements
One of the most important considerations when choosing a merchant account is secure and safe. If you accept credit card payments online or in person, you must comply with the Payment Card Industry Data Security Standard (PCI-DSS).
This security standard ensures that your business complies with the rules set by credit card companies and protects customers’ private information. The measure includes several requirements, including firewalls, encrypting data, and conducting regular audits. Meeting these requirements can be difficult, especially for smaller businesses.
That’s why you must carefully consider each merchant account’s security requirements. Certain account types, such as traditional accounts, don’t impose compliance requirements, while others, such as revolving accounts, have strict rules.
The Benefits of Having a Merchant Account
A merchant account allows you to expand your business by accepting credit and debit cards. This can boost your sales and help you attract new customers who prefer to use their cards for purchases.
Customers also appreciate the ease and convenience of electronic payments, especially when writing a check. Having a merchant account also allows you to charge higher prices. This can come in handy if you’re trying to profit from a fixed-price item or want to offer a premium service. Having a merchant account can also help you save money.
This is because you’ll no longer have to pay for each transaction with cash. Instead, you can accept payments directly from customers’ credit or debit card accounts without exchanging money. This can help you reduce operating costs and make more efficient use of your funds.
How to Get Started With Your Merchant Account
Before you sign up for a merchant account, it’s essential to do your research. Compare different account types, look at their funding requirements, and find out what kind of service they offer. You should also ensure the account is a good fit for your business.
For example, if you sell high-ticket items like cars, you should be approved for an open-ended account. You might be approved for a tiered account if you sell lower-ticket items like groceries. There are also tiered accounts available specifically for car dealerships. Once you’ve found an account you like, you’ll need to fill out an application.
This application will ask you to provide information about your business, such as its tax ID number and annual sales. You may also need to submit copies of your financial statements. Once the application is approved, you’ll be asked to make a down payment. This money will be used to fund your account and can be used to purchase equipment and services.
Conclusion
Choosing the proper merchant account for your car dealership can help you boost sales and efficiently use your funds. This can come in handy if you’re trying to profit from a fixed-price item or offer a premium service. Having a merchant account can also help you expand your business.
With the ability to accept credit and debit card payments, you can attract new customers who prefer to use their cards for purchases. Having a merchant account can also help you save money. Instead of accepting payments from customers with cash, you can accept payments directly from their credit or debit card accounts without having to exchange any money.
