Dealerships often face significant challenges when it comes to credit card payment processing. In the automotive industry, transactions can vary greatly in size, from minor sales to major purchases, leading to issues with processing fees. Some providers charge higher percentages for larger transactions, affecting the dealership’s profitability or necessitating higher costs for customers in a fiercely competitive market.
Understanding Dealers’ Payment Processing Challenges
Efficiency and reliability in payment processing are pivotal for dealerships. Delays or technical glitches can disrupt operations and impact 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 explore ten common pain points that independent and franchise dealerships encounter with their payment processing services:
- High Processing Fees: Many merchant services providers impose substantial processing fees for credit card transactions, particularly on larger sales.
- Lengthy Settlement Times: Delayed settlement times can pose 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 pivotal for smooth transactions. Frequent malfunctions can disrupt business operations and negatively affect the customer experience.
- Lack of Industry-Specific Features: Some providers neglect to offer 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 essential 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 hide additional costs, such as monthly fees or PCI compliance charges, impacting the dealership’s bottom line.
- Limited Payment Options: A lack 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 business insights.
These challenges underscore the importance of selecting a provider that offers competitive rates, reliable technology, industry-specific features, robust security, and responsive customer support to address the distinct requirements of independent and franchise dealerships.
Meet Peri by Solera: Revolutionizing Payment Processing
Introducing Peri by Solera – a payment processing service designed to help dealerships reduce costs on every transaction. It enables businesses to swiftly adopt or enhance their payment options with lower fees, bolstering 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.