Traditionally merchants in the car and truck dealership industry have been accepting Cash, Bank transfer, ACH and Check transactions. With the advancement in the buying capacity of individuals, the financial Institutions are offering a more significant line of credit on different credit cards. It has become easier for people to purchase car and trucks by using the credit cards. Merchants in the car and truck dealership industry can accept payments by utilizing the services offered by various payment service providers.
A Merchant account for car and truck dealership can be used by the merchant for various related services and sales. It should not be restricted only towards selling cars and trucks. It can also be utilized for selling used cars and trucks. Most of the showrooms have a special section that handles the sales of accessories and spare parts. Automobile manufacturers recommend merchants to promote genuine spare parts for cars and trucks. The merchant can make additional profit by expanding the sales offering in the way of adding accessories.
Automobile owners prefer to get their cars and trucks serviced at the authorized service center. Many dealers also offer repair services for automobiles. With the availability of an online merchant account or point of sale, terminal merchants can readily accept credit and debit card transactions from the buyers.
Some merchants also offer car and truck leasing. These merchants can also apply for a merchant account with the Merchant classification codes of MCC 5511(New and Used) and MCC 5512(Used only)
Mode of payment or transaction for merchants operating in the car and truck sales and service industry.
- Online Credit, Debit, Prepaid Card and Charge Card processing. (Card Not Present): The most common mode of payment includes the online payment processing. Merchant gets access to the API information. The merchants integrate the sales website or Mobile app to the payment gateway by using API/SDK.
- Card Present Credit and Debit Card Transactions: This mode of the transaction includes a point of sales device also known as the point of sales terminal(POS). The customer hands over the card to the merchant and the merchant swipes the card over the terminal. A large dealership may request multiple terminals for various store locations.
Contactless Payments. With the availability of NFC technology, customers can quickly make payments without giving the card to the merchant. To accept NFC payments from popular payment applications like Samsung Pay, Apple Pay and Android pay a merchant must use contactless payment terminal. Apple Pay, Android Pay, and Samsung pay are becoming extremely popular in almost every industry. It is always better to offer multiple modes of payment processing to your customers. You should also keep this in mind that people prefer to attach that credit and debit card to their mobile payment apps. Sometimes these customers may not have access to the credit card physically, but they may have access to any of the well-known mobile applications. As a visionary business owner, you would probably not be interested in losing sales. Get contactless payment terminals today.
Echeck and ACH Payment Processing
Since merchants from this industry accept transactions of higher value, they may be considered as High Ticket Merchant. Some financial institutions may be reluctant in offering a payment gateway of Merchant account to these merchants. If you are finding it hard to get a credit card processing solution, then you can also use ACH Payment processing. Whether you are selling brand new cars or are in the business of selling Used/Pre-owned vehicles, you can certainly use ACH payment processing as a reliable alternative mode of payment processing in the United States. ACH payment processing solution also offers Same Day ACH. It is a lot easier to get an ACH payment processing solution then credit card processing solution for automobile sales.
Substitute Check Solutions for Automobile Sellers.
Apart from card and ACH transactions merchants can also use a substitute check as a reliable mode of payment processing. A substitute check is a digital copy of the regular paper check. It has precisely same value as the regular paper check. It works with many banks in The USA.
Merchant Cash Advance and Business Funding for entrepreneurs in car and truck sales industry.
Businesses in the automobile Sales and Repair verticals are always in need of cash flow. They need funding to expand and to buy new equipment. If you are already accepting credit card payments through a point of sales terminal and have been in business for over a year time, then there may be a high possibility that a lender may be interested in offering you the required funding for your business.
Merchant Account Application Process – Cars and Truck Dealers
The application process to get a merchant account for car and truck dealership is pretty much the same as it is for other industries. The Merchant fills the merchant account application and mentions all the vital details relating to his business activities. Along with the form, the merchant also sends the KYC document also known as know your customer documents to the payment service provider. Financial Institution may require a site inspection. After the successful risk analysis and site inspection by the acquiring bank, the acquiring institution may send the merchant account agreement to the merchant. The merchant must analyze the agreement carefully and look at all the clauses. In case if the merchant realizes a provision that needs to be renegotiated, then the merchants must go back to the processing company and request modification of that specific close.
Note:- Financial Institutions prefer to work with financially sound organizations that are capable of handling future chargebacks and dispute. Try to ensure that you send enough documents to the acquiring institution that helps them to gaze your true creditworthiness.
Chargebacks in Car and Truck Sales Industry
Like every other industry in the automobile sales industry as well chargebacks appear. Merchants can take various measures to reduce the chargebacks and reduce fraud. It all starts with verifying the details right at the time of the transaction. If it is a card present transaction, then the merchant may request the customer to show the national ID. The merchant can match the signature that appears on the national ID with the one that appears on the back of the credit or debit card.
Since transactions in the automobile sales industry are of very high value, we advise merchants to sign an agreement with the buyer. It must display the consent received from the buyer for the credit card transaction.
Quadrapay.com works with multiple merchant services organizations. Our primary goal is to help you find the most reliable solution for your industry type. Our close relationship with payment processing companies, Merchant cash advance companies ACH and Echeck processing companies help us to assist merchants from almost every industry. If your application has been declined for you have been listed as terminated merchant still some options may work for you. To assist you further will be interested in receiving an email from you. You can email us at [email protected] One of our representatives will be happy to talk to you and suggest you the best possible payment processing options.
Apart from payment service providers in the United States we also worked with multiple processing companies in Europe, Latin America, Asia and almost every corner of the world. If you are finding it hard to get a payment gateway or merchant account in your country, then we request you to contact us. Our global relationship may add value to your business, and you may be able to accept transactions on your business website.