In these current market conditions – the way that people pay for EVERYTHING is changing at a rapid pace.
For 40–50 years, Visa and Mastercard would not allow businesses to charge customers differently based on payment method. That began to change in 2010 when the Dodd-Frank Act regulated debit card costs. In 2017, a Supreme Court ruling determined that businesses have a First Amendment right to communicate to customers that they could save money by using a different form of payment. This was further confirmed in a 2018 class action lawsuit that resulted in a $6.4 billion settlement.
Bottom line: these laws have changed.
Even if you’ve never sent money via Venmo or Cash App, your customers have. There are nearly 120 million users on those two platforms alone. Their policy is simple: a 3% additional fee if a credit card is used and no additional fee when using a bank account.
Have you heard of Cash Discount and Surcharge? Are you confused about the difference? How will this affect your bottom line?
Benefits: These law changes are great for businesses across the country—especially dealerships and their bottom-line profitability—but they must proceed with caution, as very specific compliance regulations must be followed.
Obstacles: The biggest obstacle to implementing this strategy is what we call the perceived problem versus the actual problem. How will customers react? Some dealers expect major pushback, but we’ve found that fewer than 1% of customers even ask about the new policy.
How we help
This is not a DIY project. After years of research, when rolled out correctly across all departments, dealers can benefit significantly. The key to a successful rollout is training and implementation. Dealer Merchant Services helps you stay compliant while mitigating any CSI concerns. We guide you through best practices with Dealer Merchant Services University, certifying all customer-facing employees and supporting on-site installation.
Who we are
Our executive team is led by automotive experts with over 75 years of combined experience. We work exclusively with dealerships and understand the complexities of the industry. Dealers across the country have adopted this strategy with great success. Our proprietary process and patented technology have been reverse-engineered for a smooth and successful implementation.
Have you heard of Cash Discount and Surcharge? Are you confused about the difference? How will this affect your bottom line? Join us in our upcoming webinar to discuss the hottest topic in your 20 Group.
4 topics to discuss:
- Create awareness around credit card processing expenses and hidden fees
- Educate on legal and compliance requirements
- Review two different program types, including pros and cons
- Best practices for customer experience
Our goal is to save the dealer body over $50 million in the next three years. We will help you choose the right partner and program to navigate these changes and put that money to better use in your store. Join us or reach out today for a free savings analysis.
BIO: Amberly Allen is Managing Partner of Dealer Merchant Services and President of DI Marketing. She founded DI Marketing in 2005, which quickly became one of the fastest-growing businesses in the country. Her accolades include INC 5000 (2x), Top 40 Under 40, and Ernst & Young Winning Women finalist. Maximizing profitability has always been the most important topic for decision-makers. DMS is the fastest-growing credit card processing company in automotive, and her mission is to educate dealers on legal changes and save them $50 million+ by 2025.