5 Important Facts About Credit Card Processing

If your Dealership accepts credit cards, you may think you already know everything that you need to know. But here are 5 extremely important facts that you may not be aware of. Being armed with this information will save your dealership money and improve your bottom line.


Here are 5 facts about credit card processing that could help your dealership save money:

  1. Credit card processing fees are tax deductible and it’s typically a sizable deduction for businesses that accept cards. As tax season approaches, don’t forget to take this deduction!
  2. Using your local bank does not save you money on credit card processing. Most local banks outsource credit card processing services to third party sales teams who work for larger processors. By using your local bank you are likely paying more than if you went direct to the processor since it’s adding another layer to the pot.
  3. There is only one part of your credit card processing cost that is negotiable and that is the processor’s markup over interchange and assessments. Interchange and assessment are the same for all credit card processors. For lack of a better term, Interchange is the wholesale rates that processors pay¬†before it is marked up and passed along to your dealership.
  4. Not using AVS (address verification service) can cost you money. Visa, MasterCard and Discover require the customer’s billing address be entered for all card-not-present transactions. If you don’t provide it, it can result in a downgraded transaction (resulting in higher fees).
  5. Tiered merchant account pricing costs you more. You know you have a tiered pricing structure when your processor quotes three different rates: qualified, mid-qualified, and non-qualified. They suck you in with a super low “qualified” rate … but what they fail to tell you is that a good portion of your transactions will actually fall into the mid and non-qualified higher rates. ¬†Look for services that offer a flat fee, rather than tiered pricing.


Novera is happy to offer a FREE savings analysis to show you how Novera Payment Solutions can save you significant money on your credit card processing fees. Visit to learn more.

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