An auto repair shop does more than just fix cars. They interact with customers and process payments. Merchant Stronghold Merchant Services allows you to manage the payment processing portion of your business from one interface. We can help you with everything from processing payments to obtaining payment equipment to growing your business through loyalty programs, gift cards, and other ways customers can show support.
Merchant Stronghold offers payment processing for dealerships and auto shops. You’ll have the security of transactions encrypted and an easy checkout process for every customer interaction. Merchant Stronghold makes it easy to handle large or small purchases in real-time.
Why are automotive parts and accessories considered high-risk?
Because the automotive industry is known for having a high number of chargebacks, some banks won’t accept businesses. A start-up company may not be able to anticipate the risks associated with working with customers who have sometimes unrealistic expectations regarding automotive parts and accessories services. Many people want these products and banks may not be able to understand the industry.
Fraudsters also target automotive parts because of their high resale values. Fraudsters have moved online since EMV chip cards are widely used.
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What are the reasons for requiring so much information for an automotive parts and accessories merchant account?
Due to the higher risk of auto parts companies, merchants must be more careful during their onboarding process. Underwriters will need to examine a variety of documents in order to ensure that the business is financially sound and compliant. Merchant Stronghold is unique in that we review merchant applications before they are submitted to the bank. Our team of experienced underwriters is familiar with high-risk transactions. Your business is presented to banks with all necessary documents and full disclosure to build trust and stability.
It is crucial to present your business in the best light possible from the first contact. Merchant accounts are basically a line of credit from a processor. Financial institutions worry that high-risk merchants may be more likely to violate the card brand laws, regulations, and chargeback ratios. FTC complaints against merchants can create liability for both merchants and processors under Know Your Customer (KYC), regulations.
How do I increase my processing limits?
After getting payment processing solutions for automotive parts and accessories companies, payment processors establish monthly processing limits for new businesses. These are typically between $25,000- $50,000 per month for the first three-to-six months. This allows processors to assess customer risk by reviewing payment flows, ticket sizes, processing levels, and chargeback ratios.
Companies that can maintain consistent, stable performance during their initial trial periods can often increase their processing limits.
Managing Alerts, Refunds, and Chargebacks
A merchant account that is healthy will have a low rate of chargebacks. Your merchant account could be shut down if chargebacks exceed the maximum card brands allow. Banks will sometimes close down entire vertical industries if a merchant category is racking up excessive chargebacks.
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High-risk verticals must self-regulate and collaborate to create industry best practices.
Complete Payment Processing Solutions For Automotive Industry
No matter how big or small your business is, our payment processing tools can help auto shops and other automotive companies streamline their operations, save time, and positively impact the bottom line.
Merchant Stronghold is able to help you with the best payment processing solutions for the automotive industry, whether you are looking to improve your customer service or reduce the stress of managing your company’s finances.