Many dealers constantly take a hit for customers who are using their credit card to process payments related to their vehicles. Stop paying for your customer’s air miles and recover credit card fees to offset the cost of credit card fees.
Recovering credit card fees can help your dealership offset the costs to customers who prefer to pay with a card. This allows dealers to add a percentage fee to their customers' credit card transactions to cover credit card processing costs.
If you’re thinking about this for your business, here are 5 things to consider when implementing such a program:
What are the requirements and what’s allowed in my state? By enrolling in the Key Bank Merchant Services program, some of these requirements will be fulfilled on your behalf, including but not limited to notifying the card brands and registering your participation in the program with them; itemizing the recovered credit card fee on customer receipts preventing such charges on applicable debit and prepaid card transactions; and refunding credit card fees on returns. Please note- each state also has its own business commerce laws. It is highly recommended that merchants review these laws prior to enrolling into the program.
What are your responsibilities as a merchant? As a merchant, you're required to clearly and prominently display the recovery percentage fee at the point of sale (POS) and point of entry, notifying all customers that this fee will be applied if they pay by credit card. You are responsible for creating your own signage that complies with requirements by the card brand rules and any relevant state laws. Some states may have additional requirements.
What can I recover? Recovering credit card fees applies only to credit transactions. Debit, gift cards and prepaid cards do not qualify.
What do I need to disclose to my customers? Make sure you’re providing the right disclosures to your customers. Here’s an example of what that might look like: We impose a 3% fee on the transaction amount on all credit card transactions, which is not greater than our cost of acceptance. We do not apply this fee to debit or prepaid card transactions. Itemization of the final amount will be identified separately on the transaction receipt.
Interested in hearing more about how you can potentially increase your bottom line and offset credit card processing fees? KeyBank is hosting a webinar on March 29th at 1 PM. Register today to learn from the experts in getting dealers set up correctly and how to navigate this complex program to help you save.
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