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Insights and Expertise

Drive success: cessing does not just lead to inconvenience and dissatis-

faction, it can also result in a potential loss of sales due to
Innovative payment customer frustrations.

Beyond the risk of losing sales, dealerships are also fight-
solutions for ing off cybersecurity vulnerabilities, one of the largest
threats impacting businesses. In 2023, it was estimated
automotive retailers that 60 percent of credit card holders experienced some
sort of fraud (see https://bit.ly/3OSNyRq).

Dealerships handle a wealth of sensitive customer infor-
mation such as credit card details and personal informa-
tion, which, if compromised, can lead to the crisis of iden-
tity theft and financial loss for the customer. It's scary to
think that a single data breach can result in reputational
and financial repercussions that can take years to recover.

If slow transactions and cybersecurity vulnerabilities are
not enough, dealerships are also hit with credit card inter-
change fees. These fees are charged by credit card compa-
nies at each transaction and can be as much as 3 percent;
however, this fee quickly adds up over time. This can take
a serious bite into the profit margin for dealerships, which
can impact their ability to stay ahead in the highly com-
petitive auto dealership market.

Dealerships must understand how much they are spend-
ing on interchange fees, as they are typically hidden in the
monthly statements and often overlooked. Highlighting
By Austin Mac Nab these fees can allow dealerships to understand where they
VizyPay have been overpaying and whether alternative solutions
exist to minimize or all together eliminate the charges.
he used car market has been revving up the past
few years. In fact, Dimension Market Research Stay competitive and profitable
estimates the used car market to reach a whop- It is no secret that running a dealership is an expensive
T ping $1.8 trillion by 2024, largely driven by endeavor with net profit margins between 1 percent and
online sales platforms and the need for certified preowned 2 percent (see https://bit.ly/3ZPlq8n). This is substantially
vehicles (see https://bit.ly/3Be9K5D). low as dealerships face the reality of having to make op-
erational changes. A comprehensive payment processing
However, when it comes to payment processing, many solution with a system that is designed to meet the needs
dealerships face a substantial speed bump. From extended of used car dealerships can help dealerships stay competi-
transaction times to the ever-increasing security vulner- tive.
abilities that exist, these points of disruption can negative-
ly impact dealerships and daily operations. If left unad- As the world digitally migrates each year, dealerships
dressed, it will impact the dealership's bottom line. need to follow suit in their payment solutions. Streamlin-

The detrimental three ing the transaction process not only reduces the burden
on dealership operations but also drops pesky wait times,
Dealerships have a unique challenge when it comes to which should directly improve customer retention and
payment processing due to the high-value transactions satisfaction.
that go way beyond a typical retail experience. Thus they
are often hampered by long processing times, fraud and Additionally, payment solutions need to prioritize secu-
high interchange fees. With big-ticket items like vehicles, rity and the data of customers. Comprehensive security
dealerships must present multiple payment options, like features such as fraud detection, encryption and adhering
in-house financing, bank loans and third-party lenders. to the Payment Card Industry data, device and network
security standards (PCI), which ensure security require-
Unfortunately, as many know, the transaction process at ments for credit card processing, physical stores and pay-
a dealership is not a short one. As the process goes on, ment data meet strict standards and regulation compli-
customers' patience can be short-lived. Slow payment pro- ance.

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