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Mike Anderson

mike anderson autobody newsMike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.

 
Friday, 01 October 2021 20:59

From the Desk of Mike Anderson: Auto Body Shops Can Take Control of Credit Card Processing Fees

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It came as no surprise to me our “Who Pays for What?” surveys have found the vast majority (95%) of collision repair businesses accept payment from customers by credit card.

All of us as consumers have become accustomed to the convenience of using credit cards, and enjoying the rewards---cash back, travel points, etc.---we can receive by paying our bills with them.

 

But have you stopped to look recently at what it’s costing your business to offer that convenience to your customers? Have you looked into what your options are for reducing or eliminating those costs?

 

Now you might think I’m talking about shopping around among the hundreds of merchant processing options out there, most of which are all too eager to assure you they will meet or beat your current processing fees. That is one option.

 

But let’s look at some ways you might be able to trim your card processing costs without switching vendors.

 

It’s a project one of my Collision Advice teammates, Mark Head, spearheaded this year. He’s a true financial specialist, working with our Collision Advice clients to dig into their profit-and-loss statements and really make sure they understand how to maximize their profitability and where they need to focus their attention.

 

Mark first contacted our clients who are members of our “20 groups” to find out what the true cost was of their card processing, meaning the fees they were incurring monthly.

As you’re probably aware, card processing fees can vary significantly. Some are based on a flat percentage. Some include a percentage plus a per-transaction fee. Some vary based on the type of card (Visa, MasterCard, Amex, etc.). Some differ based on whether the card was present at the time of the transaction versus a remote transaction. Did you know that? I sure didn’t!

 

So Mark had our clients tell us which processing service they use---there were almost two dozen different vendors---and had them all use the same basis to determine...


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