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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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...such a surcharge is not legal in 10 states, including California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, Oklahoma, Texas and New York, though we heard recently that may change in New York. But here’s how it can work in the other 40 states.

 

“First, you have to post signage in your office or lobby or customer area explaining that all final bills include a 4% surcharge, for example, on top of the total bill,” Mark said. “The surcharge should be whatever percentage you actually pay in fees. And you need to tell the customer up front. That’s very important.”

 

It’s easy for a customer to avoid paying that surcharge: they just need to pay their bill with cash or a check. Basically, the credit card fee shows up on the customer’s end, not the shop’s; therefore the shop isn’t paying a fee.

 

Mark’s presentation on this was a real eye-opener for a lot of our auto body shop clients who really hadn’t realized, first, how much credit card fees were eroding their bottom line, and second, that they had options.

 

I’m so grateful to him for doing this research and being able to point our clients to some of the processors offering the cash-discount program if they are eligible to use it in their state.

 

“As shop owners, you always want to grow sales, but you need to keep an eye on costs as well,” Mark told them.

 

He’s the kind of “numbers guy” I’m thankful to have on my team.

 

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