Fixed Ops Magazine 2024 Vol 21-3 - 62

for dealership finance teams to confidently continue
ISO relationships. According to the J.D. Power 2023
U.S. Dealer Financing Satisfaction Study, in-person
meetings between dealers and lending sales reps significantly
impacted outcomes.
While dealership F&I teams generally show openness
to incorporating AI and machine learning in loan adjudication
processes, the approach is still cautious as
the technology continues to develop, emphasizing the
importance of striking a balance between technology
and interpersonal relationships.
In navigating this competitive landscape, auto dealerships
should consider payment solutions that address
the holistic customer experience. Thinking outside the
box of the incumbents, and considering more modern
SaaS payment solutions will drive revenue forward.
POWERING PROFITS: CHOOSING THE
RIGHT PAYMENTS PROCESSOR
Finding the ideal payments processor beyond the traditional
players can be a game-changer, propelling
your dealership towards streamlined operations and
enhanced customer satisfaction. Below is a comprehensive
list of what to look for in a payments processing
solution.
* Flexible Payment Options: Look for a processor
that offers a diverse range of payment options, catering
to both traditional methods like credit cards
and debit cards as well as newer alternatives like Apple
Pay, Google Pay, and various buy now pay later
options (i.e. Affirm & Sunbit). This ensures versatility
and convenience for your customers.
* Technology Integration: Opt for a payments processor
that seamlessly integrates with your existing
systems, enabling swift and efficient transactions
and reconciliation. Advanced terminal options, including
WiFi and Bluetooth-enabled devices compatible
with EMV contactless chip specifications, enhance
flexibility and speed.
* Surcharging Ability: Find a processor that gives
you the opportunity to pass credit card costs onto
the consumer. While this may not be a consideration
for your business currently, it is much easier to make
62
the change to surcharge implementation if the processor
you chose has the tools to allow you to make
this change. Otherwise you will be forced to move to
another processor which is very time consuming and
could have additional costs.
* Security and Fraud Prevention: Prioritize security
measures that safeguard sensitive transactions and
data. Choose a processor equipped with robust authentication
and verification features such as 3DS,
shifting liabilities to issuing banks to mitigate bad
debt losses and chargebacks.
* Cost-Efficiency: Seek processors that offer competitive
pricing models and compliance with surcharge
regulations to allow the Dealership to minimize
processing fees.
* Customer Support: Opt for a processor that offers
round-the-clock customer service and support, ensuring
prompt assistance in case of any issues or queries.
Accessibility and reliability are key considerations in
fostering a positive and seamless experience.
* Detailed Reporting: Seek out processors that provide
comprehensive reporting and analytics tools,
empowering you to gain valuable insights into your
dealership's financial health and make informed decisions.
Features like multi-department payments
and easy reconciliation streamline operations and
save time.
Choosing the right payments processor is paramount
for auto dealerships seeking to optimize efficiency,
reduce costs, and enhance customer satisfaction. The
landscape is competitive, with options ranging from
legacy players to technology forward startups. This
comprehensive summary should help guide and support
you on your journey to creating the best experience
for your customers.
Kiran Udeshi is a 25+
year veteran of the automotive
industry. He has
held leadership roles at
Nissan, Infiniti, Hyundai,
and myKaarma. Kiran's
focus is to help dealers
enhance their customer
interaction experience.
http://mykaarma.com
Fixed Ops Magazine 2024 Vol 21-3

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