Auto finance companies have incredibly complex needs when it comes to payment processing. Most customers no longer utilize paper checks to pay monthly bills. Consumers prefer more convenient payment methods that are easier to use and result in prompt outcomes. For these reasons, people prefer to make payments using their credit and debit cards. They also want payment options that provide them the ability to pay electronically using Internet-enabled devices such as computers, smartphones, and tablets.
Your payment processing partner should work side by side with your business to create a credit and debit card payment system that fulfills all your current needs and future goals. The ability to accept credit and debit card payments begins with a merchant account. However, they can be difficult to obtain for the auto finance industry. The following information will provide you with some helpful advice about successfully obtaining an auto finance merchant account.
Why an Auto Finance Merchant Account is Declined
In order to accept credit and debit card payments, auto-finance companies must have a reliable merchant account in place. However, traditional banks view the industry as high-risk and decline the business. This can be due to an excessive number of chargebacks. For some consumers, automobile loans can make up a significant portion of the monthly income. If cash flow is an issue, people tend to pay housing expenses first.
As auto loan payments are usually paid via a credit or debit card, customers can call the issuing bank and cancel the transaction in the form of a chargeback. Your customers may believe that this is a viable method to avoid late payments. Needless to say, it is not and banks would rather turn down your auto finance merchant account application than face the potential for a large number of chargebacks.
An Innovative Solution for an Auto Finance Merchant Account
Your auto finance company needs to have the ability to accept credit and debit card payments in order to survive in the current business environment. So how can your auto finance organization successfully obtain a merchant account? Payment processing specialists, such as Payment Savvy, are uniquely positioned to provide your auto finance organization with a first-rate merchant account that will fulfill all your business requirements.
Please contact us today to review your options, apply for a high-risk merchant account, and to obtain answers to your questions. We look forward to hearing from you and working with your company. If you have enjoyed reading this article and found it informative, please share it with all of your contacts on social media. Payment Savvy greatly appreciates your efforts in this manner. Please stay tuned for more interesting articles.