How dealership-specific payment systems improve dealership efficiency
Dealerships process millions of dollars in payments, but generic payment solutions may not address the unique workflows and operational demands of automotive retail. Payment systems designed specifically for dealerships and the automotive ecosystem can help reduce administrative burdens, minimize reconciliation errors, improve financial visibility and create a more transparent checkout experience for customers.
In the second part of our three-part series with myKaarma on Inside Automotive, Panos Kotselas, Senior Director of Payment Operations at myKaarma, joins us to explain how dealership-specific payment technology can help dealerships reduce manual work, manage surcharging and give customers more flexibility when paying for service.
According to Kotselas, one of the biggest differences between a standard retail payment system and an automotive-specific solution is how the technology connects with dealership operations. Since service departments rely on repair orders that contain customer information, invoice numbers and transaction amounts, when payment systems operate separately from the dealership management system, employees may need to enter the same information multiple times, increasing the risk of errors.
“So, the smoothest thing we’ve seen in the industry is showing the customer that surcharge or that dual price.”
Kotselas noted that the industry has seen six-figure payment mistakes, while integration with the DMS can bring those errors close to zero. Connecting payment processing directly to the dealership’s system of record also reduces the need for employees to switch between platforms and gives the back office more reliable transaction data.
Payment flexibility is another opportunity, especially when customers face unexpected repair costs. Kotselas gives the example of a customer who budgets for a routine service visit may discover the vehicle needs more extensive work, creating a significant gap between the expected and actual bill. Buy now, pay later options can give customers additional flexibility when considering necessary repairs, but Kotselas emphasized the importance of presenting those options BEFORE the final payment stage. By introducing financing options during the vehicle inspection process, dealers can help customers understand their choices when deciding which recommended services to approve, rather than waiting until checkout.
For dealership groups with multiple locations, centralized reporting can also improve oversight and decision-making. Without a unified payment platform, controllers and back-office employees may have to track down service advisors to determine whether transactions were completed and recorded correctly. Kotselas explained that a centralized reporting dashboard can give dealership leaders visibility into payment activity across locations, including surcharge performance and manually entered transactions that could create additional risk. That visibility can help groups identify process issues, adjust access permissions and make more informed decisions about payment security and profitability.
Ultimately, clear surcharging and dual pricing practices require consistent transparency across all touchpoints, from scheduling to final checkout. By connecting integrated payment solutions across every department, including service, parts, and vehicle sales, dealerships can reduce manual errors, simplify back-office reporting, and deliver a seamless experience for customers and staff alike.
Be sure to check out the rest of the three-part series with myKaarma, right here on CBTNews.com.