Many customers expect dealerships to offer fast, convenient, and secure payment options, whether they're purchasing a vehicle, servicing one, or ordering parts. With modern online payment solutions, your dealership can meet expectations by reducing friction, increasing cash flow, and streamlining operations across Sales, Service, and Parts.
This guide is designed specifically for auto dealerships that want to accept both in-person and online payments using a single, scalable platform. We'll break down the most popular payment methods, payment gateway options, and features to consider when choosing a provider to fully meet your business's payment processing needs.
Why Online Payment Solutions Matter in the Automotive Industry
Dealerships that adopt modern payment methods can start accepting payments faster, reduce manual work, and simplify the checkout process across departments. While dealerships primarily accept in-person payments, online payments (like sending text-to-pay links) help dealerships align with consumer preferences as digital payment experiences gain traction.
A robust online payment system lets you:
- Accept credit card payments, debit cards, and ACH bank transfers
- Send secure payment requests via text and email
- Improve cash flow with faster funding
- Reduce fraud with PCI compliance and encryption
- Support recurring payments for service plans or monthly charges
- Offer your customers their preferred payment method, including digital wallet payments and contactless cards
- Surcharge to offset nearly 100% of credit card fees with built in compliance tools
- Simplify complex reconciliation procedures with custom batches and robust reporting
Whether customers are paying for a down payment on a new vehicle, a one-time repair charge, or an oil-change subscription package, convenience matters.
Online Payment Methods for Dealerships
1. Hosted Payment Pages
Hosted payment pages are secure web forms your customers can access via a "Pay Now" button. They're perfect for online parts sales, vehicle deposits, and remote service payments.
Key features to look for:
- PCI Level 1 compliance
- Mobile-friendly design
- Option to pre-fill amount or invoice number
- Ability to add notes or upload repair documentation
- Compliant credit card surcharging
2. E-commerce Checkout on Your Website
If your ecommerce site sells accessories or branded merchandise, a shopping cart with checkout is essential. Ensure your provider integrates with a platform like WooCommerce to offer seamless card payments and digital wallet options.
3. Digital Invoices
Send a digital invoice via text or email that includes a secure payment link. It's a quick way to collect service payments, vehicle deposits, or parts balances, without a time consuming and inconvenient back-and-forth.
Digital Invoice benefits include:
- Reduce days sales outstanding (DSO)
- Improve record-keeping and reconciliation
- Use brandable templates and terms
4. Text to Pay (SMS Payments)
This payment app functionality sends secure links via text, allowing customers to pay instantly from their mobile device. It's ideal for curbside service, after-hours pickup, or no-contact drop-off.
Supported payment app methods:
- Debit card
- Credit card
- ACH
5. Virtual Terminals for Phone Payments
Some customers still prefer to pay over the phone. A virtual terminal allows staff to securely enter payment details, or better yet, send a payment link mid-call for enhanced PCI compliance.
Virtual Terminal features to look for:
- Address Verification (AVS) and CVV fields to reduce fraud
- Role-based permissions and audit logs
- Integration with AI-based IVR solutions
6. Recurring Payments
Recurring payments enable you to set up customers on billing plans and securely store their card or bank account details on file, allowing for automatic collection of scheduled payments weekly, monthly, quarterly, or custom. Offer recurring billing for service contracts, fleet maintenance, or vehicle subscription plans. Customers enter their payment method once, and the system handles the rest.
Recurring payment must-haves:
- Secure tokenization
- Real-time alerts for failed payments
Payment Methods That Support Dealership Growth
Debit and Credit Card Payments
Card payments are a top choice for both individual and business buyers. Credit card payments are often preferred by buyers who want to earn rewards points, pay off high-ticket purchases over time, or improve their credit rating. Alternatively, consumers may use their debit cards to avoid credit card surcharges.
Your payment solution should support:
- All major credit cards
- Contactless payments (tap-to-pay, digital wallets)
- Guest checkout options
ACH Payments and Bank Account Transfers
ACH is a cost-effective alternative to cards. ACH is ideal for high-ticket purchases or recurring charges. Select a provider with tools like Plaid for instant bank account verification and real-time balance checks.
Benefits:
- Lower transaction costs
- Fewer failed payments
- Better cash flow for larger businesses
Digital Wallets
Customers are increasingly using digital wallet payments, such as Apple Pay and Google Pay. These methods are secure, fast, and optimized for mobile checkouts.
Note: Apple Payments Services LLC and Google LLC are not banks and offer digital payment tools through their respective platforms.
Behind the Scenes: Gateway and Integration Essentials
What Is a Payment Gateway?
A payment gateway is the core infrastructure that powers all of your online payment activity, acting as the secure intermediary technology between your software and the payment networks. Your payment gateway is the technology that captures payment details, encrypts them, and routes the transaction for approval. It's crucial for both in-person and online payments.
Key features to ask about:
- PCI compliance
- Tokenization
- Multi-location reporting
Payment Gateway vs. Payment Processor
The payment gateway captures the data; the processor routes it through financial institutions and card networks. Some systems bundle both, while others charge extra gateway fees.
One Platform for All Payment Activity
Modern dealerships benefit from unified systems that support:
- Accepting payments across locations
- Consolidated reporting by department, rooftop, and brand
- Streamlined operations with fewer vendors
Look for payment service providers like PayJunction that offer all-in-one solutions to simplify vendor management and reduce hidden fees. You have one point of contact and one support team, eliminating the need to connect multiple systems and deal with finger-pointing if issues arise.
Integration Options for Dealership Systems
Traditional APIs vs. No-code Payments Integration®
If you use a DMS, CRM, or appointment scheduling tool, select a payment provider that offers flexible integration paths.
- Traditional API: Offers deep customization but requires development.
- No-Code: Tools like PayJunction's No-code Payments Integration® allow you to map fields visually, create workflows, and accept payments inside your existing DMS through a simple and secure browser extension with no setup costs.
Security and Compliance for Online Payments
PCI Compliance and Encryption
Ensure your payment platform is PCI DSS Level 1 certified. A processor-based Level 1 data center reduces your liability while protecting cardholder data and maintaining your dealership's reputation.
Tokenization and Point-to-Point Encryption
Replace sensitive data with encrypted tokens to protect against breaches and comply with PCI rules across in-person business and online operations.
Reduce Fraud With Built-in Tools
Look for:
- AVS and CVV validation to confirm a cardholder's identity
- 3D Secure checkout authentication (Verified by Visa or Mastercard Identity Check)
- Velocity limits to block card testing attacks
Cost Considerations and Transparency
Setup Costs and Monthly Fees
Avoid solutions with high setup costs or long-term contracts. Ethical payment providers offer:
- Month-to-month terms
- No hidden fees
- Custom pricing for your business type and average transaction size
Transaction Costs and Limits
Understand what you pay per transaction, and what the limits are.
- Credit card rates vary by card issuer and acceptance method
- ACH and debit card transactions may cost less
What to Look for in a Payment Service Provider
When evaluating providers, keep these key features in mind:
1. Surcharging
Surcharging allows you to recoup the cost of credit card processing by adding a small fee (typically up to 3%) to credit card purchases. Customers avoid the fee by paying with debit, ACH, cash, or check. Surcharging has a number of compliance requirements and is not permitted in every state so having a payments provider that can help with compliance like PayJunction is important.
2. Omnichannel Support
Choose a platform that handles in-person, mobile, and online payments in one dashboard.
3. Live Customer Support
Issues happen. Ensure your provider offers responsive, U.S. based support during each business day.
4. Fast Setup and Onboarding
Start accepting payments quickly without jumping through hoops or facing delays.
5. Reporting and Reconciliation Tools
Unified reporting by rooftop, department, and payment method makes it easy to manage money and reconcile transactions across the entire dealership.
The PayJunction Advantage for Dealerships
PayJunction helps automotive groups accept credit, debit, and ACH payments in-person and online, without extra cost or complexity.
With PayJunction, you get:
- A No-code Payments Integration® that can seamlessly integrate with your DMS
- SmartSurcharge that can offset nearly 100% of credit card fees and help you stay compliant with built-in tools
- Modern features like hosted checkout forms, text-to-pay, recurring billing, and ACH
- In-person payment support via cloud-connected Smart Terminals and a virtual terminal
- Transparent pricing, with no long term contracts or exit fees
- Award-winning, live, U.S. based support
With the right partner you can boost your bottom line, simplify checkout for every department, reduce fraud, and maintain PCI compliance.
Ready to improve your dealership’s payments? Schedule a 15-minute demo today!
