Comparing Payment Processors for Auto Dealers: 2026 Guide

"What's the best payment processor for dealerships?"

We get this question constantly. And the honest answer is: it depends. The best processor for a single-point used car lot is different from the best for a multi-rooftop franchise group.

But there are universal criteria that matter for every dealership. This guide provides a framework for evaluating processors so you can make the right choice for your specific situation.

What Makes Dealership Payment Processing Different

Before comparing processors, understand why dealerships have unique needs. According to NADA, the average dealership processes thousands of payment transactions monthly across multiple departments:

High Transaction Diversity

• Tiny transactions (parts sale: $15)
• Medium transactions (service RO: $500)
• Large transactions (vehicle purchase: $50,000)

Most businesses have relatively consistent transaction sizes. Dealerships have everything.

Multiple Departments

• Service
• Parts
• Sales/F&I
• Sometimes body shop, rental, etc.

Each department may have different workflows and needs.

DMS Integration Requirements

Your payment processor must work with your dealer management system. This limits options significantly.

Surcharging Considerations

Dealerships increasingly want to surcharge. Not all processors handle this well — especially the compliance complexity.

Volume and Velocity

High-volume service departments need fast, reliable processing. Downtime costs real money.

Evaluation Criteria

1. DMS Integration

Questions to ask:

• Do you integrate with [your DMS]?
• What specifically syncs? (Amount, card type, RO number?)
• Is it real-time or batch?
• How is the integration maintained when DMS updates?

Red flags:

• "We're compatible" (vague — get specifics)
• No references using your DMS
• Integration is through a third party

What good looks like:

• Native, certified integration
• Clear documentation of what syncs
• References at similar dealerships
• Proactive maintenance

2. Pricing Model and Rates

Questions to ask:

• What pricing model? (Interchange-plus, tiered, flat rate)
• What's the processor markup?
• What are all the fees? (Monthly, per-transaction, annual, PCI, batch)
• What's my projected total cost based on my volume?

Red flags:

• Tiered pricing (avoid for any significant volume)
• Reluctance to itemize fees
• "It depends" without providing scenarios
• Long-term contract required

What good looks like:

• Interchange-plus pricing
• Clear, complete fee schedule
• Projected cost based on your actual volume
• Month-to-month or short-term options

3. Surcharging Capabilities

Questions to ask:

• Do you support surcharging?
• How do you handle state-by-state compliance?
• How do you identify credit vs. debit?
• What happens to surcharge revenue?

Red flags:

• "Sure, you can surcharge" (without compliance details)
• Manual surcharge calculation
• No state law tracking

What good looks like:

• Automatic credit/debit detection
• State-by-state compliance built in
• Surcharge revenue clearly visible
• Compliant receipt generation

4. Hardware and Terminals

Questions to ask:

• What terminals do you offer/support?
• Are they P2PE certified?
• Lease vs. purchase options?
• What's the support process when terminals fail?

Red flags:

• Only older terminal models
• Required lease with high costs
• Unclear support/replacement process

What good looks like:

• Modern, P2PE-certified terminals
• Purchase option available
• Clear support SLAs
• Loaner program for failures

5. Support and Service

Questions to ask:

• What are support hours?
• What's the escalation path for critical issues?
• Who's my day-to-day contact?
• How quickly are issues typically resolved?

Red flags:

• Support only during business hours
• No dedicated contact
• Long hold times (test this before signing)

What good looks like:

• 24/7 support for critical issues
• Dedicated relationship manager
• Clear escalation path
• Strong references on support quality

Types of Processors

DMS-Native Processors

(CDK Payments, Reynolds Payments, Cox Automotive Payments)

Pros:

• Best integration (same company)
• Single vendor relationship
• Support is straightforward

Cons:

• Often higher rates (captive market)
• Limited features
• Harder to switch later

Best for: Dealerships prioritizing simplicity over cost.

Major Payment Processors

(Worldpay, Global Payments, Elavon, etc.)

Pros:

• Often competitive rates
• Established companies
• Wide acceptance

Cons:

• Dealership integration may be weak
• You're a small fish to them
• Support can be generic

Best for: Large dealer groups with negotiating leverage.

Dealership-Focused Processors

(Specialized processors including Anchorbase)

Pros:

• Built for dealership needs
• Strong DMS integration
• Understand your business
• Features like surcharging

Cons:

• Smaller companies
• May be less known

Best for: Dealerships wanting specialized service and features.

Generic Payment Facilitators

(Square, Stripe, etc.)

Pros:

• Easy to set up
• Modern interfaces
• Good for simple needs

Cons:

• No DMS integration
• Not built for dealerships
• Higher rates for most transaction types

Best for: Very small operations, not recommended for full dealerships.

The Comparison Process

Step 1: Document Your Requirements

Before talking to processors:

• What DMS do you use?
• What's your monthly card volume?
• How many transactions per month?
• Which departments need terminals?
• Do you want surcharging?
• What pain points exist with current processor?

Step 2: Create a Shortlist

Based on your requirements:

• Identify 3-5 processors to evaluate
• Ensure they integrate with your DMS
• Verify they offer features you need

Step 3: Request Detailed Proposals

Ask each processor for:

• Pricing based on your actual volume
• Integration specifics for your DMS
• Hardware recommendations
• Implementation timeline
• Contract terms

Step 4: Compare Apples to Apples

Create a comparison spreadsheet:

• Total monthly cost (not just rate)
• Integration capabilities
• Features included
• Contract terms
• Support offerings

Step 5: Check References

For your top 2-3:

• Ask for dealership references
• Specifically request references on your DMS
• Ask references about integration quality, support, and issues

Step 6: Negotiate

Use competitive quotes as leverage:

• Processors have margin
• Better rates are usually available
• Ask about fee elimination
• Discuss contract terms

Step 7: Decide and Implement

Choose based on:

• Total value (not just lowest rate)
• Integration quality
• Confidence in support
• Gut feel about the relationship

Common Mistakes

Choosing on Rate Alone

A processor with 0.1% lower rate but poor integration will cost you more in labor.

Ignoring Integration

"We can export and import" is not integration. Real integration saves hours weekly.

Signing Long-Term Contracts

Avoid multi-year commitments. The industry changes; your needs change.

Not Checking References

Demos show best-case. References show reality.

Underestimating Switching Costs

Budget time for implementation, training, and parallel operation.

Making the Final Decision

Weigh these factors in this order:

1. Integration quality — Dealership-specific need, non-negotiable
2. Total cost — Rates plus fees plus labor impact
3. Features — Surcharging, reporting, multi-location support
4. Support — You'll need it eventually; make sure it's good
5. Contract terms — Flexibility matters

Our Perspective

At Anchorbase, we're obviously biased — we think we're the best choice for most dealerships. But honestly, we're not right for everyone.

We're a great fit if:

• You're on CDK, Reynolds, or Dealertrack
• You want real integration
• You want surcharging done right
• You want transparent, competitive pricing
• You value responsive support

We're not the right fit if:

• You're on a DMS we don't integrate with (yet)
• You need a giant global processor for enterprise reasons
• You want the absolute lowest possible rate regardless of everything else

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Compare Us to Your Current Processor →

We'll do a straight comparison — our rates vs. theirs, our integration vs. theirs. You'll have real numbers to make a decision.