Fees Are No Breeze: Credit Card Fees Often Cost Auto Glass Shops Thousands

Credit card fees can cost small auto glass shops thousands of dollars annually. Some build the extra cost into their pricing.

Deanna Hatch, the office manager of Tiny & Sons Auto Glass in Pembroke, Massachusetts, says she asks customers how they plan to pay up front and takes that into account.

“It’s written right into our pricing; (our customers) don’t even realize that they’re pre-paying that fee,” she says.

Chad Pillars of Pillars Auto Glass in Plainwell, Michigan, takes a different approach.

“It doesn’t necessarily affect our pricing, since I don’t ask them before I price the job how they’re going to pay,” he says. “…I think it’s the cost of doing business.”

Pillars says the fees take “3% off the top of almost every job” where the customer pays with a credit card.

Customers aren’t the only ones who pay with credit cards. Hatch says she’s frequently received payments from insurance companies using credit cards, even though the company hadn’t previously indicated they would use a card. Tiny & Sons then has to pay that processing fee itself, Hatch says, because insurance companies don’t let the company build it into the bill.

“The pricing isn’t exactly helpful from the insurance companies, and then we get hit with the fees from the credit card companies as well,” she says.

Hatch says that, for her company, the processing fees from 10 claims would be enough to pay a week’s wages for one of the shop’s installation assistants.

“We’re fighting for every penny that we get now; to get whacked with those fees is not encouraging,” Hatch says.

Though Pillars Auto Glass doesn’t have as big of an issue with insurance companies, credit card fees still rack up.

“It’s thousands (of dollars) in a year, and not just a couple thousand,” Pillars says.

He and Hatch both say that legislation forcing credit cards to make their fees more competitive would help their businesses.

This article is from glassBYTEs™, the free e-newsletter that covers the latest auto glass industry news. Click HERE to sign up—there is no charge. Interested in a deeper dive? Free subscriptions to Auto Glass Repair and Replacement (AGRR) magazine in print or digital format are available. Subscribe at no charge HERE.

This entry was posted in glassBYTEs Original Story and tagged , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *