Facepay offers the alternative to protect against Visa and Mastercard increased interchange and card not present rates in 2022 impacting all auto shops through premium and discount processors
Facepay Inc. announces a significant addition to its Relational Payments platform ahead of the credit card processor rate increase in 2022. This product is now available for all businesses that use the Facepay relational payments platform. This new product allows auto shops to convert customers to direct bank payments ahead of next year’s rate increases. This results in significant profits and more money in the shops’ pocket.
“not many shops realize the amount of service work needs to be sold each day just to cover losses (credit card fees)”
Both major credit card companies, Visa and Mastercard, announced that both credit card interchange fees and card not present rates will increase in 2022 after a delay due to COVID. These rates impact all full service and discount processors using their networks that are commonly used at auto shops. Rates are expected to increase at least 0.5% for interchange alone and small businesses projected to lose an additional 5-10% of their profits, an estimated $7,500 additional fees for an average shop, in addition to their existing credit card processor fees. These changes are intended to address fraudulent activity with online retailers and big box stores. It has an adverse effect on service driven auto shops.
According to Todd Westerlund, Chief Revenue Officer of Facepay, “Auto shops have never made more and never paid more fees than they have this year. The pandemic and supply chain aftermarket impact are incredible. Next year they will pay even more fees because of the rate increases and the time to prepare is now. It will erode all profits.”
Facepay currently works in the existing shop workflow. Service writers currently use Facepay when vehicle service is complete and ready for pickup. They simply charge customers with Checkout. These payments have no transaction fees, are secure, and contactless. Customers sign up when they receive a text or email when they drop off their vehicle. The team behind Facepay has extensive research experience in computational decision theory and optimizes for customer-centric experiences. Customers use it every day.
Our new conversion product deepens customer reach by inviting existing, active customers to pay with direct bank payments with our advanced link technology. Imagine moving just 40% of your customers from credit cards to pay same as cash. That’s what we do. In fact, 72% of customers prefer payments done this way (PYMNTS.com). The new product connects to the relational payment platform and offers an easy-to-use dashboard to measure and send text invitations to customers. Facepay integrates with all management systems and digital vehicle inspection software so there is no complicated setup or installation, and you leave existing software and credit card processors in place. Facepay disrupts them by charging a fixed, monthly subscription in lieu of high credit card transaction fees for these converted customers. It is important to get started now before rates increase next year.
Maylan Newton, of the Educational Seminars Institute, works closely with hundreds of shops and knows the impact of excessive rates has on profits. He says that “credit card fees result in the highest percentage of unrealized profits. Simple changes like Facepay have the ability to add 15% to the bottom line.” He goes on to say that “not many shops realize the amount of service work needs to be sold each day just to cover losses (credit card fees)”.
The company will host a 1-hour webinar on Wednesday, August 25th at 12 PM (Noon) Pacific / 3 PM Eastern with special guest Maylan Newton to discuss Simple Steps to Keep Your Record Profits. This Webinar is in a conversation format to allow dialogue with attendees on how to recognize and make the changes necessary to get ready for next year.
This new customer conversion product is available now free of charge as an upgrade to all business customers on the Relational Payments platform subscription plan.