
Accepting credit card payments when selling used cars is the key to having a profitable used car dealership business. However, getting a used car dealer merchant account is not easy. This is because this industry is considered high-risk by payment processors and banks as there are usually high ticket merchant account and high chargeback rates. Low-risk credit card processing companies don’t accept or approve used car dealership businesses when they apply for a merchant account. This means you have to get a high risk merchant services account.
Why Are Used Car Dealers Considered High Risk?
There are many industries that are considered high risk due to their nature. Used car sales is one of them. The primary reason why used car dealers are considered high risk is because they are uniquely susceptible to fraud. There are variety of fraud risk factors inherit to used car sales; it’s simply the nature of this business. The susceptibility of chargeback and complaints is often the primary factor when measuring risk and unfortunately, used car dealers are highly susceptible to these. Not to mention they have high-ticket averages and high returns making them target for stolen credit card carriers as well as other fraud attempts. The tremendous amount of financial transactions inherent to used car sales also increase the potential for fraud.
Choosing Used Car Dealer Merchant Services
Only a high-risk merchant account provider understands how important it is for your used car dealership business to offer flexibility in payment options. That’s why choosing the right one is crucial. So, when choosing a used car dealer merchant account provider, it is recommended that you look for the following features:
- Customizable Account Plans: A reliable high-risk merchant account provider does not just offer a one-size-fits-all plan, but it also offers various customizable options. The payment processor should offer all-inclusive, fair account plans in used car sales payment processing.
- No Application Fees: Choose a payment processor that is equipped to prevent fraud and combat chargebacks. You should also look for other benefits like minimum cash reserves, next day funding, and no application fees.
- Reliable Customer Staff: An experienced and reliable customer staff is a prerequisite for a high-risk used car dealer merchant account. The used car sales industry demands a combination of card not present and in-person payment solutions if a business needs to stay on the top.
What Documents Are Needed for Used Car Dealer Merchant Accounts?
The process to apply for a used car dealer merchant account is the same as applying for any high-risk payment processing service. You simply need to find a reliable used car dealer merchant account provider and fill out their online application. Following are the prerequisites of applying as well as the documents/information that you will need to provide:
1) Chargeback ratio below 2%
2) Valid Photo ID, such as driver’s license
3) EIN and Valid SSN
4) Three months of the most recent bank statements
5) Voided Business Check or a bank letter
6) Three month’s processing statements, if processing
Building a steady customer base and continuing to grow profits are not the only challenges in a used car dealership business. You also need to find a reliable way to accept credit card payments. Getting a high-risk used car dealer merchant account is the answer, apply now.
About The Author

Mark Sands, co-founder of High Risk Merchant Account LLC, an authoritative expert in the high risk merchant account space. Mark has decades of experience in the payment industry & enjoys writing on entrepreneurial related topics.
