Ever wonder why some dealerships are saving $10,000+ monthly while others get hit with compliance violations for their credit card practices? The answer lies in understanding the complex web of federal laws, state regulations, and card brand rules governing credit card surcharging in automotive retail.

Amberlee Allen, founder and managing partner of Dealer Merchant Services, reveals how her company grew from serving a single dealership to over 1,000 stores in just five years by specializing exclusively in automotive-compliant surcharging programs. This remarkable growth stems from a deep understanding of dealership operations and the unique compliance challenges faced by auto retailers when implementing surcharges.

The compliance landscape is intricate - surcharging remains illegal in three states (Connecticut, Massachusetts, and Maine), while others like Colorado cap rates at 2%. California dealers face special restrictions in F&I, and New York requires explicit price disclosures. The universal rule? Surcharges cannot exceed 3%, dealers cannot profit from them, proper signage is mandatory, and surcharging debit cards is strictly prohibited. Without specialized technology that automatically identifies card types, dealerships risk significant violations.

What separates successful implementations from problematic ones? Dealer-specific training, controller-friendly reporting with RO numbers and employee IDs, and support staff comprised of former dealership controllers who understand automotive accounting. As economic headwinds approach in 2025, including potential tariff impacts, implementing a properly structured surcharge program represents low-hanging fruit for dealers looking to protect their margins. The question isn't whether you can afford to implement compliant surcharging - it's whether you can afford not to.