It’s no secret that dealers fork out huge percentage fees to take customer card payments. High value payments equal high fees. But what if there was another way?
Introducing a new, alternative payment method for automotive dealers, Open Banking. With Open Banking dealers can bypass the card networks entirely, meaning transaction costs are dramatically reduced.
How exactly does Open Banking help dealers reduce costs?
Traditional payment solutions often come with high costs, such as 1.5% - 3.5% fees on card transactions. For a typical car purchase this is hundreds of pounds in lost revenue. Then, there’s the hidden cost of manual bank transfers, which can be riddled with human error, often resulting in misplaced money and lost sales.
Open Banking powered account-to-account payments allow dealers to avoid high-cost card fees and error-ridden manual bank transfers, as the payment goes from the customer's bank account to the dealer’s account within seconds, bypassing the need for a card payment or manual bank transfer, resulting in huge savings. Pendragon, for example, save 73% on transaction fees compared to card payments.
How secure is Open Banking?
Card payments unfortunately come with the risk of fraud, and with the UK labelled as the ‘fraud capital of Europe’, dealers need to be doing all they can to eliminate the chance of losing stock to a fraudulent customer. Manual bank transfers require online banking or mobile banking, and whilst they are secure to set up, they can often open up the possibility of incorrect and missent payments through manual input errors.
Open Banking payments require biometric authentication, such as faceID or fingerprint, and bank-level security within a customer’s banking app, making it significantly harder to commit fraud. This gives dealers the confidence that the customer is who they say they are, reducing the risk of fraud, human error, chargebacks and the costs associated with lost stock.
Add Open Banking to your dealership with Vyne Pay with bank
We’ve worked hard to build the most intuitive and easy to use Open Banking powered account-to-account payment solution. Vyne Pay with bank enables dealers to offer fast, seamless and secure payment experiences while reducing costs and boosting cash flow.
With cost-saving at the forefront of everyone’s mind, we’re thrilled that we've helped leading automotive retailer, Pendragon, to save 73% on transaction fees verses card. Martin Dobson, UK Divisional Finance Director at Pendragon: “We’re saving 73% on transaction fees with Vyne. This enables us to retain cost allowing us to continue to invest in innovation through digital, omnichannel experiences.”
Saving on transaction fees isn’t the only pain point Vyne aims to tackle, which is why we’ve recently launched a new solution; no-code payment links, allowing dealers to send flexible, fast, low-cost payment links with no integration needed. This solution removes the need to take high-cost card payments with manual bank transfer, by instead sending quick, easy payment links directly to customers' inboxes. Not only do payment links increase security with direct account-to-account payments, but they also boost cashflow through instant settlement.
Ready to streamline your customer experience while reducing costs?
We’re continuously expanding our relationships in the automotive industry to make it easy for dealerships to add Pay with bank to their existing DMS, website platforms or through no-code payment solutions. Get in touch today to set-up a demo call with our sales team.