Car Dealership Guy Podcast

The Margin Problem Dealers Rarely Audit: Credit Cards (And 3 Practical Fixes) | Eric Cohen, CEO at Merchant Advocate

Jan 6, 2026
Guest
Eric Cohen
In this insightful discussion, Eric Cohen, CEO of Merchant Advocate, dives into the often-overlooked world of credit card processing costs for dealerships. With decades of experience, he reveals that 60–70% of dealers are overpaying and explains which fees are actually negotiable. Eric shares effective strategies to audit statements, uncover hidden charges, and reclaim margins without sacrificing growth. He emphasizes the importance of transparent practices and offers concrete steps for dealers to keep costs in check.
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INSIGHT

Processing Markups Drive Dealer Costs

  • Credit-card pricing is driven by processor markups and sales reps, not just Visa/Mastercard costs.
  • Dealers often accept confusing bills and miss negotiable markup and hidden fees.
ADVICE

Negotiate Without Switching Processors

  • Keep your existing processor and negotiate markup and hidden fees instead of switching.
  • Use a specialist who shares savings so improvements compound with minimal operational disruption.
ADVICE

Hunt Made-Up And Non-PCI Fees

  • Audit statements for made-up line items like transaction risk, settlement funding, and non-PCI fees.
  • Remove or dispute these padded processor fees and answer required PCI surveys to eliminate non-PCI charges.
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