How to Protect Your Auto Repair Shop from Chargebacks

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Read time: 3 min

Chargebacks are something that no shop owner wants to deal with.

Your business relies on big-ticket sales, and chargebacks on those sales can squeeze your margins.

When a guest goes through their bank or credit card company to get a refund, whether it’s because they were unhappy with the repair or not, it can leave shop owners in a bind where they might have to eat the cost of the labor, parts, and profit.

There are some cases where business owners can make a case against the chargeback, but it can be a lengthy process and most banks and credit card companies will side with the cardholder who’s making the complaint.

Protecting your business from chargebacks doesn’t start when the payment is processed, nor does it end with being reimbursed for a single chargeback. The best way to protect your business from chargebacks is to establish clear, open communication with your guests and adhere to a consistent and secure payment process.

Always Get Your Guests’ Consent Before Doing Work

When your service advisors take guests through the repair order, they should listen carefully to what the client wants; service advisors can never be too careful.

If that means spending some extra time to review the repair order with the guest, it’s time well spent.

A little more time spent on the front-end can save you a lot more time on the back-end. Once the RO is thoroughly reviewed, you can get either written or verbal consent for the work and the cost. It’s worth keeping in mind that it’s easier to document written consent.

Shop Tip: Use the Courtesy Inspection to Guide the Approval Process.

Using a shop management system like Tekmetric where the guest can see the courtesy inspection and click through and select the work they want and the work they want to put on hold can set clearer guidelines for both the guest and the service advisor.

Establish a Transparent Relationship with Your Guests

Providing excellent customer service is good practice for any auto repair shop, but it also goes a long way toward preventing chargebacks.

Let your guests know that you’re committed and dedicated to fixing their problem, even if that means taking their vehicle back into the shop if the guest is not 100% satisfied.

If you make it clear to your guests that they can come back to you about any concerns, they are far less likely to go to their bank or credit card company first. And it’s better to do a little extra work to ease the mind of your guest than it is to give away an entire repair order for free or go through legal hassles.

Shop Tip: Set a Clear and Easy Return Policy.

If your shop doesn’t already have one, consider establishing a clear and easy return policy and make it visible to guests via signage or with messaging on repair orders.

Simple policies such as “If you’re not satisfied, call us, and we’ll make it right” can go a long way in terms of letting guests know they should go straight to you if there’s something wrong.

Use an Address Verification System (AVS)

Sometimes, chargebacks happen because a guest used someone else's card or because of a clerical error. Times like these are when safe-checks built into your payment process come in handy.

If you’re processing payments over the phone, be sure to use an address verification system. An AVS ensures that the cardholder on the other end is who they say they are. Address verifications are crucial to dispute claims with a bank or credit card company when you’re unable to acquire an in-person signature.

Tekmetric’s payment processing platform, Tekmerchant, supports AVS, and we recommend using it to secure all over-the-phone payments.

Keep a Record of All Transactions

In order to protect yourself from any unreasonable chargebacks, keep a record of all approved work, signatures, and work completed, with images if possible.

Shop Tip: Use a Software Management Tool that Automatically Tracks Transactions.

Tekmetric makes record keeping and retrieval easy because it stores all repair orders and completed jobs within the system and allows for easy search of completed work. Technicians and service advisors can even upload images of repair work to track all completed repairs.

Other Best Practices When Processing Payments

Along with AVS, there are several other useful practices that can help your shop avoid chargebacks due to minor payment processing errors:

  • If you call for authorization, record the authorization code, date, time, credit representative’s name, and transaction dollar amount authorized.
  • Always enter the exact agreed-upon amount. Do not round up or down. Leave no discrepancies whatsoever on price between you and your guests. If the price must change due to parts, labor, or additional work that was not found during the inspection process, always get documented consent from the guest before adding more work and changing the price.
  • If a transaction is entered incorrectly, make sure that it is completely voided prior to reprocessing. This will help to avoid duplicate transactions.
  • When submitting sales receipts to your bank, only submit one copy. Don’t send a copy to two different banks. Multiple copies of sales receipts can result in duplicate billing and chargebacks.
  • For card-not-present transactions, collect the CVV or CV2 card verification numbers (the three to four-digit security code on the back or front of your guest’s card).

Avoiding Chargebacks Takes a Holistic Approach

Mistakes happen, even at the best shops. Building a relationship with guests is key to avoiding chargebacks.

If your guests trust that you care and something does go sideways, they'll talk to you about it, and you will have an opportunity to work it out.

Auto repair shops also benefit from having solid shop management and payment processing system that make it easy to prevent chargebacks long before the sale.

👉 Ready to grow your automotive business? [Book a personalized Tekmetric Demo Here]

FAQ

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Tekmetric, a Houston-based leading auto repair technology company, was named the winner of a silver Stevie® Award in the Achievement in Growth category in The 20th Annual American Business Awards®.

Tekmetric was nominated in the Achievement in Growth category for the company’s tremendous growth and expansion in the last year.

The American Business Awards are the U.S.A.’s premier business awards program. All organizations operating in the U.S.A. are eligible to submit nominations – public and private, for-profit and non-profit, large and small. 

Co-founded in 2016, Tekmetric offers an all-in-one SaaS business management system for auto repair shops. As the auto repair industry’s leading cloud-based solution, Tekmetric has grown from just a few customers to more than 3,000 shops across the U.S.

In the last year alone, Tekmetric’s revenue has increased by more than 115%, a reflection of its role as a trusted industry solution for increasing shop efficiency.

“Tekmetric strives to deliver premier service and value to auto repair shop owners who partner with us, and this unmatched level of care wouldn’t be possible without the outstanding team we have built,” said Prasanth Chilukuri, Co-CEO and Co-Founder of Tekmetric.

“To experience an expansion that more than tripled to more than 95 talented professionals from across the U.S. and Europe has been an incredible journey. We are honored to have been recognized in the Stevie for our continued growth and leadership in the auto repair industry.”

More than 230 professionals worldwide participated in the judging process to select this year’s Stevie Award winners.

Nicknamed the Stevies®® for the Greek word meaning “crowned,” the awards will be presented to winners at a gala ceremony at the Marriott Marquis Hotel in New York on Monday, June 13. Tickets are now on sale.

“We are so pleased that we will be able to stage our first ABA awards banquet since 2019 and to celebrate, in person, the achievements of such a diverse group of organizations and individuals,” said Maggie Miller, president of the Stevie Awards.

In the automotive repair industry, efficiency and organization are key to keeping customers happy and maximizing productivity. While traditional tools have always been the foundation of a mechanic’s work, modern software solutions like parts inventory management software are revolutionizing the way shops operate. By integrating software with traditional tools, mechanics can streamline repairs, reduce downtime, and focus on delivering exceptional service.

Here are four ways auto parts inventory software can transform your shop into a well-oiled machine.

1. More efficient repairs

One of the biggest challenges mechanics face is delays caused by missing or misplaced parts. With inventory management software, you can always have a clear view of your inventory, ensuring the parts you need are in stock and ready to use. This eliminates the frustration of searching for or reordering parts mid-repair, expediting the entire process.

Tekmetric’s inventory management software gives you real-time updates on stock levels, so your team can quickly locate and retrieve parts when needed. By integrating this system with traditional tools, you can keep your repairs moving faster, improving turnaround times and customer satisfaction.

4 Reasons your shop needs auto parts inventory software.

2. Clear organization

A disorganized shop can lead to wasted time, miscommunication, and errors. With car parts inventory software, you can create a digital inventory catalog, ensuring every part is accounted for and can be easily located. This streamlined organization makes it simple to track high-use items and plan for reordering.

Traditional tools like diagnostic equipment and repair manuals can be paired seamlessly with software features like Tekmetric’s parts ordering system, which ensures your shop has the tools and parts needed to tackle every repair. Combining digital and physical resources helps mechanics stay organized, reduce clutter, and maintain a professional work environment.

3. Less administrative work

Manual inventory management takes valuable time away from what technicians do best: repairing vehicles. By adopting auto parts inventory management software, you can significantly reduce the time spent on administrative tasks. Tekmetric automates inventory tracking, reordering, and reporting, freeing up mechanics and shop owners to focus on delivering quality service.

Automation also reduces errors in inventory counts, minimizing costly mistakes and ensuring your team always has the parts they need. With less time spent on paperwork, your shop can prioritize what matters most: getting customers back on the road quickly and safely.

4. Better customer experience

Auto parts inventory management software is designed to make your shop more efficient, organized, and customer-focused. By providing real-time updates, automated tracking, and seamless integration with traditional tools, Tekmetric helps shops stay ahead of the competition.

Closing Thoughts

For mechanics and shop owners, integrating modern tools like car parts inventory software with traditional equipment isn’t just an upgrade—it’s essential for staying competitive. By streamlining repairs, improving organization, and reducing administrative work, inventory software enables your shop to operate more efficiently and deliver better service to your customers. Invest in the tools that make a difference and see the results for yourself.

Auto Parts Inventory Software: 4 Reasons Your Shop Needs It

December 13, 2024

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Should auto repair shops focus on social media marketing?

How many people do you know who spend a substantial amount of time on Facebook? Or hours watching YouTube? How can your business take advantage of how easy it is to get in front of potential customers?

Social media became the leading online activity in 2013 and has grown ever since. According to a Backlinko study, there are 5.24 billion global social media users that average over 2 hours a day on social media platforms. The top three social media platforms are Facebook, YouTube, and WhatsApp.

Chances are that your potential new customers are spending more time online than anywhere else. Is your auto repair shop doing everything it can to reach them?

Average social media user growth compared year over year.

Source: https://backlinko.com/social-media-users

Social media channels are key for boosting your shop's reputation and make a big difference when it comes to driving referrals and repeat customers. Engaging your local community will keep you top-of-mind as a reliable, trustworthy place for your guests to get their vehicles repaired.

10 effective social media strategies for auto repair shops

Social media channels are one of the most powerful forms of word-of-mouth advertising; more and more people go on social media to make purchasing decisions as well as socialize with friends and family members.

By having a strong social media presence, it makes it easier for the people you serve to share information about your shop, whether that be promotions, insightful posts, or even fun photos that your auto shop shares. But there are so many ways to engage the people in your service area on social media that it can be tough to know where to start.

To make things easier, here are ten ways that your auto repair shop can use Facebook, Instagram, YouTube, LinkedIn, TikTok, Twitter and other channels to interact and socialize with potential customers and loyal guests.

1. Think local

It’s important to remember that social media channels—especially Facebook—are places where people often go to talk about a shared experience. A lot of times, those experiences are local. Whether it’s how the sports teams in town are doing, where people like to go, or upcoming events, the bulk of many online social media conversations is still driven by what’s happening in our own communities.

Businesses are a big part of that conversation. How often have you seen friends or family members post a question on their feed like “Know any good restaurants in town?” People also post public reviews and recommendations of the places they go and the businesses they use on Facebook, Google, Yelp, and other channels.

While it may not be direct marketing, starting a dialogue about what’s going on in your community may be a good way to start some conversations. Are there any new happenings? Are there charitable or uplifting things that people are doing in your community? You can even talk about the local driving experience, highlighting best roads to take during certain times of the week and any ongoing construction projects that drivers may want to be careful when diving past for the sake of their vehicle.

These are just a few of the things that you can address on your Facebook page to get guests talking and make your shop more approachable.

2. Local charities and events

Looking for ways to play a bigger role in your community? Consider using your social media pages to focus on other businesses, events, and charitable activities in your town. While this may seem to take the focus off of your shop and services, it shows your neighbors and guests that you care about the well-being of your community at large.

Example social media post.

For example, Casey’s Automotive in Chantilly, Virginia promotes and partners with the local charity, Ellie’s Hats, an organization that raises funds to support children who have been diagnosed with cancer. Every year, Casey’s and Ellie’s Hats hold an annual Spring Fling car show where the kids get to help hand out prizes for different cars and people get custom-built trophies made out of car parts. By partnering up, Casey’s is not only helping make the world better by living out their values but also engaging the community and gaining potential future referrals.

3. Teach your followers something cool or valuable

Showing guests how to do something is a great way to give them something of value, establish leadership, and build trust. A good auto shop owner can always appreciate guests who take care of their vehicles between visits, so showing guests how to take care of their car may be worth sharing and demonstrate that you truly care about your guests’ vehicles.

Tek-Tip: Use video.

Consider using videos. They are visually engaging, which is good for teaching something, and they have a strong track record of driving web traffic in search engines and on social media. According to Marketingland, 62% of Google universal searches include video; per Hubspot, social video posts garner 48% more views than other kinds of posts. Christian Brothers Automotive posts regular video tips on their Facebook page, like this one about tire safety.

In addition, some guests may find things that are simple for technicians and other experienced vehicle owners, such as performing an oil change or rotating tires, to be difficult or more of a hassle than they want to take on, and will instead bring the job to you.

Tek-Tip: Consider your audience.

If your shop helps the average daily driver, you may be able to teach them something basic like how to refill their wiper fluid or change a tire. But if your shop services clients who already know the basics, you may want to show them something more exciting and sophisticated like:
-How we installed a 10 point roll cage in a Jeep Liberty.
-Lift kit tipsHow to install a winch and/or lightbar to an off road vehicle
How to reset the oil light on particular vehicles

4. Show gratitude and understanding

Guests are the backbone of any auto repair shop. Without them, you wouldn’t be in business. Show your guests that you value them! Sometimes this is better done in person, but if a guest is particularly loyal, or you provided them with some interesting, exciting repair work, you may want to ask them if you can feature them on social media and thank them for coming in.

If someone leaves a 5 star review on Facebook, Google, Yelp or somewhere else, or says something positive about your business, be sure to thank them for taking the time to do so. If the review was not made on a public site, and you got it from a customer by email or text, you should ask them permission to share their review before posting it on social media.

If the review was not made on a public site, and you got it from a customer by email or text, you should ask them permission to share their review before posting it on social media.

Either way, it’s like a trophy; show it off!

Example social media post.

Here’s an example of Excluservice in Rockville, Maryland showing off a five-star review on their Facebook page.

5. Respond appropriately to poor reviews

The best way to handle negative reviews (and chargebacks, for that matter) is to prevent them from happening in the first place by providing excellent customer service and communicating clearly with your customers. That said, there is always the chance that something will slip through the cracks or that someone will post something because they’re having a bad day. Not all negative reviews are within your control.

Most channels allow you to respond to guests. Talk to your service advisors and technicians to find the specific circumstances of the complaint being made so you have all the facts before responding.

Then, respond in a timely manner; you don’t want to let a review linger for days before responding.

When you do respond, stay courteous and professional, no matter how rude or out-of-line the customer’s review is. If you are able to encourage them to take the conversation offline by calling you, do so. Sometimes, a little attention will encourage the customer to remove their negative review.

If not, at least the public can see that you paid attention and took every possible step to meet their needs. If the review is entirely fabricated, you may be able to challenge it through an official appeal process on the site; Yelp, for example, allows you to flag a review for removal.

It’s also helpful to be proactive about gathering positive reviews so they drown out the negative ones and lessen their impact on both your potential customers’ shopping experience and your overall average business rating on the review site.

6. Highlight seasonal holidays & events

The holidays are a natural part of the yearly newscycle. They’re also fun for a lot of people, and a time when families and friends come together to celebrate something important. By highlighting holidays and using proper hashtags, your shop can gain more attention, inspire action, and be a part of the community's seasonal activities.

Don't forget to use the proper hashtags for seasons and events in your posts. These can help gain attention, but only if you use hashtags that show up in news feeds!

Some holidays move around on the calendar, but here are some dates and hashtags to use for certain holidays and events that take place over the course of the year:

January

  • 1st, #NewYearsDay
  • 16th, #GetToKnowYourCustomersDay
  • 20th, #MLKDay
  • 25th, #ChineseNewYear (1/25 - 2/8)

February

  • 4th, #WorldCancerDay
  • 14th, #ValentinesDay
  • 17th, #KindnessDay (Random Acts of Kindness Day)
  • 22nd, #NationalMargaritaDay (Don’t drink and drive!)
  • 25th, #MardiGras (Same as above)
  • 27th, #NationalRetroDay

March

  • 6th, #EmployeeAppreciationDay
  • 8th, #InternationalWomensDay
  • 17th, #StPatricksDay
  • 23rd, #NationalPuppyDay
  • 25th, #WaffleDay
  • 28th, #EarthHour
  • 30th, #NationalDoctorsDay

April

  • 1st, #AprilFools
  • 15th, #TaxDay
  • 16th, #HighFiveDay
  • 22nd, #EarthDay

May

  • 4th, #MayThe4thBeWithYou (National Star Wars day)
  • 5th, #ThankATeacher (National Teacher’s Day)
  • 10th, #MothersDay
  • 12th, #NursesDay
  • 15th, #ChocolateChipDay
  • 21st, #AccessibilityAwarenessDay
  • 25th, #MemorialDay

June

  • 5th, #DonutDay
  • 6th, #HigherEducationDay
  • 8th, #BestFriendsDay
  • 12th, #NationalAutomotiveServiceProfessionalsDay
  • 14th, #FlagDay
  • 15th, #NativeAmericanCitizenship
  • 21st, #FathersDay
  • 30th, #SMDay (Social Media Day)

July

  • 1st, #TellAJoke (International Joke Day)
  • 4th, #IndependenceDay
  • 7th, #WorldChocolateDay
  • 14th, #BastilleDay
  • 17th, #WorldEmojiDay
  • 19th, #NationalIceCreamDay
  • 26th, #ParentsDay
  • 30th, #InternationalDayOfFriendship

August

  • 15th, #NationalRelaxationDay
  • 19th, #WorldPhotoDay
  • 26th, #NationalDogDay

September

  • 5th, #InternationalDayOfCharity
  • 6th, #ReadABookDay
  • 7th, #LaborDay
  • 21st, #DayOfPeace
  • 29th, #NationalCoffeeDay
  • 30th, #InternationalPodcastDay

October

  • 4th, #NationalTacoDay
  • 16th, #NationalBossDay
  • 31st, #Halloween

November

  • 3rd, #ElectionDay (2020)
  • 11th, #VeteransDay
  • 13th, #WKD (World Kindness Day)
  • 26th, #Thanksgiving (2020)
  • 27th, #BlackFriday (2020)
  • 28th, #ShopSmall (Small Business Saturday, 2020)
  • 30th, #CyberMonday (2020)

December

  • 1st, #GivingTuesday (2020)
  • 3rd, #IDPD (International Day of Persons with Disabilities)
  • 9th, #ChildrensDay
  • 10th, #HumanRightsDay
  • 25th, #Christmas
  • 31st, #NewYearsEve

Tek-Tip: Stay ahead of the calendar.

Since holidays come at the same time every year, you can work them into your social media marketing and your marketing calendar as a whole. Planning out your holiday tactics in advance gives you the time to study consumer trends and behavior as well as outline your campaigns so you don’t have to think on the fly. Map the holiday calendar in advance for less stress, more insights, and stronger returns.

Tek-Tip: Don’t forget to include local events!

If your service area has a local festival or event (like the Bluebonnet Festival in Burnet, Texas or the Art Car Parade in Houston), don’t forget to highlight them with the proper hashtag, too! You may even consider reaching out to the event organizers to help sponsor the event.

7. Social media contests

Everyone loves a raffle, and everyone loves a gift card. Gift card lotteries are a simple way to encourage people to like your posts, share your posts, and provide you with a good review.

We often see auto shops use monthly gift card drawings as a way to continually drum up engagement. It’s also a good way to work in some general education for your customers.

For example, you can make the gift card amount match the exact amount of an oil change to remind customers that they need to get that done to take the best possible care of their vehicle.

Photo contests are another way to get more exposure and traffic to your social media page. You can pick a topic and encourage guests to post or submit their photos on social media and tag your auto shop. Create an award, like a service certificate or gift card, and pick a winner!

8. Like, share, and comment

It’s not enough to just post content and hope people engage with it. Remember to like, share, and comment on your own posts and on other people’s, too, when it’s appropriate.

Sometimes reminding page visitors to like, share, and comment on your own posts is all that’s needed to encourage them to engage.

Here are some example posts that you can try on your own feed:

  • "Like us and share your experience on social media and get $5 off!"
  • "First 5 people to share and comment get 15% off their next visit."
  • “We’re proud to support first responders. Share this post if you are, too.”
  • “We’re always trying to improve our guest experience. What can we do to improve our service to you and our community? Tell us in the comments.”

9. Diversify your channels

Between Google My Business, Facebook, YouTube, Instagram, TikTok, and even your shop’s website, there are a lot of places where potential guests may go for information. Posting on all platforms may seem complicated at first, but you can always reshare content. For example, if you post a blog or new service page on your site, be sure to share it on Facebook and Twitter. Did someone leave a good Google review? Post about it on Facebook and thank them! Just upload a YouTube video? Share it on Facebook!

Tek-Tip: Use online marketing management tools like Hubspot, Shopgenie, or Hootsuite.

Sometimes when you’re using multiple social media channels, it is best to view them all in one dashboard. Tools like Hubspot help you schedule posts, view post engagement, see analytics, and manage conversations all from a single dashboard. Some tools also help manage reviews, which can be beneficial as its own process for you and your shop. Different tools have varying capabilities and vary in complexity and pricing, so find the one that is right for you.

Some social media sites, like Facebook, have built-in scheduling tools that could make it easier to schedule posts without using an outside platform.

Also remember it’s okay to start small; you don’t have to use every single social media channel. If you find a channel does not drive leads by engaging customers or driving search traffic to your website or social media pages, don’t use it.

You are not obligated to use every social media network and may find that it’s only worth using one or two for your business.

10. Have fun!

Probably the most important tip of them all: have fun. Remember, social media is typically a place where people go to engage with socially engaging content. Content that is too serious may make your feed look stale, and make it difficult for potential customers to relate to your brand.

Example social media post.

If you can capture your technicians, service advisors, and even yourself having a good time, it breaks the ice and may entice people to do more business at your shop. We’ve seen shops post pictures of team building events as well as pictures that show off their goofy side; the team at Casey’s Automotive has done a good job of posting lighthearted content and photos of their team having a good time, and it has helped them gain more than 2,000 followers.

On May 4th, you can have your team pose for a lightsaber battle. October 16th is National High Five day, so be sure to post some good high-five pictures and emojis on your Facebook page. 🙏 👏

Example social media post.

Social media post ideas for auto repair shops

Customer-Centric Content

  • “Car of the Week” Feature – Showcase an interesting repair job or classic vehicle that came through the shop.
  • Customer Spotlight – Share a short story or testimonial from a happy customer (with permission).
  • Before & After Visuals – Post transformation photos of a repair or detailing job.
  • Behind-the-Scenes Tours – Give a video or photo tour of your shop and introduce your team.

Educational & Helpful Tips

  • Seasonal Maintenance Reminders – Inform customers about what their vehicle needs in winter, summer, etc.
  • “Tech Tip Tuesday” – A weekly snippet of car care advice from your technicians.
  • Warning Signs 101 – Teach customers how to spot common issues (noises, leaks, dashboard lights).
  • Myth-Busting Posts – Tackle popular car care misconceptions.
  • Checklist Downloads – Share helpful PDFs or graphics (e.g. "Maintenance reminder checklist").

Interactive & Engaging Posts

  • “Guess the Problem” Game – Post a photo or video clip and have followers guess the issue.
  • Vote for your favorite car - Create a poll asking followers to pick their favorite car.
  • Customer Q&A Sessions – Invite followers to drop questions in comments for your techs to answer.
  • Throwback Posts – Share old shop photos or stories from the early days.

Trust & Transparency Builders

  • Meet the Team Posts – Personal bios, favorite tools, or “a day in the life” of a tech.
  • Explainer Videos – Short clips that walk through common repairs or shop processes.
  • Tool Spotlight – Show off unique or advanced tools you use and why they matter.
  • Customer Review Highlights – Turn your Google or Yelp reviews into branded quote graphics.

Fun, Culture & Promotions

  • Shop Culture Moments – Celebrations, birthdays, pets in the shop, or Friday playlists.
  • Contests & Giveaways – Oil change giveaways, “Tag a friend who needs a tune-up” style promos.
  • Local Business Shoutouts – Cross-promote other small businesses in your area.
  • Milestone Celebrations – Anniversaries, number of vehicles serviced, or team achievements.

Final thoughts

Remember, engaging guests on social media is just one way to improve your auto repair shop. There are other important marketing strategies to utilize such as search engine optimization, Google Ads, email marketing, and more. Lastly, always focus on creating an amazing customer experience to encourage customers to share their experience with others.

Social Media for Auto Repair Shops: The Complete Guide

April 1, 2024

Read time: 3 min

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