How to Protect Your Auto Repair Shop from Chargebacks

Read time: 3 min

Add as a preferred source on Google

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

Introducing Recommended Campaigns

Tekmetric Marketing now builds ready-to-send campaigns. The message is written and the audience is selected. All that's left is to review, personalize, and send.

Most shop owners know the fastest way to fill this week’s bays is by bringing back customers who already trust them — the ones whose vehicles you serviced months ago but haven’t seen since. Re-engaging existing customers is one of the most effective ways to generate new repair orders.

The problem is finding the time to do it. Figuring out what to send, who to send it to, and when to send it almost always loses out to the car on the lift or the customer standing at the front counter

That's where Tekmetric Marketing's Recommended Campaigns come in.

Instead of starting with a blank page, Tekmetric Marketing does the heavy lifting for you. It analyzes your shop’s data and recommends campaigns that are ready to go. The audience is selected, the message is drafted, and all that’s left is for you to review it, make any changes you’d like, and send.

No blank screen. No guesswork.

Just a campaign ready to help bring customers back.

How It Works

Recommended Campaigns automatically surfaces ready-to-send campaigns tailored to your shop using the information Tekmetric already knows — your customers, previous campaigns, location, and seasonality.

You’re always in control.

Review the recommendation, personalize the message so it sounds like your shop, adjust the audience if you’d like, choose when to send it, and you’re done.

What used to take an hour staring at a blank screen can now be done in just a few clicks.

How Fox River Tire & Auto Uses Recommended Campaigns

Like most shops, Fox River Tire & Auto in St. Charles, Illinois, wants to stay connected with customers and bring them back when the time is right. But deciding what campaign to send, then building it from scratch, takes time most shops don't have.

Recommended Campaigns gives Tammi and her team a starting point instead of a blank page. They review the recommendations, edit the suggested content to fit their brand, and send with confidence.

"Recommended Campaigns provide an excellent launchpad for re-engaging with our customers. Instead of starting from scratch, we refine the suggested content to fit our brand and send it with confidence. The process is straightforward, time-saving, and always delivers."

— Tammi Vest, Business Manager, Fox River Tire & Auto

From Reports to Results

Recommended Campaigns is part of a much bigger shift in where Tekmetric Marketing is headed.

For years, marketing platforms have been good at showing you what already happened: campaign reports, open rates, clicks, and dashboards. That’s valuable, but it still leaves the work on you.

Tekmetric Marketing is evolving beyond reporting. Increasingly, it’s helping you decide what to do next, and doing more of the work for you.

You’ve already seen this with Recommended Review Responses. When a customer leaves a Google review, Tekmetric drafts a thoughtful response for you to review and approve.

Recommended Campaigns is the next step.

Instead of simply telling you that you should market to your customers more often, Tekmetric Marketing puts a campaign directly in front of you — already drafted, targeted, and ready to send.

Your marketing should keep working even while you’re heads-down under a hood.

One Year of Continuous Innovation

Since launching Tekmetric Marketing in the fall of 2025, thousands of shops have made it part of how they attract new customers and bring existing ones back.

We’ve also continued investing in the platform based on feedback from shops like yours.

Recent additions include:

Rich text and custom links in every email so you can create more engaging emails and link directly to booking pages, review sites, and promotions. Bold a headline, organize services into a list, and drop in links to your booking page, review site, or a promotion, in both campaigns and automated emails like review requests and service reminders.

Recurring blocks for your calendar for lunch breaks, holidays, staff meetings, and other recurring events. Easily add recurring lunch blocks, staff meetings or holidays to your calendar with a few clicks. No more appointments booked over your team events without you knowing.

Smarter marketing-source tracking on appointments and ROs: Automatically associate appointments and repair orders with the latest marketing campaign or automation that reached the customer. When a customer books after getting a message, the marketing source pre-fills with the most recent campaign or automation sent to them, so attribution is accurate without the guesswork.

Recommended Review Responses, helping you respond to Google reviews in just a few clicks.

Every one of these improvements started with feedback from shop owners looking for simpler, smarter ways to grow their business.

Keep it coming.

Already using Tekmetric Marketing?

Head to Marketing → Campaigns to see what's recommended for your shop and send your first campaign in just a few clicks.

New to Tekmetric Marketing?

See how Tekmetric Marketing helps shops bring customers back with online booking, automated reminders, review generation, and Recommended Campaigns.