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.
When you think about what makes the holidays a wonderful time of the year, perhaps images of spending time with loved ones, playing in the snow, and sipping hot chocolate come to mind.
Those activities are all part of the holiday spirit. But goodwill and charity also make the holidays a wonderful time of the year. And as an auto repair shop owner, you’re in a unique position to give back to your community.
There are different ways you can pay it forward—and if you end up liking how things go, you can make giving back a year-round activity, rather than just something you do during the holidays.
Were you looking for a vendor to reorder carbon copy auto repair receipt templates when you found this blog? Maybe you’ve already spent a few hours at your computer, searching for the right auto repair receipt template. But none of the templates you’ve seen looks right for your shop. It’s hard to find a perfect fit. You need a template that is fast to fill, inexpensive, flexible enough to work for any sale, and easy for you and your customers to understand. That’s a tall order.
But all too often, standalone templates fail to meet the complex business needs of modern auto repair shops.
You have already made positive changes toward getting organized by searching for and maybe even trying out a variety of new templates. But what if you could save time and improve accuracy with a system that did all the work of writing and tracking receipts for you?
Think about how you currently find the information you need for your receipts and fill them out. Maybe you use carbon copies. Maybe you type the receipts out. But you’re probably getting the information from your invoices, which themselves reflect estimates. That’s three documents to write per customer, which can quickly add up to a lot of time spent on paperwork.
Auto repair shop management systems are capable of populating receipts with payment information and prices from estimates and invoices in seconds to create consistent receipts and a more positive customer experience.
We know that change can be hard, but it’s worth it.
Let’s analyze some of the ways your current auto repair receipt templates might be holding you back and how an auto repair shop management system can improve your customer experience, simplify work at the shop, and lead to more business growth for you and your team.
Your locations don't have an ARO problem. They have a consistency issue.
If you run more than one shop, you have a number you probably don't look at often enough: the distance between your highest-ARO location and your lowest. That spread isn't a meaningless number. It's a diagnosis — and it's usually pointing at something you can fix this quarter.
Seeing one shop consistently post a higher average repair order (ARO) — the average dollar amount per repair order — while another lags behind, month after month, tells you something useful and fixable — that the two shops aren't actually running the same playbook.
When identified, an ARO gap points directly at where revenue is leaking and which location can improve its bottom line. Here's how to read it, and how to close that gap.
What ARO by location actually measures
ARO is your total sales divided by your car count. On its own, a single shop's ARO tells you how much revenue you capture per vehicle. Compared across locations, ARO becomes a relative measure. It shows you which shops are upselling the customers they already have, and which ones are letting opportunities walk out the door.
That distinction matters because car count and ARO are different levers. A location can be busy and still underperform on ARO. When two of your shops see roughly the same number of vehicles but post meaningfully different ARO, the busier-but-lower shop isn't short on demand — it's short on execution somewhere between check-in and checkout.
Why the same brand produces different numbers
When you standardize on one brand, one sign, and one set of prices, you'd expect performance to converge. It usually doesn't, and the reasons tend to fall into three buckets.
1. Inspections aren't consistent
The digital vehicle inspection is where most ARO is won or lost. A location that completes thorough inspections on nearly every car — with photos and clear findings — surfaces more legitimate work and gives customers a reason to say yes. A location that treats the DVI as optional, or rushes it, never puts that work in front of the customer in the first place. Shops that consistently attach more photos and findings to their inspections tend to post a higher ARO than shops that don't, because customers can see the work rather than just hear about it.
2. Estimating and pricing drift shop to shop
If one location prices a job from an up-to-date matrix and another builds estimates by memory or old habits, you'll see the difference in ARO. The same brake job, quoted two ways, produces two different repair orders. Multiply that across every ticket, every day, at every location, and small pricing inconsistencies become a large revenue gap.
3. Workflow and presentation vary by advisor
How work gets presented — whether declined jobs are captured for follow-up, if good/better/best options are offered, and the customer sees the inspection before the phone call — all of it moves ARO. When those steps live in one advisor's head instead of in a standard workflow, they leave when that advisor does.
How to compare ARO across multiple locations
A useful ARO comparison starts with removing the excuses you can measure. Before you conclude a location is simply in a weaker market, line the shops up on the metrics that feed ARO. When you compare ARO across multiple locations, look at five things:
What to compare across locations
Inspection completion rate: what percentage of cars get a full digital vehicle inspection (DVI) at each location.
Photos and findings per inspection: whether the shop shows customers the work or just describes it to them.
Close ratio: of the work presented, how much the customer approves.
Declined jobs recovered: whether declined work is followed up over time or lost.
Real-time reporting: whether you can see all of the above per location, side by side, without building a spreadsheet.
Inspection completion rate — what percentage of cars actually get a full DVI at each location?
Photos and findings per inspection — is the low-ARO shop showing customers the work, or just telling them about it?
Close ratio — of the work presented, how much gets approved? A low close ratio points at presentation, not demand.
Declined jobs — is the shop recovering declined work over time, or letting it disappear?
When you put those side by side, the ARO gap almost always resolves into a specific, coachable behavior at a specific location — not a vague "that store just isn't as good." The lowest-ARO shop with the weakest inspection numbers is usually your single, fastest opportunity because you're not trying to create demand — you're converting cars you already have.
You can't coach a gap you can't see
The hard part for most multi-shop operators isn't knowing that consistency matters — it's seeing the gap in the first place. When each location's numbers live in a separate system, a spreadsheet, or a manager's weekly recap, the comparison is always late and never quite apples-to-apples. By the time you notice a location has slipped, you've lost a quarter.
This is where running every shop on one platform changes the math. Tekmetric gives multi-shop operators multi-location control and real-time visibility: a portfolio-wide dashboard and shop-level reporting that track revenue, ARO, car count, and technician productivity across multiple locations at once. Instead of assembling the picture after the fact, you can see which location is drifting while there's still time to coach it.
"Now I can look at everybody at a glance. I can be in a different state, different city and know exactly what's going on in each location all the time. That's not something I had before." — Leroy Ingram, Ooroo Auto Care (MSO)
Visibility is only half of it. The same platform lets you standardize the inputs that drive ARO — DVIs, canned and Smart Jobs, pricing matrices, and discounts — across every shop, so your best location's playbook becomes every location's default rather than a secret one store happens to know.
"Seeing [a newly acquired shop] take the shift from what they've always used to Tekmetric and then grow profitability in the same four walls has been phenomenal. Some of them are just exponential." — Matt Schwab, Clutch Automotive (MSO)
Turning the gap into a plan
Once you can see the gap and its causes, closing it is a matter of focus. A few takeaways:
Start with your lowest-ARO, lowest-inspection location. It's the biggest lever to pull and the fastest move to make because the demand is already there.
Fix one input at a time. Get DVI completion up first; inconsistent inspections are the most common root cause of a lagging ARO.
Make your best shop the template. Standardize its workflows, pricing, and inspection process, then apply them everywhere instead of hoping each store reinvents them.
Watch the gap, not just the average. A rising portfolio average can hide one location sliding backward. The spread between best and worst is the number that tells you whether your standards are actually holding.
The gaps among your best and worst shops isn't a verdict on your locations. It's a map. It shows you exactly where the next dollar of ARO is hiding.
See the gap across every location
Tekmetric gives multi-shop operators multi-location control and real-time visibility into ARO, car count, and productivity across every store — plus the standardized workflows to close the gap.