How to Protect Your Auto Repair Shop from Chargebacks

Read time: 3 min

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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.

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FAQ

Thought Leadership

The Best Software for Auto Repair Shop Owners Who Want Grow Their Business

January 20, 2023

Read time: 3 min

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.