Dealership Surcharge Program: 3% on Credit, Never on Debit
A dealership surcharge program adds a 3% service fee to credit card transactions in your service drive and F&I office — disclosed at the terminal, accepted by the customer, and never applied to debit, prepaid, or gift. It’s built to run inside CDK Drive, so every payment posts straight to the RO with no re-keying, and we handle every compliance requirement for you.
A Dealership Surcharge Program, Explained Plainly
A 3% fee on credit transactions only — disclosed at the terminal, accepted by the customer, and it never touches debit.
Here’s what changes at the counter: when a customer pays by credit card, the terminal adds a 3% service fee and shows it before the sale closes. They accept it with one tap, same as any other purchase. Pay by debit, prepaid, or gift card instead, and there’s no fee at all — that transaction runs exactly like it does today.
Why dealers run this: most stores pay 2.5–3.5% on every credit card transaction, money that comes straight out of margin before a car is sold or a repair order is closed. A surcharge program shifts that cost to the card users who create it, instead of spreading it across every transaction the dealership processes.
The short version
Credit card customers pay a 3% service fee, shown at the terminal, accepted with one tap. Debit, prepaid, and gift cards are never surcharged — you keep paying 1.05% on those. Nothing changes about how your team runs a sale.
The 3% at the Drive
Every step happens inside CDK Drive — no side terminal, no separate app, nothing extra for your advisors to learn.
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Click Pay in CDK Drive
The charge fires straight from the RO screen
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Terminal Wakes Instantly
The amount lands on the terminal in real time
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Card Type Auto-Detected
Credit or debit identified before the tap completes
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Credit Prompts, Debit Passes
Credit shows the 3% fee for one-tap accept; debit continues with zero surcharge
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Auto-Posts to the RO
Reconciles straight into CDK Drive, no manual entry
This is the same reconciliation flow built for CDK integration — for the wider five-step service-lane walkthrough beyond surcharging, see how it works.
Compliance Handled, Not Hoped For
Card-brand rules, state law, signage, disclosures — your team makes zero compliance decisions at the counter.
| What’s required | Who handles it |
|---|---|
| Visa & Mastercard surcharge rules | Built into every transaction, automatically |
| State law — legal in 47 states (all except Connecticut, Maine, and Massachusetts) | We track the state, not your front desk |
| Required signage & receipt disclosures | Provided and installed with your terminals |
| Debit, prepaid & gift card exclusion | Enforced by the terminal, not staff memory |
The same PCI-validated P2PE terminals that enforce the debit exclusion also encrypt every card at the point of sale — see how the security side works.
What the 3% Actually Moves
Take a store running $400K a month in card volume, 60% credit / 40% debit, at roughly a 3% blended cost today.
| Monthly volume | Today (~3% blended) | With the surcharge program |
|---|---|---|
| Credit — $240,000 | $7,200 in fees | $0 — the customer covers the 3% |
| Debit — $160,000 | $4,800 in fees | $1,680 at 1.05% |
| Processing cost | $12,000/mo | $1,680/mo |
That store keeps $10,320 a month — $123,840 a year — an 86% cut. Heavier credit mixes push it past that; that’s where “up to 90%” comes from.
Will Customers Push Back?
Every customer keeps a no-fee path — that choice is what protects your CSI, not luck.
| The worry | What actually happens |
|---|---|
| Customers won’t want to pay a fee | They keep a no-fee option every time — debit, cash, or check. Card users are choosing the surcharge, not stuck with it. |
| It’ll feel like a surprise at the counter | The fee is shown and accepted at the terminal before the sale closes — never added to the receipt after the fact. |
| Service fees aren’t normal at a dealership | They’re normal everywhere else — restaurants, government offices, and contractors all add one at checkout. |
Straight Answers on Surcharging
In most places, yes. Surcharging is legal in 47 states — all except Connecticut, Maine, and Massachusetts. The surcharge laws by state table has every state's status and cap. We handle the compliance requirements that come with it, including required signage and receipt disclosures.
They pay with debit, cash, or check instead — no surcharge applies to any of those. There’s always a no-fee path; the customer chooses which one they want.
The 3% covers the cost of accepting the card — it isn’t dealership revenue. Because it covers that cost directly, your credit card processing cost goes to zero. You still pay 1.05% on debit.
Correct — debit, prepaid, and gift cards are never surcharged. You pay 1.05% on those, and your blended cost varies with your card mix. The terminal enforces the exclusion automatically; it’s never left to staff to remember.
Nothing. We provide the required signage and receipt disclosures, and the terminal enforces the debit exclusion on its own. Your team never has to make a compliance call at the counter.
See It Live
Watch the 3% Run Inside CDK Drive
Book a demo: the program working on a live repair order, straight answers on your state and your card mix, and no pressure. 100+ franchise dealerships nationwide · 20 years in payments · Houston, TX.
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