Driving Down Credit Card Processing Fees

Client Overview

Jeff Schmitt Auto Group is a network of nine dealerships serving the greater Dayton, Ohio area, representing brands such as Chevrolet, Nissan, Mazda, Mitsubishi, Cadillac, and GMC. Led by president Jay Schmitt, the group has built a strong reputation for exceptional customer service, repair, and maintenance across its dealerships. Despite their success, Jeff Schmitt Auto Group faced a significant challenge with credit card processing fees—a notoriously complex and opaque area of expense management.

“I’ve honestly never dealt with any industry that has such a lack of transparency… It’s next to impossible to tackle on your own.”
— Jay Schmitt, President of Jeff Schmitt Auto Group

The Challenge

While Jay Schmitt and his team had a solid relationship with their existing payment processor, they struggled to determine if their rates were truly fair. Every attempt to compare invoices or negotiate rates led to frustration:

• Complex Fee Structures: Renaming and shifting fees made it difficult to track monthly changes or compare year-over-year costs.
• Embedded Systems: Switching processors was never an option and would have been disruptive given the dealership’s integrated Dealer Management System (DMS) and solid relationship with their credit card processing vendor.
• Perceived Lack of Options: Despite repeated attempts to negotiate or pit vendors against one another, clear, consistent savings never materialized.
• Time and Expertise Constraints: Managing multiple dealerships leaves little time for dissecting the ever-changing, technical details of payment processing fees.

“None of my normal tactics worked. Every time I tried to do my own analysis or compare one year’s statement to the next, it just got more confusing.”
— Jay Schmitt

VeriFee Solution

Referred by a fellow business owner, Jay initially worried that partnering with an outside firm might complicate matters further or strain the good operational relationship with his current processor. However, VeriFee’s transparent, performance-based approach alleviated those concerns:

1. No Upfront Cost
   VeriFee’s fee is a percentage of whatever savings they secure—if they don’t save the client money, the client pays nothing.

   “It’s simple: they take 50% of whatever they save you. Since I hadn’t been able to save any more on my own, it was a no-brainer.”

2. Quick & Streamlined Data Collection
   Jay simply uploaded recent credit card statements and introduced VeriFee to the processor’s point of contact. VeriFee’s analysts and proprietary tools handled the rest.

   “My total time involved in this process was less than an hour.”

3. No Operational Disruption
   VeriFee worked directly with the existing payment processor—no new hardware, software changes, or staff retraining.

   “Our processor stayed the same, our hardware stayed the same, our internal processes all stayed the same.”

4. Ongoing Monitoring & Course Correction
   After negotiating lower rates, VeriFee continued to review statements. When the processor attempted to implement different (higher) pricing than agreed upon, VeriFee immediately caught the discrepancy and secured a credit for Jeff Schmitt Auto Group.

   “I won’t say I was surprised after our first statement review because I was warned… but it just bothered me how the processors do business.”

The Results

• 60% Reduction in Non-Interchange Fees
  By focusing on the negotiable portion of the processing cost, VeriFee secured significant savings for Jeff Schmitt Auto Group—nearly 60% off non-interchange-related fees.
• Annual Savings of $60,000
  This substantial reduction translates to about $60,000 in yearly savings.
• Minimal Effort Required
  Aside from a brief introductory call and uploading statements, Jay estimates he spent under one hour on the entire initiative.
• Immediate Issue Resolution
  VeriFee’s monthly monitoring caught a pricing discrepancy early, allowing Jeff Schmitt Auto Group to receive a prompt credit from the processor.

“VeriFee did exactly what they said they would do, exactly when they said they would do it. And if I can save $60,000 with an hour of my time, that’s a pretty easy decision.”

Key Takeaways

1. Substantial Savings Without Switching
   Jeff Schmitt Auto Group kept the same processor and in-store processes, avoiding any technical or operational hassles.

2. Transparency in a Complex Industry
   VeriFee provided clarity in a notoriously confusing space, confirming Jay’s suspicions that hidden fees often creep back in without diligent monitoring.

3. Minimal Client Involvement
   VeriFee’s expertise meant Jay and his team stayed focused on running the dealerships.

   “Everything, at least for my business, is an equation of time and money. I put very little time in—and realized quite a bit of monetary savings.”

4. No-Risk Partnership
   VeriFee only earns a share of the savings they deliver, guaranteeing positive ROI.

5. Timely Corrections
   Continuous monitoring proved invaluable when the processor attempted to implement unapproved fees—VeriFee intervened immediately and secured a credit.

The Bottom Line

Through a transparent and data-driven approach, VeriFee delivered a roughly 60% reduction in non-interchange fees for Jeff Schmitt Auto Group, equating to $60,000 in annual savings. With virtually no disruption to existing operations, Jay Schmitt and his team secured meaningful cost reductions in an area they previously believed was impossible to optimize further.

“If I could tell you that you could save $60,000 by spending an hour of your time, I don’t think there’s anybody that would say no to that. What do you have to lose?”
— Jay Schmitt