The $100K Secret Why Dealer Credit Card Fees Keep Climbing Every Year | Industry Spotlight
In this episode of the Industry Spotlight, joining host Sam D'Arc are Eric Cohen, CEO of Merchant Advocate, and Cole Frankman, Owner/Operator of Frankman Motors, to discuss why credit card processing fees keep climbing year after year and how dealers can uncover the hidden increases buried in their merchant statements. Eric reveals that 80 percent of dealerships he reviews are being overcharged by 20 to 25 percent, and explains why the fee never really stops rising: the sales rep who set up the account earns a cut of every transaction for as long as the dealer stays a client. Cole shares how a routine expense review turned into a two-month rabbit hole before an independent audit uncovered over six figures in annual savings, all without switching processors or changing equipment. The conversation exposes why dealers rarely read past page one of their statements, and what that costs them. This episode of the Car Dealership Guy Podcast is brought to you by Merchant Advocate. Topics: 06:35 Fees Were Never On His Radar. 08:30 He Tried AI To Fix It. 09:15 Audits Aren't Just For Mega Dealers. 11:15 80% Of Dealers Overpay. 12:45 Processors Raise Rates Anytime. 16:35 Hidden Fees Saved Six Figures. 18:45 Dealers Pay High Fees Despite Low Risk. 21:30 Processors Keep Coming Back. 23:40 Visa Doesn't Set Rates. 26:45 Statements Are Deliberately Confusing. 28:40 Non-PCI Fees Cost $500 Monthly. 30:15 Contingency Aligns Incentives. Merchant Advocate - Merchant Advocate helps dealerships uncover and eliminate unnecessary credit card processing costs through independent, contingency-based audits. Our experts identify hidden fees, pricing errors, and optimization opportunities—all without requiring dealers to switch processors, replace equipment, or disrupt operations. Learn more at https://merchantadvocate.com/ Check out Car Dealership Guy’s stuff: For dealers: CDG Circles ➤ https://cdgcircles.com/ Industry job board ➤ http://jobs.dealershipguy.com Dealership recruiting ➤ http://www.cdgrecruiting.com Fix your dealership’s social media ➤ http://www.trynomad.co Request to be a podcast guest ➤ http://www.cdgguest.com For industry vendors: Advertise with Car Dealership Guy ➤ http://www.cdgpartner.com Industry job board ➤ http://jobs.dealershipguy.com Request to be a podcast guest ➤ http://www.cdgguest.com Car Dealership Guy Socials: X ➤ x.com/GuyDealership Instagram ➤ instagram.com/cardealershipguy/ TikTok ➤ tiktok.com/@guydealership LinkedIn ➤ linkedin.com/company/cardealershipguy Threads ➤ threads.net/@cardealershipguy Facebook ➤ facebook.com/profile.php?id=100077402857683 Everything else ➤ dealershipguy.com
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