Pass-the-Fee Starts Here: Why Fixed Ops is the Best Launch Point

For dealerships implementing pass-the-fee or upgrading their payment systems, some of the most impactful changes start not at the front desk or showroom floor, but in the back-where margins are protected and customer loyalty is earned.

Launching in the Parts and Service departments – where transactions are frequent, lower ticket, and less emotionally charged – offers the highest-insight pilot environment. Done right, it becomes a proving ground for team readiness, customer acceptance, and long-term margin growth.

The Hidden Drain: Credit Card Costs in Fixed Ops

Across Canada, dealerships process roughly $260,000 per month in credit card volume, incurring an average of 2.3% in fees. That’s nearly $70,000 per year disappearing from gross margins.

With interest rates up and incentive budgets down, recovering margin without raising prices is more critical than ever.

Pass-the-fee programs let you reduce overhead without touching your pricing strategy. But launching storewide, without a plan? That can backfire. That’s why more top-performing dealer groups are starting in service – and scaling from there.

Why Parts & Service Is Your Safest Test Zone

Not all departments are created equal when it comes to payment changes. Customers buying a car are emotionally invested. But someone getting a brake pad replaced? That’s a practical transaction.

3 Reasons to Start in Fixed Ops:

• Volume over value: More transactions weekly mean more opportunities to educate, adapt, and refine.
• Lower emotional friction: Customers are cost-conscious, but less reactive when the transaction is routine.
• Natural incentive: Many service lane customers already pay by debit, avoiding fees without confrontation.

“We launched in parts and service first. After two weeks, the feedback and data made it an easy yes for the rest of the store.”
— Alberta GM

Dealership Spotlight: 15-Rooftop Group Saves $300K+

A 15-store automotive group in Canada was paying over $300,000 in card fees. With only $8.07M of their $57.61M annual volume processed via debit, their margins were under pressure.

The Solution: Rescue Payments deployed its turnkey surcharge program across all rooftops in under two weeks, with:

• Full white-glove training for all advisors and recon staff
• Fully compliant signage and receipt formatting
• No price inflation or POS disruption

The Results:

• Over $47,000 saved per rooftop annually
• 2.5x increase in debit usage (from $8.07M to $20.08M)
• Zero impact on CSI when messaging was framed as choice, not fee

The Psychology of Payment Acceptance

Here’s why the service lane works better for change:

• Let them know their options: When customers understand they have a choice-like paying with debit or cash instead-adoption feels empowering, not imposed. Clear signage and simple scripting help support that sense of agency.
• Transparency strengthens trust: Customers are less likely to push back when they feel informed and respected. By explaining the fee clearly and keeping it consistent, dealerships build long-term acceptance rooted in honesty, not surprise.
• Build confidence before going storewide: Rolling out the program in fixed ops gives your team time to get comfortable with scripting, signage, and handling questions-without the high stakes of front-end sales. It’s a controlled environment to train, refine, and succeed.

From Pilot to Standard: Setting the Stage for Storewide Rollout

Once a pilot proves successful in fixed ops, leadership often wonders: What next?

Here’s how to prepare your sales and F&I departments for full adoption:

• Assess readiness: Use the pilot as a benchmark. Did CSI hold? Did staff maintain script confidence? Did the payment mix shift sustainably?
• Extend training to new departments: F&I managers and sales teams benefit from scripting to explain the program. Role-playing and real-time objection handling will help keep the transition smooth.
• Adjust signage and receipt formatting: Ensure front-end environments maintain the same clarity and consistency your service bay established.

The benefit of this phased approach isn’t just savings – it’s cultural readiness. When the whole store speaks the same language about payments, friction drops and trust rises.

Pilot. Analyze. Expand.

A fixed ops pilot gives your team space to build confidence, refine language, and track performance. Rescue is with you every step of the way, offering hands-on support, training, and tools to ensure your rollout is smooth, compliant, and successful.

Phase 1: The Pilot (Week 1–2)

• Confirm leadership buy-in
• Finalize receipt formatting, signage, and staff scripts
• Train advisors, service writers, and recon staff
• Role-play common customer objections
• Soft launch in Parts & Service 

Phase 2: Feedback & Monitoring (Week 3)

• Track payment method shifts (credit to debit)
• Monitor for CSI impact or customer comments
• Reinforce messaging during huddles

Phase 3: Full Expansion (Week 4+)

• Review performance data and team confidence
• Adjust messaging where needed
• Expand to front-end departments if results are strong

This approach keeps risk low while generating real-world results to present to leadership.

Troubleshooting Common Pilot Hiccups

Start Where It’s Easiest to Win

When dealership teams are asked to support a new initiative, confidence is everything. And confidence is easiest to build in settings where:

• Staff already have regular, informed touchpoints with customers
• Advisors are used to educating, upselling, and handling objections
• Customers are already comparing payment types and familiar with debit preference

What to Say (and How to Say It)

A consistent script avoids confusion, protects CSI, and builds trust.

Customer: “What’s this extra charge?”
Advisor: “That’s just a small fee to help cover the cost of accepting cards. It only applies to credit-if you’d rather use debit or e-transfer, those are always fee-free.”

Framing it as a choice avoids confrontation and reinforces transparency.

Trust Is Built at the Checkout Screen

Modern dealerships are transforming payment from an afterthought into a strategic touchpoint.

Here’s what that looks like:

• Clear, customer-first signage
• Contactless and mobile payment options
• Transparent surcharge disclosures
• Digital invoicing and tap-to-pay links
• Fee-free alternatives like debit, e-transfer, or financing

When customers understand their options and feel in control, satisfaction scores rise.

It’s Not Just Smart. It’s Fair.

A well-run pass-the-fee program isn’t a burden, it’s a shift toward shared cost and customer empowerment.

So don’t start with your most visible, high-friction department.
Start where you can test, learn, and win.

Start in fixed ops. Get it right. Then scale with confidence.

FAQ: Launching in Parts & Service

Q: Will this hurt our CSI?
A: Not if it’s framed well. Most dealers see no CSI impact when the messaging is clear and customers are offered options.

Q: What if a customer pushes back?
A: Train your staff to explain the processor relationship and remind customers that debit and e-transfer are always fee-free.

Q: Can we enable this storewide on Day One?
A: Technically, yes. But we recommend a pilot first to build comfort and consistency across your team.

Q: How much can we expect to save?
A: On average, $47,000 per year per rooftop – that’s over $15 per service transaction.

Beyond the Bay: Building a Dealership of the Future

Payment experience is no longer just transactional – it’s relational. Dealerships that empower staff with transparent messaging and customers with clear options are doing more than saving money. They’re building loyalty, improving CSI, and turning every invoice into a brand touchpoint.

This isn’t just about margin recovery. It’s about modernization, trust, and long-term resilience.