For decades, truck parts distributors and repair shops have operated on thin margins while navigating ever-rising costs of labor, parts and technology.
One cost that often goes unnoticed until it shows up in the profit-and-loss statement is credit card processing. In the commercial truck aftermarket, many customers today pay their invoices or repair bills with credit or purchasing cards.
While this provides convenience, it also brings significant expense to the parts distributor or repair shop — often several percentage points on each transaction.
The growing cost of plastic
The average commercial card transaction fee typically ranges from 2.5% to 3.5%, depending on the type of card and how it’s processed. For a distributor selling $250,000 a month in parts, those fees can quickly add up to $7,500 or more per month. In a business where gross margins might hover in the teens, that’s a meaningful hit.
Repair facilities face similar pressures. A $4,000 engine rebuild charged to a customer’s credit card could cost the shop over $100 in processing fees. Multiply that by dozens of invoices per month, and it becomes clear why many owners see these fees as a tax on doing business.
Why B2B matters in processing
What many in the aftermarket don’t realize is that not all credit card processing is created equal. Card networks such as Visa and Mastercard have specific interchange categories for business-to-business (B2B) and level-two/level-three data transactions. By including additional details — such as invoice numbers, tax amounts, and line-item data — businesses can qualify for lower interchange rates that are designed for commercial spending.
For example, a standard commercial card transaction might clear at 2.8%, but the same transaction submitted with full B2B data could qualify at 2.1%. That difference of 70 basis points may not sound dramatic, but on high-ticket items or large volumes, it translates to thousands of dollars a month in savings.
The key is ensuring your point-of-sale system or gateway is properly set up to pass that enhanced data.
Passing fees through to the customer
In addition to optimizing rates, a major change in recent years is the ability for distributors and repair shops to pass along credit card fees to customers through compliant surcharge programs.
In most states, card networks now allow businesses to add a small fee (up to 3%) when a customer chooses to pay with a credit card. This is not the same as a “cash discount” program or a hidden markup; it’s a transparent line item on the invoice that informs the customer: If you choose to pay with a card, the fee is X; if you pay with ACH, check, or cash, there is no fee.
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For many B2B suppliers, this has been a game-changer. Customers paying on net-30 or net-60 terms via ACH continue to do so at no cost, while those who prefer the convenience or rewards of a credit card cover the associated expense. Importantly, these programs must be implemented correctly to remain compliant with card brand rules — meaning signage, invoice disclosures and caps on fee percentages all matter.
Industry experience and leadership
Much of this progress has been driven by long-standing relationships between payment processors and the trucking aftermarket.
American Payments Group, led by Peter Brickman, has been involved in the space for decades — supporting distributors, repair shops, and dealer groups. Its history of working with organizations like HDA Truck Pride underscores the important role payment processors play in helping the industry navigate cost pressures while upgrading technology to meet modern AR needs.
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That type of involvement reflects a broader trend: when processors understand the aftermarket business model, they can tailor solutions that not only cut costs but also fit seamlessly into how parts distributors and shops operate day to day.
Impact on customer relationships
Some aftermarket leaders worry about alienating customers by adding a surcharge. But experience has shown that in B2B, transparency is often respected. Distributors and repair shops who explain the rising cost of card acceptance find that most fleet managers or purchasing agents understand the trade-off.
After all, many of these same customers apply fuel surcharges, environmental fees, or administrative add-ons in their own industries.
What’s more, offering multiple payment options (credit card with fee, ACH with no fee) empowers the customer to choose how they want to pay. This shifts the decision from being a burden on the parts business to being a matter of preference for the buyer.
Practical steps for aftermarket businesses
For truck parts distributors and repair shops evaluating how to tackle payment costs, a few practical steps can make a difference:
- Pay attention to your rates and fees. Many businesses simply accept the fees that show up each month without questioning them. Review your merchant statements carefully, and identify your effective rate.
- Ask about B2B optimization. Ensure your processor or gateway supports level-two/level-three data so you can qualify for reduced interchange on commercial transactions.
- Consider a compliant surcharge program. If credit card fees are eroding your margins, investigate whether passing those fees through is right for your customer base.
- Educate your customers. Don’t spring a surcharge on them. Explain why it exists, what their options are, and how it allows you to keep your base pricing competitive.
The road ahead
As the commercial truck aftermarket continues to modernize — adopting e-commerce, online invoicing, and new AR technologies — the role of payments will only grow. Managing how customers pay is no longer just an accounting function; it’s a strategic lever for protecting margins.
Whether through B2B interchange optimization, compliant surcharge programs, or a mix of both, truck parts distributors and repair facilities have new tools at their disposal. The businesses that take the time to implement them carefully stand to reduce costs, improve transparency, and strengthen their bottom line — without sacrificing customer trust.
