Best Payment Solutions for Auto Dealerships in 2026

Trust in car dealerships is at an all-time high. Car buyers’ confidence in dealers has surged from 44% in 2023 to 69% this year, and buyers who trust a dealer are more likely to bring them repeat business. This shift comes as the car buying process becomes more transparent, thanks to digital tools like auto loan calculators, car comparison sites, and dealer-finding platforms.

But there’s one area where many dealerships haven’t caught up: payment processing. While digital tools have transformed transparency in sales, payment systems often remain stuck in the past, quietly draining profits through expensive card processing fees. Traditional card payment processing typically costs between 1.5% and 3% per transaction. On high-value vehicle sales, those fees add up fast.

Modern buyers expect seamless digital experiences at every touchpoint, including payments. Here’s a closer look at the best payment solutions for auto dealerships in 2026, and why it might be time to rethink how you handle car dealership payment processing.

Why payment processing matters for dealerships

Auto dealerships deal with high-value transactions, complex payment structures involving deposits and trade-ins, and customers who increasingly expect seamless digital experiences. Traditional card payment processing typically costs between 1.5% and 3% per transaction, which adds up fast when you’re processing £25,000 to £50,000 vehicle sales.

For a dealership selling 50 vehicles a month at an average price of £25,000, card fees at 2% would cost £25,000 annually. That’s pure profit walking out the door, and it doesn’t have to be that way.

Comparing the best payment solutions for auto dealerships

Payment solution	Transaction fees	Settlement time	Best for	Key considerations
Atoa (Pay by Bank + Cards)	Up to 50% less than cards	Instant / Next day (seconds)	UK dealerships prioritising margins and cash flow	• Pay by Bank & card payments in one platform • No chargebacks on Pay by Bank payments • FCA-authorised• Integrates with Xero, QuickBooks, Sage
Stripe	1.5% + 20p (UK cards)2.9% + 20p (online)	2-7 days	Tech-savvy dealerships with online sales	• Higher fees for international cards • Good for online checkout • Developer-focused
Worldpay	0.75%-2.75% (negotiable)	2-5 days	Established dealerships with high volume	• Complex pricing • Monthly fees • Requires contracts • Better rates at scale
SumUp	1.69% (in-person)2.5% (online)	Next business day	Small independent dealers	• Simple pricing • Lower hardware costs • Limited enterprise features
PayPal	2.9% + 30p (domestic)Up to 5.9% (international)	3-5 days	Dealerships needing familiar payment option	• High fees • Currency conversion charges • Chargeback fees (£14) • Customer trust

1. Atoa: The cost-effective choice for UK dealerships

For dealerships looking to reduce payment processing costs without sacrificing customer choice, Atoa offers both Pay by Bank and traditional card payments in a single platform. This means you can offer customers the payment method they prefer while maximising your savings.

Pay by Bank: Instead of paying card fees that can reach up to 3% per transaction, Atoa’s account-to-account payments lets customers pay directly from their bank account through their banking app. This dramatically reduces processing costs.

Card Payments: For customers who prefer to pay by card, Atoa also provides card payment processing, so you don’t need to juggle multiple payment providers. Everything is managed through one system.

Why Dealerships Choose Atoa:

Significant cost savings: Save up to 50% compared to traditional card processing fees when customers choose Pay by Bank. On a £30,000 vehicle sale, that’s the difference between paying £600 in card fees or a fraction of that amount.

Instant settlement: Funds land in your dealership account within seconds with Pay by Bank, not days. Better cash flow means you can move faster on stock purchases, manufacturer payments, and daily operating expenses.

Zero chargebacks on bank payments: Open banking payments are authenticated directly through the customer’s banking app with bank-grade security. Eliminating the chargeback risk can be particularly problematic for high-value vehicle transactions.

Seamless customer experience: Customers simply approve the payment in their banking app using Face ID or fingerprint. It’s as familiar as checking their balance, with the same security they trust for banking.

Flexible payment options: By offering both Pay by Bank and card payments, you give customers choice while optimising your costs. Many customers are happy to use Pay by Bank when they understand it’s secure and instant.

Atoa is fully authorised by the FCA and ISO 27001 certified, meeting the same security standards as banks. It integrates seamlessly with accounting software like Xero, QuickBooks, and Sage, so your reconciliation stays streamlined regardless of which dealer management system you use.

2. Stripe: For tech-forward dealerships

Stripe has become popular with businesses that prioritise online sales and technical flexibility. For dealerships with strong online checkout processes, Stripe offers robust developer tools and supports various payment methods including Apple Pay and Google Pay.

Pricing: UK card transactions cost 1.5% + 20p for in-person payments, while online transactions are 2.9% + 20p. International cards incur higher fees.

Best for: Dealerships with significant online sales and technical resources to manage integrations. Works well if you’re building custom checkout experiences.

Considerations: Settlement takes 2-7 days, and fees increase for premium and international cards. Technical setup can be complex compared to simpler solutions.

3. Worldpay: The traditional enterprise option

Worldpay is one of the UK’s most established payment processors, offering tailored solutions for businesses of all sizes. For larger dealership groups processing significant volumes, Worldpay can negotiate competitive rates.

Pricing: Fees typically range from 0.75% to 2.75% depending on your volume and negotiation, but expect monthly service fees and contracts.

Best for: Established dealership groups with consistent high volume who can negotiate better rates and need comprehensive payment solutions across multiple locations.

Considerations: Complex pricing structure, monthly fees, and typically requires 12-18 month contracts. Better suited to larger operations that can leverage volume for discounts.

4. SumUp: Simple solutions for independent dealers

SumUp offers straightforward, contract-free card payments with affordable hardware. It’s become popular with smaller businesses that want transparent pricing without complex contracts.

Pricing: 1.69% for in-person payments, 2.5% for online transactions. Card readers start at £25.

Best for: Small independent dealers who prioritise simplicity and don’t want monthly fees or long-term contracts.

Considerations: Higher transaction fees than some competitors, and dealerships are classified as “restricted business types” requiring approval. Limited advanced features for larger operations.

5. PayPal: The familiar option

PayPal remains one of the most recognised payment options, and many customers trust it. For dealerships already processing online enquiries and deposits, PayPal offers familiarity.

Pricing: 2.9% + 30p for domestic transactions, but international payments can reach 5.9% after cross-border fees. Currency conversion adds another 3-4%.

Best for: Dealerships needing a payment option customers already trust, particularly for online deposits or enquiries.

Considerations: Fees add up quickly, especially for international customers. Chargeback fees are £14, and you don’t get transaction fees back on refunds. Settlement takes 3-5 days.

What matters most in dealership payment systems

When evaluating car dealership payment processing options, consider these factors:

Total cost: Look beyond headline rates. Factor in fixed fees, international charges, chargeback fees, and currency conversion costs.

Settlement speed: Faster access to funds improves cash flow. The difference between instant settlement and 7-day settlement can impact your working capital significantly.

Integration capabilities: Does it work with your existing systems? Whether you’re using a DMS, standalone accounting software, or other business tools, seamless integration saves time and reduces errors.

Security and compliance: Is the provider properly regulated? FCA authorisation, PCI compliance, and ISO certifications matter when handling customer payments.

Customer experience: Will your buyers find it easy and trustworthy? A smooth payment experience can be the difference between completing a sale and losing it.

Payment flexibility: Can you offer customers multiple payment options? Some customers prefer bank payments, while others want to use cards. The best automotive payment gateway gives you both.

The future of dealership payments

The automotive retail market is evolving rapidly. Digital-first buyers expect instant responses and seamless transactions, but dealerships still need to protect margins in an increasingly competitive market. With F&I income supporting dealership profitability more than ever, every area of cost savings matters.

For UK dealerships serious about protecting margins while delivering smooth customer experiences, modern payment solutions like Atoa offer a genuine alternative to expensive card-only processing. By combiningPay by Bank savings with traditional card payment options, you get the best of both worlds: cost efficiency and customer choice.