Auto Parts & Car Accessories Merchant Accounts

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Last Updated on May 9, 2023 by Corepay

Auto part and car accessories merchant accounts are specifically tailored to online auto shops’ needs. At Corepay, we specialize in high-volume e-commerce merchant accounts and understand the ins and outs of the auto parts industry. 

While auto part stores may not fall into the high-risk category, many banks and processors consider them to be.

This article will explain why we offer some of the best auto parts payment processing solutions. We will also highlight everything to need to know about payment processing for the auto part industry and explain what to avoid when choosing a processing partner.

Corepay offers payment processing for the following auto parts/accessories:

  • Tires
  • Engines
  • Alternators
  • Brakes
  • Spark plugs
  • Headlights
  • Batteries

*These are the most common parts that are sold online.

Key Takeaways

  • The merchant category code for automotive parts is MCC 5533
  • Auto shops can be highly profitable
  • Most online auto parts stores are considered high-risk due to high-ticket items and chargebacks
  • Automotive part stores can typically expect limits between $25,000 and $50,000 for the first 3-6 months of processing

Race to the finish when it comes to applying for your auto parts merchant account with Corepay. 

  • 3-6 months processing history of statements
  • Voided check
  • Principal’s driver’s license
  • Proof of operating address
  • Company EIN document
  • Business plan – optional
  • Chargeback ratio
  • A functional and compliant website with login credentials

What To Look For In A Payment Processor For Auto Parts

An auto parts merchant account is a bank account established explicitly for business purposes where companies can make and accept payments for their auto parts business.

Why Are Auto Part Shops Considered High-Risk?

The number one reason that auto part stores are considered high-risk is chargebacks. While we will discuss several other factors, chargebacks are tough to deal with in this industry.

Let’s take a look at all of the reasons in detail:

  • Chargebacks
  • High-ticket transactions
  • Dropshipping with poor customer support


Chargebacks can be relatively high in the auto parts industry due to the following:

  • Compatibility Issues: Auto parts tend to have specific part numbers for particular vehicles. When the customer purchases the wrong product, they might become frustrated and opt to go directly to their bank for the dispute.
  • Installation Error: If a person breaks the part or breaks a different part of their vehicle during the installation, they may claim that the part was faulty.
  •  Fraud: With high-ticket items that are typically card-not-present, fraud is rampant. Stolen credit cards are often used in this industry when the proper security needs to be put in place.
  • Lousy Customer Service: When proper customer service isn’t in place, customers will call their bank and file the dispute instead of dealing with the merchant.
  • Customer Dissatisfaction: If the customer feels that the part works but isn’t doing its job effectively, they may file a chargeback.

Auto parts stores must implement effective quality control measures, provide accurate product information, offer clear return policies, and deliver excellent customer service to minimize chargeback occurrences and maintain positive customer relationships.


High-volume industries are often considered high-risk as the banks and payment processors get a feel for the type of volume. Banks also want to ensure there will be a manageable chargeback problem later down the line.

Showing banks and payment processors an overall outline of where you see the business going, how you plan to manage chargebacks, and an idea for volume may help the bank see you as a lower-risk merchant.


Dropshipping merchants are high-risk due to the nature of the business related to customer service. In addition, auto stores built with the dropshipping model can run into some problems down the line due to chargebacks.

Can Auto Stores Use Paypal For Payment Processing?

The rule of thumb is to choose a high-risk payment processor for anything high-volume e-commerce related. While Paypal is an excellent option for low-risk or low-volume, they typically don’t work with auto part stores that focus on online transactions.

Shopify For Auto Parts Stores

Shopify’s platform is excellent for auto part stores as you can quickly build a fast and effective storefront. That said, you may need to choose a high-risk Shopify payment processing option since Shopify doesn’t process high-risk merchants.

Why Choose Corepay

Regarding high-volume e-commerce, we understand exactly what it takes to bring your business to the next level.

With over two decades of high-risk payment processing, we can help merchants avoid costly chargebacks and payment processing mistakes. 

We offer the following for our auto parts merchants:

  • Fast Approvals Within 24-72 Hours, even for high-risk industries
  • Exceptional Customer Service, including direct access to Management Team
  • Risk mitigation with Rapid Dispute Resolution (RDR) by Verifi, 3-D Secure 2.1/ our partner product CB-ALERT
  • Low-risk rates as low as $99 per month and $0.05 per transaction
  • Waived fees (application, set up, annual)
  • Maximize approval ratios due to routing technology based on your target customer base within our proprietary payment gateway Netvalve
  • Traditional chargeback alerts by Ethoca and Verifi
  • High-risk rates as low as a blended 2.95%

Wrapping Up

Are you looking to take your auto parts store payment processing to the next level? With Corepay, you have a partner that understands e-commerce as well as anyone and knows how to deal with chargebacks related to CNP transactions.

Please fill out the application below to find out what Corepay can do for your business.

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