Dealer Merchant Services was recently acquired by Priority Payments. On today’s episode of Driving Solutions, Dealer Merchant Services Founder and Managing Partner Amberly Allen discusses the acquisition and what it means for the company’s clients going forward.
DMS has been rapidly growing, particularly as surcharging and payment methods evolve. The company had been seeking a more “sophisticated” payments partner that could provide its dealer clients with better technology and greater scalability. Priority Payments is a publicly traded entity with $140 billion in processing power and 1.2 million merchants. The company has 50 individuals on its compliance team and a full in-house legal staff that will be a vital resource to support and protect dealers.
Allen says Priority Payments was the right fit because the company brings the level of technology, scale and compliance expertise that dealers increasingly need. The partnership gives dealers the ability to work with a publically held payments processor that is held to a higher standard. With a full compliance and legal team, Priority Payments will help ensure dealers are processing payments correctly with reduced liability. The company is also held globally, expanding DMS’s footprint into new markets such as Canada.
"We want to enable our dealers to give their customers what they're looking for as far as different payment methods."
Priority Payments also aligns with DMS’s high-touch customer service philosophy. Allen notes that he team has grown by prioritizing dealer support and that level of service will remain intact.
The partnership expands DMS’s scope and allows for a more modern payments ecosystem across the dealership. Priority Payments brings new capabilities across payables, treasury, and cash flow optimization. Allen said the goal is to elevate the entire payments function inside the dealership, which she described as an area that remains “a bit antiquated” in automotive retail.
One of the biggest immediate impacts will be helping dealers navigate the recent Visa and Mastercard change known as the Commercial Enhanced Data Program, or CEDP. The rule requires dealerships with large wholesale parts or fleet accounts to provide additional transaction data to access better rates. Without the required data, dealers are already paying more than they were earlier this year. DMS and Priority Payments will help dealers build the necessary technology and minimize both cost and liability.
Even for dealers who are not ready to surcharge, the added processing power allows DMS to secure better pricing by going direct to the card brands. Priority is now the fourth largest merchant acquirer in the country, which Allen said gives DMS “jet fuel” to scale and bring more value to dealers.
The partnership will also modernize how customers transact at the dealership. Consumers increasingly want to pay through digital wallets and apps such as Venmo, PayPal, Cash App, and various crypto products. Crypto in particular has seen rapid adoption, with four trillion dollars in circulation. With Priority’s technology, DMS can now enable more digital wallet and cryptocurrency options while giving dealers modern tools to receive funds and streamline payables.
Allen emphasized that the transition will feel seamless for existing clients. The high-touch DMS service model will remain the same, enhanced by additional tools, faster integrations, and more sophisticated support options. Priority Payments’ standards and technology focus will give dealers improved efficiencies as they adapt to new payment requirements and digital consumer expectations.
Looking ahead, Allen said the team is already working to expand integrations across motorsports, marine, heavy trucking, and other segments. They recently added California, which required stringent compliance reviews due to the state’s strict surcharge rules. With new associations and partners coming onboard, Allen said the company is working to evolve “the entire ecosystem of all things money movement” for dealers.
The acquisition positions Dealer Merchant Services for significant growth, with Allen noting that her team now has the tools and scale to “bring more sophistication to the entire suite of the CFO” across any business with an engine.
