Auto Transport & Brokers Merchant Account

Operational Overview

Auto transport brokers sell a service they don't personally perform — the broker arranges the shipment and collects payment, but an independent carrier actually moves the vehicle, and that split is a constant source of consumer confusion when something goes wrong. A customer whose delivery runs late or whose vehicle arrives with new scratches often has no idea the broker and the carrier are separate businesses, so the chargeback lands on whoever's name is on the card statement — the broker — regardless of who was actually responsible. Brokers are federally required to register with the FMCSA under 49 CFR Part 371 and to maintain financial security, historically a $75,000 surety bond or trust fund (BMC-84 or BMC-85), specifically because Congress recognized how often brokers collect money upfront for services a third party ultimately performs. The deposit-before-pickup model that's standard in this industry compounds the payment risk: money changes hands before the carrier is even assigned, let alone before the vehicle moves, so if pickup slips or a carrier falls through, the broker is holding a customer's money for a service that hasn't started. Gray Merchants is a payment ISO providing merchant services to auto transport brokers, with underwriting built around forward-delivery timelines and the broker/carrier liability structure this industry runs on.

Underwritten Features & Solutions