The California Consumer Privacy Act (CCPA) is set to take effect on January 1, 2020, and enforcement begins a few months later, on July 1, 2020. The act was passed to give consumers who have been affected by a data breach, or are afraid of one, more control over their personal information. You may be affected if you do business there, or have customers, or even potential customers there, and it is likely that the effect will reach other states too.Read More
Tags: Check Guarantee
Recently, I saw a survey taken by CrediCards.com showing that large retailers offering new store credit cards have increased the interest rates on those cards substantially in the last few months. The article noted that this is particularly ironic as the Federal Reserve has lowered interest rates during this same period. This article demonstrates how merchants using CrossCheck services help consumers avoid debt traps.
This is what the survey found:
- The average APR on store-only credit cards has increased to 27.52%.
- The average APR for new co-branded store cards (that can be used at other stores) has risen to 23.39%.
- The average APR for all retail store cards is 26.01%.
Like other things in life, these store cards have a good side and a bad side. First, the good.Read More
Here at CrossCheck, we have been “all eyes and ears” in recent years over news about electric cars because our primary customer base is new car dealerships. Since we maintain an active dialogue with dealerships, we are well aware that CrossCheck and dealerships are fielding a lot questions about how we see the future of electric vehicles (EVs). Consequently, we thought it would be helpful to share a few opinions about how EVs will unfold over the next few years.
First, we pay close attention to the developments in this space, which is obviously critical to our business. Second, we want to “think like a customer” – our dealer merchants – and the dealers want to think like their customers – the car-buying consumers.Read More
Two years earlier, the card associations announced that transactions over $50 which were processed with a point-of-sale system would get discounted pricing. Early POS systems were priced at $900, which the average merchant could not afford. But something happened in 1982: Verifone rocked the merchant world with a POS terminal that cost only $125, the ZON. This changed everything.Read More
No matter what kind of car you drive, at some point you are going to need to buy auto parts. A modern car can have a few thousand parts, of which about a third are moving and will wear out over time. Most of the time, these parts would be considered normal wear and tear, but sometimes not. You will need to buy auto parts at either a franchise dealership or an auto aftermarket store. Let’s start by taking a look at what you will have to replace if you keep your car for a few years or longer. (See the related article, "Where to Buy Auto Parts for Modern Cars.")Read More
Tags: Multiple Check
Over the last few years, an interesting development has occurred in the business of selling new cars — a glut of off-lease vehicles has hit the market. Let’s take a look at what this means to dealers and consumers.
During the new vehicle sales bonanza of 2014 – 2016, records were set for annual sales, and surprisingly, about a third of those sales ended up as leases. By the end of 2019, an estimated 12 million low-mileage cars were coming off lease to create the glut of off-lease vehicles.
First, a recap of how leasing works. There is an up-front cash payment, and then you make a monthly payment for typically 24 or 36 months, with an option to do a buyout at the end of the lease. In theory, you are just paying for the depreciation during that time.Read More
Owning a car is expensive. The American Automobile Association (AAA) says it costs about $8,469 if you drive an average of 15,000 miles a year. But Nerdwallet gets more granular and they calculate a typical monthly cost as follows:Read More
Consumers think that selling new vehicles is the most important and profitable part of running a new car franchise, and that dealers make a lot of money on each unit sold. Yes it is important, but there is another part of the business that really pays the bills and keeps the lights on: the parts and service operation. This now comprises 49% of a dealership’s gross profit, up from 45% in 2012. You will hear this referred to as “fixed ops.” That’s a strange term; what does it mean?
Car dealers have historically called one part of the business variable and one part fixed.Read More
Tags: Auto Dealerships
A current study by the National Automobile Dealers Association (NADA) found that there is a serious shortage of car mechanics at dealerships, somewhere around 20,000 – 25,000 people. The trade group predicts that dealers will need another 46,000 more people by 2026. If you own or manage a dealership, this will keep you up at night, because today the parts and service area (aka “fixed ops”) comprises fully 49% of the dealership’s gross profit. It’s what keeps the lights on and pays the bills!Read More
CrossCheck started in the check guarantee business way back in 1983. Checks ruled at the time, and nearly every merchant accepted them at the point of sale. Back then, in fact, many merchants did not take credit cards at all. This was due, in part, to the high cost of interchange and because processing a card transaction was much more complicated than taking a check.
Merchants had to put a bulky multi-part carbon form in a knuckle-busting sliding imprinter (aka “Zip Zap machine”), and then sort out the forms and send them out for processing. There is a reason why it was called a “knuckle buster.” By comparison, taking a check was pretty easy, comfortable, and familiar to merchants, and consumers commonly wrote them for purchases at the store.Read More