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Brandes Elitch

Brandes Elitch is Director of Partner Acquisition for CrossCheck Inc. A certified cash manager and accredited ACH professional, he garnered a Master of Business Administration from New York University and a Juris Doctor from Santa Clara University.

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Recent Posts

Will the New California Consumer Privacy Act Affect Your Business?

Posted by Brandes Elitch on Wed, Nov 27, 2019 @ 11:31 AM

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.

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Tags: Check Guarantee

Merchants Using CrossCheck Services Help Consumers Avoid Debt Traps

Posted by Brandes Elitch on Wed, Nov 20, 2019 @ 07:45 AM

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.

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Tags: Auto Dealerships, Multiple Check

What Auto Dealerships Say About Electric Cars

Posted by Brandes Elitch on Wed, Nov 06, 2019 @ 10:44 AM

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.

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Tags: Auto Dealerships, Remote Deposit Capture (RDC)

Why Checks Are Still Relevant to ISOs

Posted by Brandes Elitch on Fri, Oct 25, 2019 @ 09:45 AM

CrossCheck, Inc. opened for business in 1983. In those days, almost every merchant accepted checks at the point of sale. Merchants that took credit cards were using a “knuckle-buster” with multi-part carbon forms to process a transaction. They put the card in the holder, ran the imprinter back and forth over it, extracted the forms, sorted them, and sent some to the bank and others to the processor.

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.

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Tags: Independent Sales Organization (ISO), Auto Dealerships

When to Buy Auto Parts for Modern Cars

Posted by Brandes Elitch on Fri, Oct 04, 2019 @ 07:45 AM

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.")

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Tags: Multiple Check

How the Glut of Off-lease Vehicles Affecting Dealerships

Posted by Brandes Elitch on Wed, Sep 11, 2019 @ 08:45 AM

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.

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Tags: Auto Dealerships, C.A.R.S.

Where to Buy Auto Parts for Modern Cars

Posted by Brandes Elitch on Mon, Sep 09, 2019 @ 07:45 AM

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:

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Tags: Auto Aftermarket, Auto Dealerships

Why Is Fixed Ops Important to a New Car Franchise?

Posted by Brandes Elitch on Tue, Aug 20, 2019 @ 07:45 AM

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.

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Tags: Auto Dealerships

The Shortage of Car Mechanics Can Affect Dealership Revenue

Posted by Brandes Elitch on Fri, Aug 16, 2019 @ 08:55 AM

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!

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Tags: Auto Dealerships, Auto Repair

CrossCheck’s Lifetime Residuals for ISOs Can Change Your Life

Posted by Brandes Elitch on Wed, Jul 31, 2019 @ 07:45 AM

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.

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Tags: Independent Sales Organization (ISO)