ECHO Press Releases

FOR IMMEDIATE RELEASE
April 11, 2001

ECHO Offers Electronic Check Conversion Via Personal Computer

Agoura Hills, Calif.-- Electronic Clearing House, Inc. (NASDAQ:ECHO) announced that merchants can now use their personal computer to process electronic check conversion (ECC) transactions through a new service provided by GO Software's PCCharge product.

"In January, 2001, ECHO announced its point-of-sale terminal-based ECC system that uses a Verifone Omni terminal as its controlling processor," Joel M. Barry, Chairman and CEO, reported.  "With this new service, any ECHO merchant can use his PC to effect an ECC transaction. Making all payment processing options available on multiple platforms continues to be an important goal for ECHO, thereby providing a top-notch state-of-the-art payment method to our merchant base."

 Referred to as XPRESSCONVERSION^sm, merchants can expedite their cash flow and reduce their check acceptance risks by using PCCharge Pro 5.0, the same software they have used for processing credit card transactions through ECHO for the past two years. 

Here’s how the electronic check conversion process works:

• The customer presents a paper check at the point of sale.

• The check is fed through a check reader where the magnetic ink character recognition (MICR) information is captured and the check image is stored.  The amount of the check is then entered by hand on the PC.

• The information is then electronically routed to the check verification subsidiary of ECHO, in Boulder, Colorado.  There, the check writer's account information will be verified through the National Check Information Service (NCIS) database, one of the nation's largest check verification databases.  Should the NCIS database identify a bad-check writer, the transaction will be declined.

• If the check is accepted, an authorization slip is printed on the PC printer for the check writer’s signature.  This allows the paper check to be immediately converted into an electronic transaction.  The check is then returned to the consumer stamped "void".

• The transaction data is routed to ECHO's check processing subsidiary in Albuquerque, New Mexico, where it is processed through the Federal Reserve's Automated Clearing House (ACH) settlement system.  Generally, funds are debited directly from the check writer's checking account within 24 hours and then credited to the merchant's account 24-48 hours thereafter.  Merchants can choose to have check writer funds debited later, to imitate the float often expected by check writers.

• Automatic re-submission of returned checks is provided and can be scheduled to occur at or near normal paydays when the check writer is more likely to have adequate funds.

 The merchant can access their check images online in case of returns or for marketing purposes.  All the merchant’s electronic check activity is also available at the same web site.  ECHO also provides on-line transaction reporting for its credit card and debit card merchants.

 In a related development, Network Commerce recently announced that ECHO’s credit card service has been certified for address verification and commercial credit card support on the PCCharge Pro service.

Electronic Clearing House, Inc. provides debit and credit card processing, check guarantee, check verification, check conversion, and inventory tracking to over 58,000 retail merchants and U-Haul dealers across the nation. 

To take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, you are hereby cautioned that this release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties.  Actual operations and results may differ materially from those expressed in the forward-looking statements made by the Company.

Media Contact:
Donna Rehman, Corporate Secretary
(818) 706-8999, ext. 3033 or corp@echo-inc.com

Press Releases are also available by calling (800) 233-0406 ext. 3033, or by email to corp@echo-inc.com

2001
2000

Electronic Clearing House, Inc. (ECHO)
28001 Dorothy Drive
Agoura Hills, CA 91301

Phone: (800) 233-0406
Fax: (818) 991-5973
E-Mail: echo@echo-inc.com
URL: http://www.echo-inc.com