ECHO Press Releases

FOR IMMEDIATE RELEASE

ELECTRONIC CLEARING HOUSE (ECHO) AND TOUCHNET INFORMATION SYSTEMS TO OFFER VISA POS CHECK SERVICE FOR INTERNET AND POINT-OF-SALE TRANSACTIONS

Agoura Hills, Calif., January 22, 2003 – Electronic Clearing House, Inc. (NASDAQ:ECHO), a leading provider of electronic payment services, today announced that TouchNet Information Systems, Inc. will be partnering with ECHO to introduce the Visa POS Check Service program to its customers in the higher education market. 

The Visa POS check acceptance system provides direct online access to consumer demand deposit accounts for authorization, similar to credit and debit card transactions. TouchNet will be the first company to offer this new service to the higher education market for checks initiated over the Internet and at the point of sale.

The new service will significantly help TouchNet customers reduce risk and processing costs associated with accepting checks by utilizing Visa’s real-time authorization network, VisaNet. Other existing check acceptance systems typically rely on a variety of historical databases or negative files to electronically process check transactions. Using TouchNet solutions, checks accepted via the Internet and/or at the point of sale can be immediately converted into electronic items. These items obtain immediate, real-time account verification and payment authorization from the check writer’s bank. The combination of real-time authorization, elimination of paper check handling, and electronic settlement, allows TouchNet customers to substantially reduce operating costs as well as the risks inherent in accepting checks. 

“We are pleased to be assisting TouchNet, a proven leader in payment services to colleges and universities, in providing Internet and retail merchants with a real-time check authorization system,” said Joel M. Barry, CEO of ECHO. “The new system establishes a secure and cost-effective alternative to other payment forms and introduces a new segment of the economy to Internet and retail shopping. We congratulate TouchNet on being both a leader and innovator in establishing new payment options for their customers.”

"We are continually looking for ways to improve payment processing for our customers," said Dan Toughey, President of TouchNet. "Schools want to process payments more efficiently. With the Visa POS Check Service, we will offer schools a payment method that is available to almost every student, and is a real-time, online, cost-effective payment option."

Beginning in January 2003, TouchNet will implement a pilot project at several colleges and universities in association with ECHO. Later in 2003, TouchNet will roll out the service to its more than 450 higher education customers. This new check service will be an integral feature in the next release of the TouchNet Commerce Management System, a suite of products that helps colleges and universities streamline campus commerce.

“We’re excited that TouchNet is our first partner serving the higher education market, and that they will introduce the POS Check Service to colleges and universities,” said Dante Terrana, Visa U.S.A. Director of Business Development for the POS Check Service. “Higher education is a highly sought after market, and TouchNet is clearly a leader in this sector. Working with ECHO, we have developed a robust, scalable check processing solution that provides a wide range of connectivity options suitable for both POS and e-commerce applications. The Visa POS Check Service allows TouchNet to increase their service level to check-accepting customers while balancing their customers’ needs to maintain secure and efficient handling of payment transactions.” 

Payment industry research shows that personal checks continue to be the most widely used form of payments. Checks are used as payment for approximately 85% of all non-cash personal spending. At the same time, merchants incur $23 billion annually in handling and fraud costs – averaging more than one dollar for every check written at the point of sale. One reason for these high costs is that a typical paper check passes through six to twelve different pairs of hands when processed in a paper-based environment. 

In February 2002, the Visa POS Check Service was made available to all Visa Member financial institutions. To date, merchants in more than 45 states have processed $46 million in transactions through the service. The Visa POS Check Service utilizes VisaNet, the world’s largest consumer payment processing system, which currently processes transactions for more than 5 million merchants and reaches 90% of the country’s demand deposit accounts. VisaNet has an established track record of nearly 100% network and system availability as well as virtually 100% reliability.

About TouchNet® Information Systems, Inc.

TouchNet develops, licenses, and supports eBusiness software solutions for electronic payments and web-based commerce. TouchNet has helped customers streamline business-essential transactions since 1989. 

Over 450 colleges, universities, and businesses use TouchNet products and services to integrate electronic payment processing into enterprise applications. TouchNet has helped these organizations save time and money, while improving customer service, by streamlining billing, payables, point of sale, and e-commerce operations.

For more information about TouchNet, please visit www.touchnet.com 

About Visa U.S.A.

Visa is the world’s leading payment brand and largest consumer payment system, enabling banks to provide their consumer and merchant customers with a wide variety of payment alternatives. Nearly 14,000 U.S. financial institutions rely on Visa’s processing system, VisaNet, to facilitate $949 billion in annual transaction volume – including about half of all Internet payments – with virtually 100% reliability. U.S. consumers carry 383 million Visa-branded smart, credit, commercial, prepaid and check cards, accepted at approximately 24 million locations worldwide. Visa’s people, partnerships, brand, payment technology and security standards are helping to create universal commerce – the ability to safely conduct transactions anytime, anywhere, anyway. For more information about Visa, please visit www.visa.com 

About Electronic Clearing House, Inc. (ECHO):

Electronic Clearing House, Inc. (www.echo-inc.com) provides a complete solution to the payment processing needs of merchants, banks and collection agencies. ECHO’s services include debit and credit card processing, check guarantee, check verification, check conversion, check re-presentment, check collection, and inventory tracking.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts re forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, such factors as fluctuations in demand for the Company’s products and services, the introduction of new products and services, the Company’s ability to maintain customer and strategic business relationships, technological advancements, impact of competitive products and services and pricing, growth in targeted markets, the adequacy of the Company’s liquidity and financial strength to support its growth, and other information detailed from time to time in the Company’s filings with the United States Securities and Exchange Commission.

Investor Contacts:

Donna Rehman, Corporate Secretary 
Electronic Clearing House, Inc.
818-706-8999, ext. 3033 
Agoura Hills, Calif. 
E-MAIL: corp@ECHO-inc.com
URL: http://www.ECHO-inc.com

Crocker Coulson, Partner
Coffin Communications Group
818-789-0100
E-MAIL: crocker.coulson@coffincg.com

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

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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