ECHO Introduces CHEXpedite, an Internet-Based Check Processing Product

Business Wire, Dec 21, 1999

Business Editors

AGOURA HILLS, Calif.--(BUSINESS WIRE)--Dec. 21, 1999

Electronic Clearing House Inc. (Nasdaq:ECHO) announced the development and release of CHEXpedite, an online check processing product.

CHEXpedite was developed under an exclusive five-year processing and software development and license agreement with National Bank Drafting Systems Inc. (NBDS), a sales and marketing organization located in Fort Worth, Texas.

NBDS will promote CHEXpedite through its nationwide network of over 1,500 licensees. These licensees, in turn, will promote CHEXpedite directly to merchants and through third parties. Palo Verde Software, a developer of back-end payment systems and services for major Internet Service Providers, recently announced its intention to promote the CHEXpedite service.

CHEXpedite allows online shoppers, by selecting CHEXpedite as their online payment option, to access funds from their checking accounts to pay for Internet purchases. CHEXpedite encrypts the data using SSL encryption technology and transmits it to ECHO's secure server for processing through Magic Software Development Inc. (MAGIC), ECHO's Albuquerque, N.M.-based check processing subsidiary.

In addition to the initial presentment of checks via the ACH network, CHEXpedite processing includes automatic second presentment of items returned by the consumer's bank due to non-sufficient or uncollected funds. When a second presentment is returned, an integrated collection process is employed to verify funds at the checkwriter's bank before attempting a third and final presentment.

Throughout this process, the CHEXpedite merchant is able to track this activity and reconcile funds via a sophisticated, Internet-based online reporting system.

"CHEXpedite allows online merchants to accept and process electronic check payments directly from their Web site," stated Joel M. Barry, ECHO's CEO. "This new product continues to add value to merchants doing business with ECHO over the Internet."

Electronic Clearing House provides credit card processing, check guarantee, check verification, check conversion, inventory tracking services and various Internet services to over 19,000 retail merchants and U-Haul dealers across the nation. ECHO also designs, develops and manufactures software and point-of-sale hardware that is utilized as credit card processing terminals, automated money order dispensers, inventory tracking devices, and casino cash advance systems.

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.