ECHO Pilot Program Integrates Credit Card, Check Verification and Debit Card

Business Wire, August 16, 2000

Business Editors

AGOURA HILLS, Calif.--(BUSINESS WIRE)--Aug. 16, 2000

Electronic Clearing House, Inc. (NASDAQ:ECHO) announced the initiation of a pilot program that allows merchants to accept multiple forms of payment on one platform. The program, referred to as ECHOTERM 2.0, gives ECHO merchants the ability to accept credit cards, debit cards and to verify checks against National Check Information Services (NCIS), one of the top negative file databases in the nation.

"For the last few months, ECHO has been working on integrating all of the services of ECHO, RMRS, and XpressCheX, Inc. into one platform and the Verifone Tranz line of terminals is the first of several terminal types that will operate the new platform," stated Joel M. Barry, CEO. RMRS, a national check verification provider, was acquired by ECHO in January of 2000 and XpressCheX, an ACH processor who also provides verification service, was acquired by ECHO in April of 1999. Verifone Tranz terminals are the most common terminals in use in the merchant marketplace today.

The new software also offers enhanced security features to protect merchants from fraudulent credit card transactions and allows full entry of commercial card data, lowering processing costs to ECHO merchants.

In addition to making ECHOTERM 2.0 available to all new merchants, a direct marketing effort and in-house cross-selling program using ECHO's 24/7 customer support staff will be launched to encourage all existing ECHO merchants to install the new software and consider adding the new services to their credit card processing with ECHO.

The following services and enhancements make up the ECHOTERM 2.0 software:

-- XPRESSVERIFICATION(sm) -- A real time check verification

of the NCIS database.

-- Debit Cards -- Using a PIN pad attached to the merchant's

terminal, ECHO merchants have access to Interlink, Maestro, and

STAR networks for authorization of their debit card activity.

-- Address Verification Service -- Having the ability to

confirm the home address of the cardholder eliminates

unauthorized or stolen card use.

-- Security Code Verification -- By entering preprinted security

numbers on the card, the merchant gains certain chargeback

rights and minimizes fraudulent activity.

-- Commercial Card support -- By accommodating the data entry

requirements related to accepting a Commercial Card, the

merchant lowers his processing costs and satisfies his

business-based customer.

Electronic Clearing House, Inc. provides credit card processing, cash advance services, check guarantee, check verification, check conversion, inventory tracking and/or various Internet services to over 41,000 retail merchants, and U-Haul dealers across the nation. ECHO also designs, develops and integrates software and point-of-sale hardware that is utilized as credit card processing terminals, automated money order dispensers, inventory tracking devices, and 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.