SOURCE: Authorize.Net

October 16, 2007 07:00 ET

Authorize.Net Enhances eCheck.Net® Service With ARC and BOC Transaction Types

MARLBOROUGH, MA--(Marketwire - October 16, 2007) - Authorize.Net Holdings, Inc. (NASDAQ: ANET) announced today that its electronic check payment service, eCheck.Net®, now supports two additional electronic check transaction types, Accounts Receivable Conversion (ARC) and Back Office Conversion (BOC).

eCheck.Net enables Web and mail order/telephone order (MOTO) merchants to accept and process electronic check payments, which are deducted directly from their customers' bank accounts. By accepting electronic checks, merchants expand the payment options available to their customers, potentially increasing both customer loyalty and business.

The addition of ARC and BOC as supported transaction types for eCheck.Net creates additonal flexibility for merchants, particularly those who accept payments via paper check. ARC allows merchants to collect payments received in the mail or left in a drop-box, and convert them to electronic payments upon receipt, while BOC allows merchants to collect a check written and presented at the point of sale and convert it to an electronic payment during back office processing. Advantages of ARC and BOC include simplified paperwork, unified reporting and quicker receipt of transaction funds.

"Electronic check transactions are one of the fastest growing payment methods for e-commerce merchants," stated Roy Banks, Authorize.Net president. "By adding support for ARC and BOC, we are continuing to expand our eCheck.Net service to meet our merchants' evolving needs. The ability to accept and convert paper checks will simplify and expedite their check processing activities. For resellers, these new transaction types enhance the market opportunity to sell electronic check processing services to merchants. With low buy rates, volume-based pricing, and the ability to set their own sell rates, eCheck.Net remains a compelling solution for resellers."

eCheck.Net can also be combined with Authorize.Net's popular Automated Recurring Billing™ (ARB) service to create an additional option for subscription-based payments.

About Authorize.Net Holdings, Inc. (

Authorize.Net provides secure, reliable, Internet Protocol (IP) based payment gateway solutions that enable merchants to authorize, settle and manage electronic transactions anytime, anywhere, via Web sites, retail stores, mail order/telephone order (MOTO) call centers and on wireless devices. In addition to its payment solutions, Authorize.Net offers extensive value-adding products designed to help merchants manage their business, fight fraud, and improve profitability. Authorize.Net is sold through an extensive network of partners that offer its IP-based payment services to their merchant customers.

AUTHORIZE.NET and eCheck.Net are registered trademarks of Authorize.Net Holdings, Inc. or its subsidiaries. All other marks are the property of their respective owners.

Forward-looking Statements

Certain statements in this news release that are not historical facts, including, without limitation, those relating to the Company's products, services, including eCheck.Net, ARC, and BOC, the growth of electronic check transactions, the enhanced marketability of eCheck.Net and the Company's markets and growth prospects are forward-looking statements that involve risks and uncertainties. Such statements are based upon the current beliefs and expectations of the management of the company. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, (i) the Company's revenue concentration in the payment processing business, (ii) continuing rapid change in the payment processing industry and other markets in which the Company does business that may affect both the Company and its customers, (iii) the impact of competitive products, services and pricing on both the Company and its products and services, (iv) market acceptance of the company's new or enhanced products, services, technologies, including the adoption of ARC and BOC, (v) current and future economic conditions generally and particularly in the telecommunications and payment processing industry, (vi) uncertainties about the Company's ability to execute on, and about the impact on the Company's business and operations of, its objectives, plans or strategies as a result of potential technological, market or competitive factors, (vii) the impact of compensation expense, restructuring, asset impairment and other charges on the Company's business and operations, (viii) integration, employee retention, recognition of cost and other benefits and revenue synergies, and other risks associated with acquisitions, including the pending acquisition of the Company to CyberSource Corporation, (ix) the industry risks associated with Authorize.Net's business and operations including, without limitation, illegal or improper uses of Authorize.Net's payment system, unauthorized intrusions and attacks on Authorize.Net's payment system that may impair the operation of its payment systems, changes in or failures to comply with credit card association rules and governmental regulations, changes in the application of existing laws and the impact of new laws, and dependence on relationships with resellers, certain financial institutions and third party payment processors, and (x) the factors disclosed in the Company's filings with the U.S. Securities and Exchange Commission including, without limitation, its second quarter 2007 Quarterly Report on Form 10-Q, 2006 Annual Report on Form 10-K, and other public filings. The Company undertakes no obligation to update any forward-looking statements.

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