SOURCE: MyECheck Inc.

June 06, 2008 16:00 ET

MyECheck Inc. Lists Its Competitive Advantages

Company Provides Alternative to Other Payment Systems That Is Faster, Cheaper and Guaranteed

SACRAMENTO, CA--(Marketwire - June 6, 2008) - MyECheck Inc. (OTCBB: MYEC), an electronic transaction processor and provider of alternative payment solutions, is pleased to announce is pleased to provide its stakeholders with a list of its competitive advantages.

MyECheck provides faster clearing and funds availability, substantially reduces charge-backs and risk and improves cash-flow; all at a much lower cost than credit or debit cards.


eChecks processed on the MyECheck system are typically accepted in 1 to 3 seconds compared to typical Automatic Clearing House system (ACH) time frames of 3 to 5 days. This greatly increases the cash float available to a merchant, and increases their working cash.

As an example, Frontier Airlines recently blamed its credit-card processor for its bankruptcy filing. Frontier said its credit-card processor demanded a sudden and unexpected jump in collateral, which meant a sharp reduction in cash flow from credit-card proceeds. This was because the item price of an airline is relatively high, and with growing credit card charge-off rates on the rise, many merchants are experiencing higher charge-backs prompting credit-card processor to increase their rolling reserve (A rolling reserve is a non-interest-bearing deposit required by credit-card processors equal to 1 or 2 times the average estimated monthly credit card sales by a merchant).

MyECheck customers enjoy no rolling-reserve and typically funds are made available within 1 business day.


With Credit Card charge-off rates and delinquency rates reaching highs not seen in years, the ecommerce industry is faced with a shrinking number of consumers able to use 'traditional' payment methods such as credit cards. MyECheck offers its services at a fraction of the cost of credit-card processors, and does not require any deposits or rolling reserves.


eChecks processed on the MyECheck system enjoy approval rates averaging over 90%, with many merchants exceeding over 95%. The Company provides a solution guaranteed by Secure Payment Systems Inc. which enables MyECheck merchants to ship the same day with confidence that they will be paid, even if their customer's check bounces. In less than one second, Secure Payment Systems authorizes checks from its database of millions of records, accessing both local and national negative files of unpaid checks, along with other proprietary verification services.

Secure Payment Systems profiles the transaction using proprietary shopping pattern algorithms and continuously updates this database with check writing histories. The database also incorporates a positive file of good check writers, so MyECheck merchants don't lose sales due to customer high check writing activity. With the guarantee service the authorized checks that bounce are reimbursed to MyECheck merchants in full within 14 days.

Alternative to credit cards

Checks continue to be the number one non-cash payment method in the US with the value of checks processed annually around one hundred trillion dollars. Up to 50% of adults either have no credit card or have no available credit on their cards, meaning that as many as 80 Million US adults have no ability to buy online at the many websites that only accept credit cards. Many online merchants are dissatisfied with credit card and ACH solutions, and many online industries such as travel and brokerage have no check solution at all.

MyECheck can debit every US checking account, even accounts that ACH cannot debit. Such accounts include accounts at many Credit Unions, S&Ls, small banks, brokerage accounts, business accounts and credit card check accounts. In fact, MyECheck provides its clients with access to more customers than any other single payment method.

Ed Starrs, CEO of MyECheck, commented, "Our solution provides merchants with a broader reach at a better rate than our competitors. Today, MyECheck is a leader in Check 21 solutions offering the most comprehensive suite of electronic check processing services in the industry. Please come by and visit us at the IRCE next week at booth 144."

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Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of mentioned products, increased levels of competition, new products and technological changes, dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in reports filed with the Securities and Exchange Commission.

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