MyECheck Inc. Part of Growing Trillion Dollar Check Industry
Checks Account for 55% of All Non-Cash Payments in Value, While Credit Cards Account for Only 3% and Debit Cards 1%
SACRAMENTO, CA--(Marketwire - June 3, 2008) - MyECheck Inc. (OTCBB: MYEC), a leading provider of comprehensive alternative payment solutions to credit cards for, internet, intranet, mobile commerce and brick & mortar platforms, is pleased to comment on the Federal Reserve's 2007 study of noncash payments.
The study shows that checks continue to be the leading method of payment by an enormous margin over both credit and debit cards pointing to large financial opportunities in the new check industry. According to the Federal Reserve's 2007 study of noncash payments the following was reported:
Check Payments in the United States in 2006
-- Value: $41.7 trillion
Debit Cards Payments in the United States in 2006
-- Value: $1.0 trillion
Credit Cards Payments in the United States in 2006
-- Value: $2.1 trillion
MyECheck was created to capitalize on opportunities created by the passing of "The Check Clearing for the 21st Century Act" and to satisfy the demand for an alternative payment solution to credit and debit cards for online commerce. MyECheck has developed and utilizes a proprietary method of creating and clearing Remotely Created Check ("RCC") images on behalf of its e-commerce customers, having successfully implemented its proprietary RCC service that enables companies to accept real-time check payments from consumers and businesses online or over a telephone.
Although the Automatic Clearing House system (ACH) represents a large portion of electronic payments, consider that most ACH payments started out as paper checks and were converted to ACH electronic format. MyECheck's solutions eliminate the need to convert check to ACH as they can be processed as images and will clear faster, have higher clearing rates and fewer returns. MyECheck processed payments are also not subject to NACHA regulation, rules, fees and fines, giving the company a competitive advantage.
Electronic Payments
-- Number of electronic payments: 62.7 billion
-- Value: $34.1 trillion
-- Annual growth rate of transactions from 2003 to 2006: +12.4 percent
ACH Transactions
-- Number of ACH payments: 14.6 billion
-- Value: $31.0 trillion
-- Annual growth rate of transactions from 2003 to 2006: +18.6 percent
The study also noted that the average value per check is increasing and is 14 times greater than the average credit card transaction value and 35 times greater than the average debit card transaction value, while the overall value of checks is more than 13 times greater than the total processed value credit and debit cards combined:
-- The average value of checks paid increased from $1,104 in 2003 to
$1,366 in 2006.
-- The average value of a debit card payment was only $39, the average
value of a credit card payment was $98, while the average value of a check
payment was $1,366
-- Checks accounted for 55% of all non-cash payments in value, while
credit cards were only 3% and debit cards 1%
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 approved in 1 to 3 seconds with check authorization and payment guarantee available.
Please visit www.myecheck.com for more information
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.
