MyECheck, Inc. (fka MYEC)

[Silverblue]

Payments system company MyECheck Inc. earned $1.4 million in the first half of this year, up from $400,000 during the first half last year.

The Folsom-based company reported revenue of $1.5 million in the first half, up from revenue of just $3,025 at the same time the previous year.

MyECheck (OTC PINK: MYEC) offers customers mobile and online payments via the checking system.

During the first half of this year, the company hired and trained nine employees and three independent contractors. In July the company reported it signed a three-year lease for a 3,200-square-foot office at 2600 East Bidwell St. in Folsom.

The company was launched in El Dorado Hills in 2005 by payment system veteran Ed Starrs. Starrs is still the CEO.

MyECheck had been on a roll in 2009 when state bank regulators closed First Regional Bank of Los Angeles, which had handled most of MyECheck’s merchant business. That closure, which had nothing to do with MyECheck, set the company back for several years.

MyECheck is unlike most other electronic money transfer companies that use the credit-card payment system — or the Automated Clearing House — network that powers ATMs. Instead, MyECheck clears checking account payments electronically directly through banks or the Federal Reserve. The company’s services are built on the Check Clearing for the 21st Century Act, which was an act of Congress to digitize paper checks early in their entry into the financial system. The 2003 law requires banks to accept electronic images, as well as paper checks.

MyECheck also announced on Wednesday it will use Giact Systems of Allen, Texas, for fraud control.

Earnings, revenue rise as MyECheck ramps up business


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