MyECheck Engages Auditors, Adds Senior Financial Management, Plans Up-Listing March 6, 2014: http://finance.yahoo.com/news/myecheck-engages-auditors-adds-senior-005000074.html (Bruce Smith, CPA, added as Vice President of Finance and Company Controller. Company Plans to become Fully Reporting with the SEC. MyECheck Engaged Independent Accountants L.L. Bradford to Conduct an Audit of the Company)
MYECHECK, INC (“MYEC”) STOCK IS A HIGH RISK INVESTMENT. MYECHECK, INC IS AN EARLY STAGE, STARTUP COMPANY AND IS HIGHLY VULNERABLE TO KNOWN AND UNFORESEEN RISKS, INCLUDING BUT NOT LIMITED TO INABILITY TO EARN REVENUE AND CONTINUE OPERATIONS. MYECHECK DOES NOT GIVE INVESTMENT ADVICE; PLEASE CONSULT A LICENSED PROFESSIONAL FINANCIAL ADVISOR BEFORE INVESTING. ONLY EXPERIENCED, QAULIFIED INVESTORS THAT CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT SHOULD CONSIDER INVESTING. MYECHECK, INC IS A LIMITED REPORTING COMPANY SUBJECT TO LOWER REQUIREMENTS OF DISCLOSURE THAN A FULLY REPORTING COMPANY. MYECHECK FINANCIAL STATEMENTS AND REPORTS ARE UN-AUDITED.
Company Information
Corporate Name: MyECheck, Inc. State of Incorporation Wyoming Main Office Address: 3941 Park Dr., Suite 20-179 El Dorado Hills, CA, 95762 Stock Exchange/Ticker OTC:Pink “MYEC” Transfer Agent: Signature Stock Transfer
FAQ
1) What is an accurate count on shares outstanding? What is the current float?
A) As of December 1, 2013, there are 3,612,470,000 shares issued and about 609,000,000 in the public float.
2) The MyECheck Founder & CEO, Ed Starrs holds 3,000,000,000 shares, about 79% of the issued and outstanding and 60% of the authorized, what are his intentions for these shares?
A) Mr. Starrs plans on holding his stock long term and has no plans to sell any stock. Mr. Starrs’ stock is “Restricted” and cannot be sold without an exemption from registration such as Rule 144. Rule 144 may permit Mr. Starrs to sell up to 1% of the issued and outstanding stock, or up to 36,124,700 shares within any three month period. If Mr. Starrs changes his plan and decides to sell stock, he would be limited to selling relatively small amounts of stock from time to time as permitted under an exemption to registration, and any such sales would be subject to disclosure through the OTC.
3) Why are there almost 5 billion shares authorized and 3.6 billion issued and outstanding, this seems like a lot of shares compared to other companies, does it pose any unique problems and is the Company considering restructuring its equity, would management retire their shares?
A) The current equity structure is the result of re-organizing the Company that enabled management to regain control of the Company and restart liquidity in the public market, and that process is still going on. The equity structure has served an important purpose for the Company and has proven to be the right structure during the past year. Currently there is no need, therefore no plan to restructure the Company equity. A reverse split at this time, for example, would cost shareholder value we believe and would give shareholders fewer shares at an inequitable value. We are however open to restructuring if and when we believe there is a viable reason to do so. It is very likely that equity restructuring will be considered in 2014. The idea that management would give away their ownership positions is unrealistic.
4) Are there any current plans to form an IR Department for MyECheck?
A) We will have internal Investor Relations when we are fully reporting on a more senior exchange, and we will likely use external Investor Relations services in the interim.
5) Is MyECheck still the fastest, safest and cheapest way to transfer money from any US bank account?
A) Yes, it’s the fastest, safest and lowest cost way to move money electronically in the United States. And, advances in banking industry infrastructure along with our own new developments will improve our capabilities and the services we provide.
6) Why do some brokers show a Chill on MyECheck’s stock, when other brokerages do not? Is there a way to get that fixed?
A) MyECheck is not currently DTC eligible and needs to have a DTCC member recommend us to become DTC eligible. When MyECheck re-domiciled from Nevada to Wyoming, a new CUSIP was issued to the Company stock and the old CUSIP was cancelled. DTCC tracks Issuers by CUSIP so they have no way of tracking MYEC, therefore cannot clear MYEC stock electronically through DTC. Some brokers can get around this manually and some can’t or won’t. We have been working with DTCC members on becoming DTC eligible in the very near future.
7) There was a PayPal Survey sent out showing MyECheck as an alternative. Do you have any knowledge of this? If so, can you comment on it?
A) We have had no contact with PayPal regarding this survey and had no role in it other than being listed as a payment services provider.
Instead of offering MyECheck branded services to PayPal users, a better application for PayPal would be to use our technology as the default bank account funding method instead of ACH, it would work with more PayPay user bank accounts, the funds would clear at least a day faster than they currently do, and it would be more secure with less failed and returned transactions therefore lower cost and much more efficient.
8) What happened to the stock issued for the debt June 15, 2015 of 400,000,000 shares?
A) The stock was issued for the conversion of convertible debt that was purchased by a third party investor. However subsequent to the issue, the investor failed to pay the debt as agreed so the stock was cancelled on the ledger of Company.
9) What were the negotiations that were made with creditors to eliminate $502,222 of debt? Was this debt cancelled because of an agreement to trade for MyECheck’s check processing services?
A) The majority of the debt eliminated was loans to the Company, the derivative liabilities created by the loans, and numerous small accounts payable bills from various service providers. The loan instruments were Convertible Notes and Debentures. We found investors to buy these notes from the note holders; the notes were converted into shares of MYEC and sold. Almost all of the stock in the public float was created this way. With the debt from the Convertible Debenture gone the derivatives liabilities are eliminated also. The smaller debt was negotiated on a case-by-case basis with each creditor with various resolutions, but none of the creditors would have brought much value as a customer. This conversion of debt into stock also restarted the market for MYEC stock.
10) Do you have an established timeframe for MyECheck’s financials to be audited? As it would create a wealth of investor confidence, both old and new investors.
A) We plan to start the process of filing audited financial reports and become fully reporting early in 2014, this will require our previous unaudited financials be audited also.
11) What is the approximate length of time for integration of a new client? (Best, worst case and factors involved)
A) It typically takes around a week or two for a nimble client to sign up and integrate from start to finish, however the technical integration part with us is quite easy and takes very little time once the documents have been read. Our services only require data that be sent to us in one of the secure specified formats, but depending on many factors such as the size of the client, their IT personnel and schedule, their website and shopping cart, applications, database, accounting system, fulfillment system and many factors beyond our control, it takes from 2 hours to several months.
12) How are fees and percentages with sub patent agreements determined? What is the range?
A) Licensing fees are determined by the forecast number of transactions and average transaction amount. Fees consist of an upfront licensing fee for a patent sub-license, an upfront fee for a software license if required, and an ongoing fee that is a percentage of transaction amount or a flat fee per transaction. This is typically quoted to the prospective licensee after we have reviewed their business and determined their processing volume – number and size of transactions. Because our fees are custom to each client, we do not publish our fees publically.
13) What are your immediate and future hiring plans and how do you expect this to affect your speed of growth?
A) We are hiring Senior Management now, they will in turn hire subordinates. It is essential for speedy growth. Our services and internal operations are fully automated and touch free so essentially require only monitoring. Our personnel growth will be in Sales & Marketing and IT and Development.
14) Considering that MyECheck is far superior to competition, what difficulties do you foresee going forward regarding widespread acceptance of your technology?
A) The biggest obstacle is the portion of the establishment banking industry that has vested interests in ACH and resists change out of fear. Once they inevitably and collectively agree to embrace fully electronic checks, the landscape will change very dramatically, very quickly, and for the better of the national payment system.
15) What is the nature of the patent licensing agreement between Ed Starrs (yourself) and MyECheck, Inc. (the company)?
A) The agreement is exclusive and royalty free for MyECheck, however Mr. Starrs has the right to re-negotiate the agreement at any point in the future although there are no plans for re-negotiation.
16) What factors make MyECheck money transfer more secure internationally? Are international payments currently available with MyECheck?
A) It’s sounds like just semantics, but MyECheck is not a Money Transfer Service, which requires special licenses and involves a high degree of risk. We do not transfer or process money at all, either domestically or internationally.
To clarify our service processes electronic check data on behalf of merchants, enabling fully electronic check payments to our merchants from US customers/payers. Money transfer services, like Western Union, are person to person long distance cash payments. One person pays cash on one end, the other person picks up cash at the other end.
Currently we do not offer international payments, and although we plan to add global payments in the future, it is currently not our focus.
17) MyECheck appears to work the same as Debit (in that it transfers money from checking accounts), but it is significantly cheaper and faster. Is the Debit card market one that you intend on pursuing? Is it possible to have a MyECheck ‘debit card’ which would then create a virtual check and be facilitated by your patented technology?
A) Debit card transactions are processed through the Visa/MC or ATM networks, with their fees, limitations and rules. MyECheck creates and processes checks just as if it was originally a paper check, but in essentially real time. This is dramatically different than debit card services. Our service provides access to every checking account in the US, not just those tied to a specific card network. The user doesn’t need a card or any hardware to pay using MyECheck, just a checking account.
We are targeting market share of the $44 Trillion check industry with a unique patented service, this industry has different customers and is a better fit for us than the $1 Trillion over saturated debit card industry.
However, a MyECheck customer or licensee hosting a virtual or mobile wallet with MyECheck as the account funding method could issue a debit card to draw or spend those funds in the wallet, but it is unlikely MyECheck will need to offer this type of payment service itself.
18) What factors affect true processing speed? Is it the same internationally? What is the longest amount of time it can take to process?
A) The primary factors that affect processing speed are user interface software/browser, network connectivity and latency. Response times are typically 1 to 3 seconds.
19) Do you anticipate uplisting in the near or long term? What obstacles do you see preventing possible uplisting?
A) We plan on moving up to more senior exchanges when we qualify, hopefully early in 2014. We don’t anticipate any specific obstacles at this stage and we are confident we can address any that may present.
20) In the past, MyECheck has a history of PRs regarding new clients and progress. What are your intentions of PR’s and updates going forward?
A) At this stage in the Company’s regrowth, the company is trying to develop long-term strong, service oriented business relationships with its clients. Previous press releases have resulted in clients being contacted multiple times by the general public to confirm the relationship, however this is inconsistent with the Company’s internal policies regarding customer service and retention, and may not be welcome by our clients. As a result, the Company has decided not to publically announce each new client. The Company will continue to make announcements regarding material events but will not identify clients by name at this stage unless requested by the client. We will likely announce clients of unusual significance, and may resume more frequent merchant announcements in the future.
21) Are the Corporate Merchant Solutions agreements still on track for implementation this year? If so, are these agreements still anticipated to bring in $250,000 per month gross revenue to MyECheck?
A) No, unfortunately Corporate Merchant Solutions is not on track for completion of implementation before the end of the year.
22) What is your strategy, near term, for signing new customers for the purpose of licensing and sub-licensing MyECheck’s patented technology? How do you see that strategy changing in the future to allow for accelerated growth? What level of growth do you foresee in the next 1, 2 & 5 years?
A) The short-term focus is on going live with a few large merchant services customers and licensees that can generate very large transaction volumes. Most of our sales leads come from resellers, and we are starting to build a sales organization to manage the resellers. We also have relationships with resellers that have yet to be engaged.
23) How do you plan to overcome obstacles, such as larger customers who are more hesitant of change, when offering MyECheck’s technology as a solution?
A) It depends on who has presented the obstacle and why, there’s potentially dozens of answers to this. One way is to point to one of their competitors or similar company that made the change, tell them why they changed and what competitive benefits they reaped. Fortunately we have processing history and some references.
24) To whom does MyECheck owe the remaining $302,000 shown as current liabilities on the balance sheet, as per the September 30, 2013 Quarterly Report?
A) It’s a combination of a Loan from 2009 (about $65k), Legal (about $110K), Accounting (about $30K), Developers (about $50k) and other professional services fees.
25) What is the exact nature of the operating expenses shown in the Quarterly Reports?
A) Development, hosting, office, transfer agent fees, and legal fee. The development money went to pay our outsourced developers, we lease hosting space for our production system at QTS Data Center in Sacramento, and we lease a small business office. The transfer agent fees and the legal fee are a necessary part of being a public company.
26) Has MyECheck Inc. hired a Director of Merchant Services? Who is Jim Gisler? (He claims to work for MyECheck Inc. on LinkedIn).
A) We do not have a Director of Merchant Services. Mr. Gisler was a former employee of MyECheck not currently employed with us since 2010, he was a great employee who left on friendly terms and we would hire him back, but we don’t need him right now.
27) MyECheck Inc. operates under the Check 21 Act in the United States. Are there similar laws in most other Countries, and could this be an issue for International expansion?
A) There are no similar laws in other countries yet, but it is likely in the future. In the meantime, the US market holds enormous potential measured in trillions of dollars. We do have an international strategy of partnering with international payments providers. We are reviewing international payments services providers for implementation in the second half of 2014. The proposed wholesale partnership would provide MyECheck as the US component of their international service, and we would add their global services to our payment platform, giving us immediate comprehensive global capabilities.
28) Does MyECheck Inc. plan on getting involved with Airlines, Online Gambling Sites, Brokerage Firms, Municipalities, and Payroll Processing Agencies?
A) Not Online Gambling until the legal climate clarifies, but all the others listed can benefit immediately from MyECheck and they are currently sales targets. We have previously successfully provided services to the State of California and other government entities, so government is a primary target for us.
29) What percentage of revenue is generated by the new IP Licensing Revenue Model? What percentage of the fees generated by licensees flow to MyECheck Inc.?
A) This is the first time revenue has been reported from licensing fees in the previous quarter, the percentages of revenue generated so far would not be a viable indicator of anything yet. We expect the majority of fees to be generated from licensing fees, ultimately. All fees generated by licensees flow to MyECheck.
30) Will MyECheck’s technology ever be used with mobile devices?
A) Yes, MyECheck technology has been used on mobile devices. As a back-end processor, our merchants have used a variety of applications and interfaces to collect the data they pass to us, including mobile apps. We expect mobile apps to be a common way merchants will use to collect payment data and/or payment authorizations from their customers. We are working on new technologies that further secure these types of transactions.
31) Why should online merchants choose to use us (MyECheck) over the competition?
A) MyECheck works with more of their customers, they get paid faster, it costs them less money, payments are more likely to be successful and less likely to be reversed, and payments can be guaranteed.
The specific comparative benefits depend on the online merchant and what competition you are referring to. Usually a business prospect is analyzed and a detailed custom proposal is prepared that highlights the specific benefits and cost savings for that unique client.
Numerous sources of information highlight the benefits of MyECheck services including the comparative analysis, the company website and company brochures, some provide detailed explanations of our Merchant Services and the competitive benefits for various applications as compared to various other payment types. However online merchants are not primary targets for us anymore because they cannot provide the transaction volume we are seeking.
32) Will any 2014 expansion projects require significant investments and/or financing?
A) No not really, we will need to upgrade all of our hardware and add a lot more but that’s relatively inexpensive and we expect to be able to pay for it from revenue. We won’t need to do anything until we have much greater revenue anyway.
33) Do you believe it wise to require new customers to pay such a high rate at such an early stage in MyECheck’s formation? Would it be more beneficial to get more customers for a lower initial integration cost and grow based off of fees, then move to a higher integration cost?
A) MyECheck is the lowest cost electronic payments services provider in the country. We have never charged anything for integration, we only charge for successful transactions. All of our customers have saved money using our service. Most have saved substantial amounts of money and resources, and have custom pricing based upon many factors unique to them; we do not publish these rates.
34) Do you have plans to take advantage of the FREE SERVICES such as Social Media (Facebook, Twitter, LinkedIn, etc…)? Social media updates would dramatically reduce shareholder inquiries.
A) Yes, likely after we get IR
35) Can you please tell us which companies, previously press released, are currently processing payments through MyECheck?
A) So far, companies that have been previously announced that are currently processing payments through MyECheck are Forever Living Products, Simplifile and Always On Vacation.
36) Have you considered Venture Capital or Grants as possible financing tools for growth?
A) At this time we are not seeking outside financing.
Question: Is it possible to take us back to the price range of 2008 with the current share structure?
Answer: Not the same, better
Question: Did MyECheck make apps for the iPhone and Android? Or is it going to be the back end processor?
Answer: both
Question: Will the recent postings here on the back end processing and apps be explained more in a official Press Release soon? Dieing to know the details and to be able to use it on my phone Will it work up here in Canada?
Answer: Yes when we officially launch them
Question: Ed Starrs great job with everything so far. Excited every morning waking up to read more about myecheck. Ed I had a question how could we surpass these short sellers at these ranges to make it to otcqx?
Answer: That situation wil improve
Question: There are many new Payment Technologies being developed. How does MyECheck plan to make itself known, and set itself a part from, all of the other options businesses and consumers will have?
Answer: None will have our capabilities, the front end stuff is generic, the backend is patented, the capabilities are exclusive to us
Question: When will the iphone app be available? Would love to be able to use myecheck on my phone.
Answer: 6 to 8 weeks hopefully
Question: Can you tell us exactly what exchange you are hoping to uplist to?
Answer: We are looking at our options, we'll likely go asap to the OTCQX, the important thing is to keep moving up as soon as we can qualify
Question: would you have to uplist to OTCQB first?
Answer: We can leapfrog if we qualify Question: Great response. Thank you. Does MyECheck have a mass marketing plan to gather awareness prior to, or immediately after, iOS and Android Apps launch?
Answer: Yes but probably not what you might expect Question: Has Corporate Merchant Solutions agreements been implemented yet?
Answer: No it hasn't / I can't really commit as to why other than they are having problems
Question: Is MyECheck involved with or considering partnering with any Canadian financial institutions or businesses ?
Answer: Yes / We are trying to partner with a Canadian payment network, nothing definitive yet
Question: Myecheck has stated in the past they werent primarily focused on international. Where does the company stand at this time with intl.pmt
Answer: We are not focussed at all on international right now, I'd love to add the capability but too much else on our plate currently, we will revisit in about 6 months
Question: Does MyECheck have a backend processing application that fits into business enterprise systems like SAP or JDEdwards?
Answer: Yes / Any payment application can integrate with the MEC check engine, we do not have any unique app for those systems, although 3rd party vendors do.
Question: Will MyECheck establish relationships with brokerages like ETrade, Schwab or Ameritrade so that clients can coordinate transfer of funds when working seamlessly between other banking institutions ?
Answer: I certainly hope so, but we are not currently working with a major brokerage Question: Did you eve rekindle those conversations with Apple!? Thanks for everything!
Answer: Working on it
Question: How can Myecheck benefit a company like ATT mobility?
Answer: MyECheck can be used for monthly billing collection, and can provide a number of mobile payment solutions. Do you have a contact I can speak with.
Question: is www.auricsystems.com/support-center/methods-payment/ a new contact as well?
Answer: It's an old contract but they are still integrated and any of their customers can use our system without additional integration with us
Question: Is it possible that you would retire more shares in the future?
Answer: It's possible, no specific plan right now Question: I have accumulated a large amount of shares over the past year and believe in the long term growth of MyEcheck. My wife would like me to take half off the table with the recent rise in pps, what would you tell her to convince her to hold until at least 2015? In your opinion what is the true valuation for myecheck as a whole and pps?
Answer: I can't give investment or valuation advise on MYEC, the value is whatever the market dictates, however my personal financial strategy is not to carry any debt
Question: Would you consider a buy out for $1 per share? Are you planning on hiring a sales team?
Answer: Are you offering me $1 a share? We have a sales team, they just aren't salaried employees, and it's small. We will grow our sales department as we move forward.
Question: Are you hiring any summer sales/lead generation interns?
Answer: Not a bad idea, check back in a couple of months
Question: How can the MYEC shareholders help you gain more clients and get the word out? We've got a pretty big street marketing team here that is willing to help. Should we be sending emails to our Stock Brokerage, our sell phone carrier, or our banks telling them we want them to use Myecheck's services? If so, who do you want us to hit? Or would you rather us not do that?
Answer: Great question, we are looking for large customers only, not banks necessarily, best thing to do if interested is direct them to the website and give them my phone number or get their contact info to me
Question: Has MyECheck implemented the new Biometrically Authorized Device Signatures feature into any current solutions? Are BADS expected to be a significant solution MyECheck offers in the future?
Answer: This technology will be instrumental, not yet released
Question: Does MyECheck now have it's own FedLine Direct?
Answer: No, we have our own ETI routing number and we have access to FedLine through bank partners Question: Bank partners? Are there bank partners besides Bank of Kentucky?
Answer: Yes
Question: What is the current relationship between MYECheck and Bank of America and how can current Bank of America customers utilize your services ?
Answer: BofA customers can contact me to sign up and start immediately
Question: Is there a plan in place to start garnering national press (cnbc, forbes, fox business, etc) with myecheck solutions?
Answer: They will be here soon
Question: Is auditing on track for EOY or should we expect Q1?
Answer: I wish I could answer that one but I can't sorry
Question: How can I set up my business with myecheck? Thanks for all the hard work!!!!
Answer: To set up direct you must be processing $100M/mo, GreenPay would be a good option when they launch on our system on about 10 weeks
Question: Will this user app allow me to say transfer money from my Bank of America account into a US Bank account?
Answer: Possibly but probably not when we first launch / This can be accomplished now with a ewallet partner Question: Will the apps be designed for payments to merchants or payments to friends & family, or both? How soon can funds clear?
Answer: The first version is a b2c, recipient must have merchant app / The system is technically capable, there's other issues to consider, a partner would be able to provide p2p right now
Question: Will the recipient of funds need the MyECheck app also to receive the payment?
Answer: There's a user app for the device and a merchant app
Question: I would love to transfer money to my brokerage account using myec
Answer: Have your broker call me
Question: I filled a survey for td ameritrade. Told them that Myecheck has the solution for them. They called back this morning.
Answer: Probably Customer Service calling you, ask them to talk to their CFO about MyECheck
Question: It seems like MyECheck is really starting to get the ball rolling. Are you to the point where companies are catching wind of your technology and reaching out to you or are you still having to educate companies by reaching out to them? Thank you for your time.
Answer: We are starting to gain traction
Question: so what is the difference between me using GreenPay and cardinal commerce to do check processing thru my website for to go orders
Answer: Our parters usually have a platform on top of ours that allow for additional or different functionality, shopping carts, stored value, and they target different markets and customers
Question: Is MYEC attending any upcoming conferences, symposiums, etc to discuss its business and exhibit to the public ?
Answer: We will be attending trade show and conferences, there are a several I want to attend
Question: Is MyECheck going to update and improve its Website ? It appears very sparse and somewhat outdated and could use a nice redesign as well as links to social media, etc ?
Answer: We want limited information so interested companies contact me for more info, but please send that comment to steve.balnford@myecheck.com
Question: Does MyECheck have a partners reward program on purchases, services, etc ?
Answer: We have looked at programs, we may have something later
Question: If I am a Huntington Bank, PNC Bank or US Bank customer... Can I sign up with you and start with MyECheck ?
Answer: If you process $100M/mo
Question: Why have you not pursued any discount brokerages ?
Answer: Yes the industry is very hot and getting ready to explode.
Question: Is Auric Systems International a new client or an existing client?
Answer: Auric a payment services provider, a payment platform for merchants, and we are integrated with them. We need to sell and sign up their merchants, their merchants are already integrated with MyECheck by being a customer of Auric so there is no technical integration required.
Question: You've stated your front end is generic and back end patented. New owner of stock in Myecheck . My only concern: Can your patent be 'tweeked' by larger company and used, or are the parameters of patent solid and ground breaking enough not to be stolen and used by others?
Answer: Thanks great question, patents can't be tweaked once granted but some can be circumvented by not infringing on any claim in the patent. My belief and that of my attorney is that you cannot create an electronic check without infringing on exclusive rights granted to me by the UD government
Question: Mr. Starrs As you can see here I was charged $83.68 for a simple paypal payment into my account which will now take another 3 or 4 days to get transferred into my business account. If MYEC were being used would I be correct in saying that it would have only cost me $5 to receive the payment and it would have been credited to my account almost immediately if not on the same day?
Answer: There is misinformation out there regarding our pricing, it depends on many factors, but it will be much more cost effective and the funds will clear the same day / It could be a lot less than $5 / We only charge merchants for successful transactions, there is no charge to the user
Answer: I think our solution is way cooler, watch the myecheck.com blog for more info
Question: When a User is at the Merchants business location, will the Merchants business auto-populate to the Users App, or will the User need to search and add each Merchant to their App?
Answer: Yes, they can scan a merchants QR code at the business location and auto-add the merchant
Question: MyECheck/Ed Starrs.... You need to improve the look and feel of your Website. To do it cheap and effectively have your PR/Media department look at SquareSpace.com. / for a few hundred dollars, they can hire some developers and make better theme for their wordpress website... btw- worpress powers >60% of the websites worldwide... Looking like a multi billion dollar company is the first step in becoming a multi million dollar company.
Answer: You are both correct, we need a much improved web site, right now we have to work with what we have but will launch a new site in the future
Question: I may have missed this post and/or PR release, but as a new investor wondering if I should buy more shares -- are you working on a thumbprint / bio-metric version as I've heard the big banks / credit card companies are now exploring? Sorry if this has already been asked and answered!
Answer: yes we are
Question: Question. In a PR the wording was that a Share buy back will be upcomming and then the retirement of one billion shares. The query... is the share buyback being conducted on the open market float?
Answer: No, the share buy back already happened, it was a private transaction not on the market, the purpose was to facilitate the retirement of 1 billion shares
Question: ed. are you using cloud technology?
Answer: We use cloud technology but our production environment is not in the cloud
Question: Ed. Have you thought about financial entities in airports? They might like your idea.
Answer: We have a demo of our traditional services and the mobile apps will be available for download soon / The demo we have is confidential for our customer presentations
Question: Was this a hardware/software capability test I am assuming?
Answer: Current thru-put capacity based upon testing real transaction data, it's also scalable when needed
March 6, 2014: “MyECheck's has America's fastest, safest and lowest cost Mobile Payment Platform, Real time payments from any bank account on iPhone and android devices.”
March 6, 2014: “So I take it the annual shareholders's meeting is in Vegas this year?”
March 8, 2014: “Any shareholder with stellar sales skills interested in a sales position with MyECheck please forward your resume to sales@myecheck.com”
March 10, 2014: “Issue with Scottrade - I do not know why they stopped filling buy orders today, but we have an attorney looking into the matter tomorrow. In fairness to them until I know more I will assume it is because we are not DTC eligible yet and it is more more difficult for them to clear stock. The recent dramatic increase in share price and volume may have also alerted their fraud control measures. I'll post more on this asap.”
March 10, 2014: “A feature of the new MyCheck mobile system is that once a user app is registered, it can instantly add any other MyECheck licensed business systemwide and be auto registered in their system. (With some exceptions) For example the MJ-Pay app will work with all MyECheck merchants and other licensee businesses that have downloaded the merchant app.”
March 10, 2014: “MyECheck Facebook page now has over 500 likes - not bad for our first week here! Thank you all!”
March 11, 2014: “MyECheck offers the mobile app payment system as a stand alone module for licensing. Licensees will get a turn-key mobile payment system with downloadable apps for Apple and Android devices and retail Point of Sale app that runs on Quickbooks.”
March 11, 2014: “Our attorney's got directly involved with DTCC today to expedite our DTC eligibility, and I expect it will be done soon. I think this will resolve many of the issues people are experiencing with their inability to buy MYEC”
March 12, 2014: “US Patent 7,389,913, granted June 24, 2008 covers a method of creating and clearing a new payment instrument called an electronic check. Electronic checks are created by entering data into a graphical user interface such as a website or mobile device, electronic checks are compliant with Check 21 ANSI X9 standards and never exist in paper form. MyECheck is the exclusive licensee of US Patent 7,389,913 with sub-licensing rights.”
March 13, 2014: “ACH takes 1 to 3 days longer on average than a MyECheck transaction, and are subject to more failed transactions and returns.”
March 13, 2014: “ACH transactions are limited to $50,000 and don't work with about half of business checking accounts. Myecheck transaction size is only limited to how much is in the account, and it works with 100% of business checking accounts.”
March 13, 2014: “ACH processes over $40,000,000,000,000 a year”
March 13, 2014: “ACH was developed in the 1970's and so was the Ford Pinto”
March 13, 2014: “Time to modernize the payment system”
March 18, 2014: “The MyECheck mobile payment system will have Person to Person payment capabilities, users will be able to transfer funds to any other app in real time. We are also adding a provision for the unbanked to be able to use the system by pre funding an account on the MyECheck system.”
March 18, 2014: “MyECheck plans to add e-wallet, stored value, credit-line, and international capabilities to the mobile payment system after initial launch.”
March 18, 2014: “The recipient of a payment on the MyECheck mobile payment system will be charged a small flat fee, otherwise there are no other fees or costs for users or businesses”
March 24, 2014: “MyECheck can enable real-time bank account transfers for any other mobile payment system as a superior alternative to ACH.”
March 24, 2014: “Fully electronic checks are better than cards or ACH for mobile payments because they are faster, more secure and less costly”
March 31, 2014: “Some comments on the financials released today. We have not booked our intellectual property on our balance sheet, our proprietary software like the check engine, and the patent license have significant value. We will determine a fair value of the assets and get them listed on the balance sheet. We couldn't just audit 2013, we first have to catch up on all past un-audited years. It can takes months for a one year audit, and we have to have audited 2010, 2011, 2012 before they can start 2013. We just hired the auditor about 3 weeks ago but I want them done asap.”
March 31, 2014: “All of us at MyECheck are very excited and positive about the state of our company and our future prospects, we are 100% committed to success.”
March 31, 2014: “MyECheck has some great partners that will help us grow, we will increase our efforts to seek out high value strategic partners and licensees”
April 4, 2014: “Another high value strategic partner: www.vxgateway.com “
April 7, 2014: “I have had quite a lot of inquiries regarding a Form 144 filing so I will address the issue. The form was filed by my broker in the event I decide to sell stock. This is due to the fact that my current employment contract has no salary right now, keeping expenses low and profit high. I have not decided to sell any stock, I have not sold any of the shares, and I do not plan to sell these shares in the near term or at the current price level. If the shares are sold there will be filings with the OTC indicating insider sales.”
April 8, 2014: “How do you like the new website? The site was programmed by a local long MYEC shareholder, thanks Ken! And Steve spent countless hours making the content line up and work with the site, I think they both did a great job!”
April 25, 2014: “Over 1,000 likes, thank you!”
April 25, 2014: “Interesting new mobile commerce data that supports some of the features we are adding to our mobile payment system:
1. On their way to the store, 70 percent of mobile shoppers map their route with a store locator. (Nielsen) Because smartphone users always have their phones with them, it's only natural that they look up a store's location before going to it — this means your first interaction with a customer might not be your salesperson or your signage, but rather your website.
2. Forty-two percent of customers buy online after going to a store because the online price is lower. (RIS/Cognizant) Gone are the days of merely competing with the shop around the corner. Today, retailers must be mindful of lower rates and prices online. You need value that outshines what a customer can find elsewhere.
3. Shoppers on mobile apps are 46 percent less likely to compare prices. (comScore) The benefit of mobile apps is that they drive loyalty: a user opens a store app and isn't as likely to leave to comparison shop on the Web. For this reason, creating a custom app for your retail store may be a savvy strategy.
4. Twenty-five million Americans per month are using coupon apps. (NPD) That's no small number — and yet another reason to consider getting an app.
5. Two out of 10 mobile shoppers make social media comments about purchases via their tablets. (Nielsen) What's more, another two out of 10 leave social media comments about purchases via their smartphones.
6. Besides the fact that 59 percent of tablet owners research purchases online, 38 percent of them then buy their items online, as compared to 24 percent of smartphone shoppers. (Nielsen) What this tells you is that more than half your customers who are tablet users are researching products on the Web — with intent to purchase. If you're not reaching out to this user base, you should be.
7. Mobile purchases will account for 15 percent of online retail sales this year. (eMarketer) Mobile shopping continues to grow, giving retailers new opportunities to market to customers.
8. Customers redeem mobile coupons 10 times more than traditional coupons. (eMarketer) Perhaps because they're easier to remember (because they're automatically in the phone), customers find mobile coupons easier to use.
9. When they don't receive customized, relevant content and offers, 54 percent of consumers are willing to end their relationship with a retailer. (CMO Council) If you want to keep your online audience's attention, you need tailored content.
10. A poorly designed mobile site will make 57 percent of consumers unwilling to recommend a company. (Mobile Marketer) If you think your website design doesn't matter, you're wrong. Your customers won't want to promote you if your site isn't attractive and user-friendly.”
May 1, 2014: “DTCC update, we are still actively pushing to get this done asap, obviously taking much longer than we originally expected. DTC requested a document that we are waiting to get back from the SEC related to our initial registration. I think we are still looking at at least another week or so.”
May 1, 2014: “MyECheck has never been in a better position than it is right now, we are very confident in our products and the demand for them, and we are reaching our goals and achieving new milestones daily. We are building the internal infrastructure of the company to facilitate and support our growth with new hires and a new facility. We have customer and licensee integrations that are being completed, bank integrations under way, we are engaged with many new prospects and we are operating profitably. I haven't been selling stock and everything at the company is very positive and progressive.”
May 12, 2014: “The Federal Reserve Bank "Fed" requested comments on changes to Reg CC, some of which involved our patented process, I read all of the comments submitted, all favored the changes with some proposed considerations. I'll post some of the related comment highlights from the key industry participants:
“ECI" = "Electronically Created Item" “
May 14, 2014: “We received the document from the SEC today that we needed for DTC, we should be DTC eligible very soon now.”
May 15, 2014: “I will be in Colorado next week helping implement mj-pay in the industry, we have some great prospects and relationships lined up and expect the roll out to be successful.”
May 20, 2014: “There is a discrepancy in the number of shares authorized for issue by MyECheck, and the number of shares that the Transfer Agent records indicate have been issued. We have used the Transfer Agent numbers which are the greater in our current report with the OTC, and have changed the 2013 annual report to reflect the Transfer Agent numbers. We are looking into the cause for the discrepancy and what, if anything, can be done to re-allign the share structure to reflect only what MyECheck has authorized for issue.”
May 29, 2014: “We received notice that our DTC application is being approved and that we will have the effective date in a couple of days. We will issue a PR announcing DTC eligibility as soon as we have the effective date.”
May 29, 2014: “We are looking for a volunteer focus group of app testers for the Android version of mj-pay. This will be a four day live money test immediately prior to uploading to Google for approval for download through the app store. Testers must be able to manually load the app onto an Android device, you can open an account and use the system for purchases and transfers. We are creating a sign up process for testers and will post that here tomorrow. The focus group will begin June 15, the Android mj-pay app will be uploaded to Google June 19 and should be available for general public download around July 1. The iOS system will follow the same process about 4 weeks later.”
May 30, 2014: “MJ-Pay App Focus Group Test:
Volunteer testers please email steve.blandford@myecheck.com, state focus group test and your phone name brand and model, and we will respond to your email with a package prior to the test beginning on June 15. We are looking for anyone who can manually install the app onto their device and will load money onto the system from their checking account and spend or transfer money. You can be located anywhere but need a US checking account for this test. We will have some businesses in Colorado part of the test also.”
The above listed postings are some of many postings by MyECheck (Ed Starrs) on the companies official Facebook page. There are many more that contain great information.https://www.facebook.com/myecheckinc
The Federal Reserve System’s New Payment Instrument, The Electronic Check March 9, 2014
On February 4, 2014, the Board of Governors of the Federal Reserve System took the final step before creating a new law that will define a new payment official instrument called the “electronic check”. Here’s what they intend to do, and some excerpts from my patent below.
Federal Reserve Proposed New Rule, February 4, 2014 The Federal Reserve Board proposes to include two new defined terms, ‘‘electronic check’’ and ‘‘electronic returned check,’’ in Regulation CC, and would define ‘‘electronic check’’ and ‘‘electronic returned check’’ as (1) an electronic image of a check, or returned check, or electronic information related to a check, or returned check, that a bank sends to a receiving bank pursuant to an agreement with the receiving bank, and (2) that conforms with ANS X9.100–187, unless the Board determines that a different standard applies or the parties otherwise agree.
“Electronically-created items are electronic images that resemble images of the fronts and backs of paper checks but that were created electronically and not from, for example, scanning a paper check in order to create the electronic image. Electronically-created items are also sometimes referred to as ‘‘electronic payment orders’’ or ‘‘EPOs.’’ For example, a corporate customer sending payments might, rather than printing and mailing a paper check, electronically create an image that looks exactly like an image of the corporate customer’s paper checks, and email the image to the payee. Alternatively, a consumer might use a smart-phone application through which the consumer is able to fill in the payee and amount, and provide a signature, on the phone’s screen. The application then electronically sends the image to the payee.”
“Four commenters, including the group letter and one Reserve Bank commenter, stated that items created by a paying bank’s customer are a potentially useful payment innovation.”
In general, in one aspect, this specification describes a computer-implemented method for processing an online payment for an item. The method includes receiving information from a user corresponding to the online payment for the item. The information from the user is received through a graphical user interface, and includes an authorization to pay for the item using an electronic check. The method further includes creating an electronic image of an authorized demand draft based on the authorization received from the user. The electronic image of the authorized demand draft is created directly from the information provided by the user through the graphical user interface.
Particular implementations can include one or more of the following features. Creating an electronic image of an authorized demand draft can include creating an electronic image of an authorized demand draft that is compliant with the Check Clearing for the 21st Century Act (Check 21). The electronic image of the authorized demand draft can be unsigned by the user. The method can further include transmitting the electronic image of the authorized demand draft to a financial institution, and receiving funds from the financial institution based on the electronic image of the authorized demand draft to provide payment for the item. Creating an electronic image of an authorized demand draft, transmitting the electronic image of the authorized demand draft to a financial institution, and receiving funds from the financial institution based on the electronic image of the authorized demand draft can be performed substantially in real-time. The method can further include performing one or more real-time verifications on the user prior to creating the electronic image of the authorized demand draft.
A check processing system for processing an online payment from a user, the online payment being for an item that is purchasable through a website of a merchant.
Particular implementations can include one or more of the following features. The item can comprise one of a physical product, a service, digital media, or digital content. The financial institution can be one of a bank, savings and loan (S&L), credit union, or Federal Reserve. Implementations may provide one or more of the following advantages. In one implementation, a fully integrated online check processing system is provided that functions much like credit card authorization and settlement, but is much more universally available to consumers or other users.
Implementations of the present invention relates generally to data processing, and more particularly to methods and apparatus for processing a bank instrument. Various modifications to implementations and the generic principles and features described herein will be readily apparent to those skilled in the art. Thus, the present invention is not intended to be limited to the implementations shown but is to be accorded the widest scope consistent with the principles and features described herein.
www.google.com/patents/us7389913
The Patent is referenced in 14 follow-on patents by IBM, AT&T, Google, Moneygram, Telesign, and others
MyECheck’s strong competitive advantage as an electronic payment platform is its exclusive ability to enable transfers from any checking account. And the transactions are faster, safer and lower cost than ACH and card transactions. The benefits are substantial making the MyECheck platform clearly superior in many ways for mobile payments.
MyECheck provides three types of mobile payment solutions for different applications:
1) As a backend or wholesale processor to Mobile Payment Service Providers (MPSP)s. These include payment processors, e-wallets, stored value, and large merchant proprietary payment systems. The MPSP integrates with MyECheck in the traditional manner.
2) As a MPSP with a comprehensive solution for POS purchases on mobile devices.
3) As a licensor of customized mobile payment solutions. MyECheck will be launching new products in the coming weeks and months including an end-to-end turn-key mobile payments solution that any business can easily implement remotely. The retail Point Of Sale system will include user apps for Apple and Android devices, and a download merchant POS app that runs on Quickbooks accounting software.
There are two mobile payment systems, one has higher security and has been developed for regulated industries. The other has been developed for retail sales, however the set-up and process flow is almost identical.
The Merchant only requires an internet connected computer with Quickbooks and a bank account, the User only requires an internet connected mobile device or tablet and a checking account.
The process flow for remote registration apps the regulated industries system:
Merchant downloads, installs and registers MyECheck Merchant App User downloads and installs MyECheck User App User selects Merchant in User App Merchant Menu User enters Registration Data and submits to Merchant App Merchant App validates Bank Data and Pre-Approves/Declines User Account User presents ID at Merchant Location, Merchant compares to Registration Data Merchant App displays QR code to User App containing User Account Token At POS Merchant App displays QR code to User App containing Invoice User App displays Transaction Detail and prompts authorization User authorizes payment by sending Token to Merchant App Merchant App verifies User Bank Account and Approves/Declines Transaction Merchant App sends receipt to User App MyECheck backs up transaction data at an independent data warehouse.
With this uniquely broad range of capabilities, MyECheck can serve almost any customer in any market either directly or through one of MyECheck’s licensees or MPSP partners. This model also enables growth through leveraging partners’ existing customer base and sales and marketing resources.
More on the Agreements with GreenPay LLC March 1, 2014
This week MyECheck announced that it has sold a software and patent license to GreenPay LLC, developer of mobile payments apps specifically for the legal marijuana industry.
Does this mean MyECheck will soon be in the marijuana business? Not really, it means that a third party company (GreenPay) will be given their own customized version of MyECheck software to run on their servers. They will provide their services to select businesses engaged in legal commerce. MyECheck can track their transactions and we will debit their account daily (using our system) for our licensing transaction fees.
What are the two biggest industry problems that MyECheck can solve?
1) It’s an all cash business which brings greater security risks, it’s more susceptible to robbery, money laundering and tax evasion. Government authorities cannot easily access transaction data for oversight and cannot ensure safe and legal commerce. And the cash literally reeks of pot so much it’s difficult to re-use.
2) FinCEN, the federal government’s financial crimes cops, have stated that banks may accept legal marijuana businesses but also laid down expectations that are impossible for banks to comply with in a cash business. The banks have no way of knowing if cash being deposited by a marijuana business was obtained legally or not, therefore they are at risk of federal prosecution if they accept cash and it was obtained illegally.
How does the MJ-Pay solution solve the problems, how does it work? Our solution can solve many of their immediate problems by removing paper and creating an electronic transaction, here’s one way how (no confidential details):
- MJ-Pay merchant app creates a QR code containing transaction data at the business POS checkout and displays QR code to user
- MJ-Pay user app provides for QR code capture on mobile devices, transaction data is collected in the QR code and displayed to the user who then authorizes payment.
- Transaction data is then passed securely to the GreenPay Licensed MEC Check Engine for processing. How does MyECheck's Platform and MJ-Pay Solve Problems in states like Colorado?
- MyECheck transactions are fully digital, no paper or cash, and a massive amount of associated data can be attached to each transaction file that fully describes all aspects of the transaction. This data provides all the user data along with a variety of optional real time ID certifications and account verifications.
- Users can be limited, restricted, blocked from paying based upon regulatory and business rules such as age, location, criminal record, spending limits, etc.
- Transaction data can be auto exported for auto reporting to bank and regulators daily
We would like to partner with local banks on this project, but it is not required to provide services.
We believe our solution will satisfy the federal guidelines, provide the banks with the oversight and control they need, and help the businesses be more efficient and safer.
Merchants are at a disadvantage in most e-commerce transactions due to deficiencies in payment systems June 20, 2012
In order for electronic commerce to reach its full potential, the payment systems must be efficient, cost effective, fast, universally accessible and fair. Most current widely used payment systems fail to adequately meet the current and future e-commerce industry requirements in these areas. Improvements need to be made to existing systems, and new systems incorporating technological advances in any of these areas should be readily embraced by the electronic payments industry.
Most electronic payment systems do little, if anything to protect an online merchant from fraud. Although there are a myriad of fraud prevention tools available to merchants, and fraud rates have been reduced in recent years as a result, the merchant ultimately incurs a loss in the case of online transaction fraud, which is still a prevailing issue.
The problem is the card associations and NACHA regulations make it too easy for a consumer to reverse a payment, even after they have received the products or services they paid for. Charge-backs with credit cards and payment reversals with ACH e-checks enable consumers to easily get their money back from a merchant in the case of fraud when someone else has used their payment instructions without authorization, this is good. However it is just as easy for a consumer to get their money back from a merchant even if they haven’t been a victim of ID fraud, or if they simply do not recognize the charge on their bank statement and this is obviously not good. A quick phone call to their bank or card issuer and they can get their authorized and legitimate payment reversed.
I call this type of fraud “Illegitimate Charge-backs”, and it is a huge problem for e-commerce, costing an estimated $1 Billion to online merchants annually. There certainly needs to be adequate effective fraud protections in the payment systems for consumers; however current payment systems go too far with consumer protection, while failing to adequately address the ease with which merchants are defrauded.
This has created an electronic marketplace that unfairly favors one side to a transaction, and enables more fraud to be perpetrated against merchants. More fraud translates into additional costs and reduced efficiencies.
Card associations and NACHA should do away with charge-backs as we know them today, and provide a means for consumers to get their money back only when they have been defrauded. They should model their policies on the checking system. In the check system, a consumer must sign, under a felony penalty of perjury, and get notarized a fraud claim affidavit before they can get their money back. With checks, unauthorized return rates are around 15% of credit card charge-back and ACH unauthorized return rates proving checks are more secure, cost effective and efficient than other payment methods.
Electronic checks have the most potential to meet current and future needs of the electronic payments industry. With the advent of MyECheck, a payment system now exists that is more efficient, very low cost especially when compared to card processing rates and charges, clears payments faster, is more universally available to consumers and businesses and provides a more fair and equitable e-commerce transaction platform.
http://www.forbes.com/profile/edward-starrs/ Quote: ________________________________________ Edward Starrs Mr. Starrs has more than 20 years experience as an international business executive with management experience in multiple industries. He has been an officer and director of MyECheck since its formation in 2004. Previously, Mr. Starrs was President of Starnet Systems International, Inc., a wholly owned subsidiary of a public company that was processing more than $2 billion annually in Internet transactions. Mr. Starrs owned and operated several successful companies including, ERS Marketing, Inc., where he produced over $20 million in contracts for his clients, and Bay Distributing, Inc. a major distributor of over 800 product categories to Fortune 500 accounts. From January, 2002 through October, 2004, Mr. Starrs was President of Digency, Inc., an online payment processing company engaged in credit card and eCheck transaction processing for Internet Merchants. Starrs has also held senior management positions with Fortune 100 companies including McCaw Communications, Inc. (AT&T), and AMF, Inc., the world's largest sporting goods conglomerate. Effective May 21, 2010, the Board of Directors of the Company has appointed Edward R Starrs, the Company's Chief Executive Officer, as acting Chief Financial Officer until a suitable permanent replacement can be seated. ________________________________________
http://ih.advfn.com/p.php?pid=nmona&article=57303115 Quote: ________________________________________ MyECheck Announces New IP Licensing Revenue Model EL DORADO HILLS, Calif., April 24, 2013 /PRNewswire/ -- MyECheck, Inc. (OTC PK: MYEC), a provider of transaction data processing services, announced today that it will license its proprietary system to other operators for a share of their transaction revenue on the system. MyECheck is the sole licensee of US Patent No. 7,389,913. "Method and apparatus for online check processing", and has patent sub-licensing rights that it now intends to exploit. Additionally, MyECheck has developed and operates the worlds first and most robust electronic check engine, replications of which are now being licensed to other companies. Ed Starrs, CEO of MyECheck commented, "Our new licensing model will enable far greater and faster uptake of the technology controlled by MyECheck, and add new large revenue streams. In addition to our processing revenue, we will have licensing revenue that will exceed our processing revenue in a relatively short period of time." The MyECheck service provides the most viable alternative payment option at substantially lower rates than card processing fees. MyECheck works with every US checking account, even accounts that Automated Clearing House (ACH) e-check solutions cannot debit, enabling payments from a larger customer base, and providing faster clearing of payments with less risk. ________________________________________
http://ih.advfn.com/p.php?pid=nmona&article=57266321 Quote: ________________________________________ MyECheck Announces Services Agreements with Karmen Consultants Group EL DORADO HILLS, Calif., April 22, 2013 /PRNewswire/ -- MyECheck, Inc. (OTCPink: MYEC), a provider of transaction data processing services, announced an agreement with Karmen Consultants Group, a leading provider of Corporate Payroll Processing and Tax and Bill Payment Solutions. MyECheck will provide back-end check data processing services that will substantially enhance Karmen's Payment Processing and Payroll Card Platforms including enabling more users and faster clearing of funds. Karmen Consultants Group, a Florida Corporation was established in 1984 as a financial consulting, and tax adviser to small and medium size companies. KCG has since grown to become a major provider of financial services. It has established entities in the areas of payroll processing, bill payment solutions, tax preparation and IRS representation, and marketing. The agreement is expected to generate approximately $500,000 in annual revenue for MyECheck. The MyECheck service provides the most viable alternative payment option at substantially lower rates than card processing fees. MyECheck works with every US checking account, even accounts that Automated Clearing House (ACH) e-check solutions cannot debit, enabling payments from a larger customer base, and providing faster clearing of payments with less risk. ________________________________________
http://ih.advfn.com/p.php?pid=nmona&article=57187483 Quote: ________________________________________ MyECheck Signs Multi-Million Dollar Agreements with Corporate Merchant Solutions EL DORADO HILLS, Calif., April 16, 2013 /PRNewswire/ -- MyECheck, Inc. (OTC Pink: MYEC), a provider of electronic check payment services announces it has signed multiple agreements with Corporate Merchant Solutions, Inc. (CMS), a leading processor of electronic transactions for major corporations. MyECheck will deliver to CMS an electronic check gateway enabled with MyECheck processing services. Through this gateway, CMS customers will also have access to the MyECheck electronic check platform. John Gerena, President of CMS stated, "We need MyECheck's technology to provide our corporate customer base with the most efficient and cost effective method of clearing large transactions quickly. MyECheck will play an integral role in the growth of our business." The CMS Electronic Check Gateway, provided by MyECheck, expects to be operational before the end of this year and will enable corporations and businesses to easily begin accepting real time electronic check payments with little or no integration requirements. This will result in a minimum of $250,000 per month in gross revenue to the company. The MyECheck service provides the most viable alternative payment option at substantially lower rates than card processing fees. MyECheck works with every US checking account, even accounts Automated Clearing House (ACH) e-check solutions cannot debit. This service enables payments from a larger customer base and provides faster clearing of payments with less risk. ________________________________________
http://ih.advfn.com/p.php?pid=nmona&article=57013123 Quote: ________________________________________ MyECheck Signs Check Processing Agreement with Bank of Kentucky EL DORADO HILLS, Calif., April 3, 2013 /PRNewswire/ -- MyECheck, Inc. (OTC Pink: MYEC), a leading provider of electronic check payment services today announced a signed agreement with the Bank of Kentucky. This agreement enables merchants to open accounts with the bank and use MyECheck to deposit electronic checks directly into those accounts. MyECheck is now capable of providing its services to merchants wishing to accept real-time electronic payments from any US checking account. MyECheck also announced it has completed integration and testing with the Bank of Kentucky, and is now accepting new merchant applications. Ed Starrs, CEO of MyECheck commented, "We are very pleased to be in a position to provide our services and look forward to aggressively growing the company now that the appropriate banking relationship is in place." The MyECheck service provides the most viable alternative payment option at substantially lower rates than card processing fees. MyECheck works with every US checking account, even accounts Automated Clearing House (ACH) e-check solutions cannot debit. This service enables payments from a larger customer base and provides faster clearing of payments with less risk. ________________________________________
https://simplifile.com/eRecording/pdfs/090630_MyEcheck.pdf Quote: ________________________________________ SIMPLIFILE TO ACCEPT CHECK PAYMENTS FOR E-RECORDING SERVICES THROUGH THE MYECHECK PAYMENT SYSTEM PROVO, UTAH – June 30, 2009 – Simplifile, the leading provider of electronic recording services, today announced that it has signed an agreement with MyECheck, Inc. (OTCBB: MYEC), the leading provider of online check image services. The agreement will facilitate the integration of the MyECheck Remotely Created Check solution into the Simplifile e-recording service which will allow Simplifile customers to make payments for recording and submission fees using an online check imaging process.
It is anticipated that the integration between Simplifile and MyECheck will be completed by late summer 2009. Once complete, Simplifile customers will have the option to make recording and submission fee payments with virtually any checking account in the United State—including all business accounts.
“We are excited to work with MyECheck and their industry leading online check imaging services,” said Paul Clifford, President of Simplifile. “We believe that the addition of MyECheck’s patented technology not only will allow us to electronically originate secure check transactions and transfer funds but will give our customers the ability to utilize finance accounts not previously available for payments.” ________________________________________
http://www.cardinalcommerce.com/solutions/my_echeck.htm Quote: ________________________________________ Why Enable MyECheck through Cardinal Centinel? Our patented merchant payment platform, Cardinal Centinel, provides a fast, easy and simple integration of MyECheck. Cardinal Centinel is certified to the industry’s most trusted gateway providers, processors and acquiring banks.
By leveraging the Centinel platform, merchants can enable MyECheck with minimal time and effort, also providing access to a variety of other payment brands. CardinalCommerce also provides 24x7 integration support and customer service ________________________________________
http://www.drapescurtainsnmore.com/faq Quote: ________________________________________ Is it safe to use my credit card for online purchases? Yes, it's extremely safe. At Drapes Curtains N More, we provide a secured checkout with Secure Socket Layering (SSL up to 256 bits) for processing your payments online. Add items to your cart and click Secure Checkout to make your payment using a Visa, MasterCard, Discover or American Express. Due to popular demand, you can also use this method to pay using your PayPal account or your Google Checkout account. You can also use your regular checking account through MyeCheck or Layaway your products using eLayaway. Payments will be billed as "OCG LLC" - our parent company name. ________________________________________
http://www.outdoordrapes.com/faq Quote: ________________________________________ You can also use your regular checking account through MyeCheck or Layaway your custom outdoor drapes using eLayaway. Payments will be billed as "OCG LLC" - our parent company name. ________________________________________
MyECheck offered as payment option at bottom of screen.
http://www.hankparker3d.com/faq Quote: ________________________________________ You can also use your regular checking account through MyeCheck or layaway your order using eLayaway. Payments will be billed as "OCG LLC" - our parent company name. ________________________________________
https://www.cainfotechindia.com/ecommerce/portfolio-type/multi-store/ Quote: ________________________________________ Payment Methods Supported (types of payment) • Credit Cards: Accept Credit Cards in Real Time: Cards can be processed & verified in real-time, or you can delay processing until a later time • Check By Mail • e-Checks (Authorize.net and Itransact gateways) • MyECheck (added in ML v7.0.2.5) ________________________________________
http://www.couponsrightaway.com/faq Quote: ________________________________________ Is it safe to use my credit card for online purchases? Yes, it's extremely safe. At How To Video Your Golf Swing, we provide a secured checkout with Secure Socket Layering (SSL up to 256 bits) for processing your payments online. Add items to your cart and click Secure Checkout to make your payment using a Visa, MasterCard, Discover or American Express. Due to popular demand, you can also use this method to pay using your PayPal account or your Google Checkout account. You can also use your regular checking account through MyeCheck or layaway your order using eLayaway. Payments will be billed as "OCG LLC" - our parent company name. ________________________________________
http://www.shuttersupplysource.com/faq Quote: ________________________________________ You can also use your regular checking account through MyeCheck or layaway your order using eLayaway. Payments will be billed as "OCG LLC" - our parent company name. ________________________________________
http://fgdfunding.com/?lg=en&pg=about Quote: ________________________________________ eCommerce Platform developed the industry's solution for merchants, carts, gateways, acquiring banks, processors and issuing banks, to make it easy to make a payment authentication initiatives (Checked by Visa and MasterCard SecureCode), to obtain the benefits of consumer authentication, reducing the fees, guaranteed payments and ultimately reduce fraud. At the same time, our platform supports all the latest alternative payment brands, such as Bill Me Later, PayPal, Google Checkout, MyECheck, NetCash, Western Union, MoneyGram and Green Dot MoneyPak. ________________________________________
http://www.web2market.com/Cardinal-Commerce-L4C39.aspx Quote: ________________________________________ Cardinal Commerce Centinel Endless Opportunities in eCommerce. One integration, Multiple Brands. Learn why businesses such as Continental, Crutchfield, Skymall, New Egg and others choose CardinalCommerce for authentication and alternative payments. Get all of the payment brands your Customers want with the only all-in-one payment platform. Whether NYCE SafeDebit, MyECheck, Bill Me Later, or all of them, are on the horizon, Cardinal Centinel® has the payment brands you want today, with the new brands and updates you’ll want tomorrow. Wondering which payment brands are best for your business? Contact us. ________________________________________
MyECheck shown on payment banner at bottom of screen
http://planbpay.org/Alternative Quote: ________________________________________ We can offer an ideal payment mix to our Merchant Clients. Currently we can help our merchants with the following payment methods: • MyECheck ________________________________________
http://www.merchante-solutions.com/company/news_052808.html Quote: ________________________________________ About CardinalCommerce CardinalCommerce Corporation is a leading provider of payment brands for banks, merchants, processors, and financial service providers. CardinalCommerce enables Verified by Visa, MasterCard SecureCode, PayPal, Bill Me Later, Google Checkout, eLayaway, eBillme, Green Dot MoneyPak, Ukash, MyECheck, Western Union, NACHA Secure Vault Payments, and Ebates. ________________________________________
http://www.redworldwide.com/partners/commercial-partners/cardinal-commerce Quote: ________________________________________ CardinalCommerce Corporation is the global leader in enabling authenticated payments, secure transactions and alternative payment brands for both eCommerce and mobile commerce. The Cardinal Centinel® software platform enables payment brands, such as Verified by Visa, MasterCard® SecureCode™, Amazon Payments™, Bill2Phone™, Bill Me Later®, ClickandBuy®, Cred-Ex®, Ebates™, eBillme™, eLayaway™, Google™ Checkout, Green Dot® MoneyPak®, Mazooma™, Moneybookers, MyECheck, NACHA® Secure Vault Payments (SVP), NYCE® SafeDebit™, OneTouch Online Purchasing™, Paymate, PayPal™, paysafecard, RevolutionCard™, Rialto Pay?, SafetyPay™, TeleCheck®, and Ukash™ , to a network of thousands of merchants and merchant service providers. ________________________________________
http://developer.sprint.com/dynamicContent/sprint-mobile-wallet/overview/3 Quote: ________________________________________ About Cardinal: CardinalCommerce Corporation is the global leader in enabling authenticated payments, secure transactions and alternative payment brands for both eCommerce and mobile commerce. Cardinal Centinel® enables payment brands such as Verified by Visa, MasterCard® SecureCode®, PayPal™, eBillme™, Bill Me Later®, Google™ Checkout, MyECheck, NACHA® Secure Vault Payments (SVP), Ukash™, eLayaway™, Ebates™, Amazon Payments™, RevolutionCard™, and more to a network of over 50,000 merchants and merchant service providers. ________________________________________
http://www.litle.com/news-events/press-release/litle-co-and-cardinalcommerce-join-forces Quote: ________________________________________ CardinalCommerce Corporation is the global leader in enabling authenticated payments, secure transactions and alternative payment brands for both eCommerce and mobile commerce. Cardinal Centinel® enables payment brands such as Verified by Visa, MasterCard® SecureCode®, PayPal™, eBillme™, Bill Me Later®, Google™Checkout, Amazon Payments™, RevolutionCard™, MyECheck ________________________________________
http://www.web2market.com/Cardinal-Commerce-L4C39.aspx Quote: ________________________________________ Cardinal Commerce Centinel Endless Opportunities in eCommerce. One integration, Multiple Brands. Learn why businesses such as Continental, Crutchfield, Skymall, New Egg and others choose CardinalCommerce for authentication and alternative payments. Get all of the payment brands your Customers want with the only all-in-one payment platform. Whether NYCE SafeDebit, MyECheck, Bill Me Later, or all of them, are on the horizon, Cardinal Centinel® has the payment brands you want today, with the new brands and updates you’ll want tomorrow. ________________________________________
http://www.greensheet.com/company_profiles.php?flag=display_profile&id=424 Quote: ________________________________________ Easy integration According to Sherwin, CardinalCommerce works with almost every significant alternative payment acceptance product on the market. Its total of more than 30 partners spans eight countries and includes alternative methods of payment for both Internet and mobile commerce. The options include PayPal, Verified by Visa, MasterCard SecureCode, Google Checkout, Ukash, Secure Vault Payments, Bill Me Later, MyECheck, ________________________________________
I might have found a direct connection to Zipmark as well (:
http://www.solutionsallianceltd.com/?lg=en&pg=about eCommerce Platform developed the industry's solution for merchants, carts, gateways, acquiring banks, processors and issuing banks, to make it easy to make a payment authentication initiatives (Checked by Visa and MasterCard SecureCode), to obtain the benefits of consumer authentication, reducing the fees, guaranteed payments and ultimately reduce fraud. At the same time, our platform supports all the latest alternative payment brands, such as Bill Me Later, PayPal, Google Checkout, MyECheck, NetCash, Western Union, MoneyGram and Green Dot MoneyPak.
Here are the specific patent claims that can be traced back to Ed's blog and Fed article.
Stats Jun 24, 2008 ISSUED DATE Apr 28, 2006 FILING DATE 11/413,673 SERIAL NO: In Force
First Claim 1. A computer-implemented method for processing an online payment from a user, the online payment being for an item that is purchasable through a website of a merchant, the method comprising:receiving information from the user corresponding to the online payment for the item, the information from the user being received through a graphical user interface associated with the website of the merchant, the information from the user including a name of the user, bank data associated with the user, and an authorization to pay for the item using an electronic check;creating an electronic image of an authorized demand draft based on the authorization received from the user, the electronic image of the authorized demand draft being created directly from the information provided by the user through the graphical user interface associated with the website of the merchant, the electronic image of the authorized demand draft including the name of the user, the bank data associated with the user;transmitting the electronic image of the authorized demand draft to a financial institution corresponding to the bank data associated with the user; andreceiving funds from the financial institution based on the electronic image of the authorized demand draft to provide payment for the items,wherein creating an electronic image of an authorized demand draft, transmitting the electronic image of the authorized demand draft to the financial institution, and receiving funds from the financial institution based on the electronic image of the authorized demand draft are rerformed in substantially real-time. 2. The method of claim 1, wherein creating an electronic image of an authorized demand draft includes creating an electronic image of an authorized demand draft that is compliant with the Check Clearing for the 21st Century Act (Check 21). 3. The method of claim 2, wherein the electronic image of the authorized demand draft is unsigned by the user. 4. The method of claim 2, wherein creating an electronic image of an authorized demand draft comprises creating an electronic (X9.37) image file. 5. The method of claim 1, further comprising performing one or more real-time verifications on the user prior to creating the electronic image of the authorized demand draft. 6. The method of claim 5, wherein performing one or more real-time verifications on the user comprises generating a blended risk score on the user, the blended risk score corresponding to a degree of risk associated with successfully performing an online payment transaction with the user, the blended risk score being a composite of a plurality of individual risk scores. 7. The method of claim 6, wherein each of the plurality of individual risk scores are weighted by a pre-determined factor. 8. The method of claim 1, wherein: the item comprises one of a physical product, a service, digital media, or digital content; and the financial institution is one of a bank, savings and loan (S&L), credit union, or Federal Reserve. 9. The method of claim 1, wherein the processing is completed without printing a paper check. 10. A computer-implemented method for processing an online payment for an item, the method comprising: receiving information from a user corresponding to the online payment for the item, the information from the user being received through a graphical user interface, the information from the user including an authorization to pay for the item using an electronic check; creating an electronic image of an authorized demand draft based on the authorization received from the user, the electronic image of the authorized demand draft being created directly from the information provided by the user through the graphical user interfaces, wherein the electronic image of the authorized demand draft allows a financial institution to transmit funds in substantially real-time, upon receipt of the electronic image of the authorized demand draft. 11. The method of claim 10, wherein creating an electronic image of an authorized demand draft includes creating an electronic image of an authorized demand draft that is compliant with the Check Clearing for the 21st Century Act (Check 21). 12. The method of claim 11, wherein the electronic image of the authorized demand draft is unsigned by the user. 13. The method of claim 11, further comprising: transmitting the electronic image of the authorized demand draft to a financial institution; and receiving funds from the financial institution based on the electronic image of the authorized demand draft to provide payment for the item. 14. The method of claim 11, wherein creating an electronic image of an authorized demand draft comprises creating an electronic (X9.37) image file. 15. The method of claim 10, further comprising performing one or more real-time verifications on the user prior to creating the electronic image of the authorized demand draft. 16. The method of claim 15, wherein performing one or more real-time verifications on the user comprises generating a blended risk score on the user, the blended risk score corresponding to a degree of risk associated with successfully performing an online payment transaction with the user, the blended risk score being a composite of a plurality of individual risk scores. 17. The method of claim 10, wherein the information from the user is received through a graphical user interface associated with a website of a merchant through which the item is purchasable. 18. The method of claim 10, wherein the processing is completed without printing a paper check. 19. A check processing system for processing an online payment from a user, the online payment being for an item that is purchasable through a website of a merchant, the system comprising: a first engine to receive information from the user corresponding to the online payment for the item, the information from the user being received through a graphical user interface associated with the website of the merchant, the information from the user including a name of the user, bank data associated with the user, and an authorization to pay for the item using an electronic check; a second engine to create an electronic image of an authorized demand draft based on the authorization received from the user, the electronic image of the authorized demand draft being created directly from the information provided by the user through the graphical user interface associated with the website of the merchant, the electronic image of the authorized demand draft including the name of the user, the bank data associated with the user; a third engine to transmit the electronic image of the authorized demand draft to a financial institution corresponding to the bank data associated with the user; and a fourth engine to receive funds from the financial institution based on the electronic image of the authorized demand draft to provide payment for the item, wherein the fourth engine is operable to receive the funds from the financial institution in substantially real-time relative to when the electronic image of the authorized demand draft is created and transmitted to the financial institution. 20. The system of claim 19, wherein the electronic image of the authorized demand draft is compliant with the Check Clearing for the 21st Century Act (Check 21). 21. The system of claim 20, wherein the electronic image of the authorized demand draft is unsigned by the user. 22. The system of claim 20, wherein the electronic image of an authorized demand. 23. The system of claim 19, wherein one or more of the first engine, the second engine, the third engine, and the fourth engine are components of a single engine. 24. The system of claim 19, further comprising a fifth engine operable to perform one or more real-time verifications on the user prior to the second engine creating the electronic image of the authorized demand draft. 25. The system of claim 24, wherein the fifth engine operable to perform one or more real-time verifications including generating a blended risk score on the user, the blended risk score corresponding to a degree of risk associated with performing an online payment transaction with the user, the blended risk score being a composite of a plurality of individual risk scores. 26. The system of claim 25, wherein each of the plurality of individual risk scores are weighted by a pre-determined factor. 27. The system of claim 19, wherein the processing is completed without printing a paper check. 28. A computer-implemented method for processing an online payment for an item, the method comprising: receiving information from a user corresponding to the online payment for the item, the information from the user being received through a graphical user interface, the information from the user including an authorization to pay for the item using an electronic check; creating an electronic (X9.37) image file of an authorized demand draft based on the authorization received from the user, the electronic (X9.37) image file of the authorized demand draft being created directly from the information provided by the user through the graphical user interface; transmitting the electronic (X9.37) image file directly to the Federal Reserve; and receiving funds from the Federal Reserve based on the electronic (X9.37) image file, wherein the funds are received from the Federal Reserve substantially in real-time relative to a time of the transmission of the electronic (X9.37) image file to the Federal Reserve. 29. The method of claim 28, wherein the processing is completed without printing a paper check.
http://www.americanbanker.com/issues/178_219/how-big-banks-killed-a-plan-to-speed-up-money-transfers-1063631-1.html?zkPrintable=1&nopagination=1 Quote: ________________________________________ First of two parts. In the United Kingdom, you can send money to someone else's bank account within a couple of hours. In Mexico, the process takes no more than a minute or two. In Sweden, it happens even faster, via mobile phones. Here in the United States, electronic payments move at a snail's pace by comparison. Times vary by bank, but it's common for three, four or five days to elapse before the cash arrives in the recipient's account. Remarkably, it's often speedier to pay someone by scribbling out a paper check than it is by transferring funds electronically, thanks to check imaging technology. "The check system can clear items same-day. So we're a little bit behind the check world even," says Norman Robinson, president of EastPay, an organization that represents Southeast U.S. banks on payments issues. If checks, a payment method that's hundreds of years old, can be updated for the Internet age, why can't America's four-decade-old electronic payments system? Blame the big banks. More than two years ago, the staff of Nacha, the industry-owned group that sets the rules for the automated clearing house network, decided it was time to modernize the system. The group's proposal was far more modest than the near-real-time systems that now exist in numerous other countries. If a U.S. bank submitted a payment before 2 p.m. Eastern time on a weekday, it would be settled around 5 p.m., rather than waiting until the following weekday, or perhaps the day after that. The plan, known as Expedited Processing and Settlement, may not have been a step into 21st Century, but at least it would remodel a system built in the 1970s and 1980s. But even this incremental move was too much change for a bloc of big banks that played a decisive role in torpedoing the proposal in a vote in August of last year. The episode, which happened mostly outside of public view, demonstrated the enormous power that a small number of large commercial banks wield over the U.S. payments system. Their interests prevailed over the wishes of many smaller banks, corporations, and consumers, all of whom would benefit from a faster, broadly accessible way to make electronic payments. And because Nacha's balloting process is shrouded in secrecy, these large banks didn't leave any fingerprints. "In this space, a relatively small number of banks decide whether progress happens," says Jason Marshall, a former payments executive at Wal-Mart who now works at the payments technology firm InComm. "And with a lack of transparency, the small number of banks that hold back the payments system don't even have to show their face." A Bid to Stay Relevant A faster ACH network would unquestionably be a boon for many consumers and for businesses that rely on the payments system. Families on the verge of missing the deadline for a utility bill payment would benefit. So would companies that must pay vendors right away. In a situation where a worker fails to submit a timesheet on time, the employer could make a speedier direct deposit. "I think there is a definitely a need in the business community," says Anita Patterson, director of treasury services at Cox Enterprises, one of the country's largest privately held companies. "I've never met a knowledgeable corporate finance professional who's against it," adds Marshall, the former Wal-Mart executive. In all, the individuals and businesses involved in about 25% of all ACH payments would benefit from same-day settlement, estimates Steven Cordray, project director at the Federal Reserve Bank of Atlanta's Retail Payments Office. Community banks also have a powerful incentive to support the faster movement of payments within the ACH network — because small banks can't build proprietary payments systems like some of their bigger competitors can. "I feel that about 70% of the banks in the United States are very supportive of it," says the Atlanta Fed's Cordray. In April, the Independent Community Bankers of America went on the record in favor of same-day ACH, after earlier voicing reservations with some aspects of Nacha's proposal. "From a community bank standpoint, we absolutely feel that same-day needs to happen," says Cary Whaley, ICBA's vice president of payments and technology policy. The biggest advantage that the ACH network has over other payment systems is its ubiquity. Every one of the country's 6,940 banks and 6,681 credit unions is connected. "Unless you have the surety of reaching all end points, the value for anyone is diminished," says Jan Estep, president of Nacha. "So we're really trying to maintain ubiquity." But some observers worry the network's value is eroding as faster payment technologies emerge. "There are initiatives that could compete and establish a more dominant role," says Beth Robertson, a payments industry analyst. "If existing networks want to play, as things evolve, they have to be willing to innovate." Setting the Bar High When the vote was held last summer, Nacha had 48 members, including 31 financial institutions. That list includes many of the nation's largest banks: JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (NYSE: C), Wells Fargo (WFC), and Bank of New York Mellon (BK), among others. Twenty-two of the 31 financial institutions on the Nacha membership list have more than $50 billion in assets, and only five of them have less than $15 billion in assets. For a small bank, joining Nacha is costly. The group would not disclose its exact membership dues, but says the figure is less than $40,000 annually. In addition to the 31 financial institutions, Nacha has 17 members known as regional payment associations; they represent the views of financial institutions in specific geographic areas, including both small banks and large ones. Under the rules, banks that are direct members of Nacha can also be members of regional payment associations. This system has prompted grumbling by some community bankers that the voice of the big banks is given too much weight. "Ultimately, it's way skewed toward them," says Sam Vallandingham, president of First State Bank in Barboursville, W.Va. There are two ways for a Nacha ballot proposal to pass. Both require a supermajority of the vote. The first method of passing a measure is straightforward: 75% of the group's 48 members must vote in favor. Under the second method, the votes of member financial institutions are weighted according to the volume of payments they process, and the votes of regional payments associations are weighted by the number of institutions they represent. Nacha would not disclose the weighting formulas that are used under the second method, but says that in order for a measure to pass this way, it needs to garner two-thirds of the weighted vote. And there's one more hurdle a ballot measure has to clear: if one of those first two thresholds is met, but two-thirds of either the financial institution members or the regional payment associations vote no, the proposal fails. Nacha sent out a request for comment on the Expedited Processing and Settlement plan in September 2011. Comments the association received influenced the language of the eventual ballot proposal. That five-page ballot proposal was sent to Nacha's 48 members in July 2012. Voters had roughly a month to cast their confidential votes electronically. Ultimately, a majority of Nacha's members voted yes, according to the organization. But the proposal fell short of the supermajority needed under both voting methods. "We set a pretty high bar with how rules get passed," Nacha's Estep acknowledges. "When 75% have to be there, you know, that is a really high bar." Combined with the rule that gives more say to banks depending on their transaction volume, the 75% threshold effectively gives the biggest banks veto power. And by all accounts, they used it in this case. Litany of Objections Banks that opposed Nacha's ballot measure registered a number of objections. They raised concerns about the price tag of implementing the changes, especially at a time when the industry was adjusting to a wave of new regulatory costs. They voiced fears that fraud losses would increase as the time provided to settle a transaction got smaller, since there would be fewer hours to detect malfeasance before the payment was finalized. Opponents questioned whether the plan's upside would accrue only to those banks whose customers initiate electronic payments. And they expressed doubts about whether the proposal would yield sufficient benefits for West Coast banks, which would need to submit their transactions by 11 a.m. Pacific time to squeeze into the same-day window. The proposal's supporters contend that some of those worries are overblown. For example, faster processing would allow banks to spot suspicious activity sooner, and could actually reduce overall fraud, they argue. "I think the industry is much more ready for this than the industry understands," says Bob Steen, chief executive officer of Bridge Community Bank in Mechanicsville, Iowa, who has been a vocal advocate of speeding up the payments process. But the big banks had other reasons to resist the Nacha plan. The plan's most visible foe turned out to be The Clearing House, which acts as the trade group for the nation's largest commercial banks. The Clearing House's list of owners overlaps heavily with membership in Nacha. In fact, the ten biggest financial institutions in Nacha — JPMorgan, Bank of America, Citi, Wells Fargo, Bank of New York Mellon, U.S. Bank, PNC Financial, Capital One Financial, TD Bank and BB&T — are also co-owners of The Clearing House. A Clearing House official acknowledged that fewer than half of its bank owners supported the Nacha proposal, without naming specific banks. "There were more that did not than did," says Dave Fortney, senior vice president for product development and strategy at The Clearing House. "But it wasn't overwhelming." Nacha did not release any of the comment letters it received, so individual banks never had to take a public stand on the issue of faster electronic payments. But various industry groups, including The Clearing House and the American Bankers Association, have made their comments public. The Clearing House's letter argues that the Nacha proposal does not present a "sound business case" for same-day payments, or allow banks to "recover the cost of their implementation without internal subsidies." In a similar vein, the ABA recommended that Nacha determine "the effect of this change on banks' other payment products." The trade groups' letters don't say this explicitly, but many observers believe that some big banks were worried a faster ACH service would hurt their revenue from wire transfers. "I do think it is one of the more significant factors," says Robertson, the payments industry analyst. "It's not one that everyone is going to readily admit." Steve Keneally, a vice president at the ABA, acknowledges that some banks worried their wire transfer revenue might be cannibalized by a faster ACH service. Nacha's plan would have allowed same-day payments of up to $25,000, so banks might have lost certain wire transfers below that threshold. "That's an issue that I'm sure all the banks that do have active wire rooms considered," Keneally says. Backers of a faster ACH network also suspect that some big banks opposed the measure because they are looking to build their own proprietary electronic payment systems, which could give them a leg up over smaller banks. Bank of America, JPMorgan and Wells Fargo are currently building one such system — known as clearXchange — which will facilitate person-to-person payments. American Banker asked representatives of the nation's four largest commercial banks about how they voted on last year's faster payments proposal. JPMorgan, Bank of America and Wells Fargo all refused to discuss the matter. Citigroup, however, confirmed that it voted no. Changes to the payment system require "broad industry consensus," along with "a relatively simple path for financial institutions to adapt" and "a reasonable cost," says Citi spokeswoman Nina Das. What Next? One question raised by the episode is why a minority of Nacha's megabank-heavy membership should be able to kill a proposal that carries major consequences for the entire industry. Nacha officials argue the 75% voting threshold is set appropriately high. "We want rules to have broad-based industry support," says Michael Herd, the group's managing director for ACH network rules. The speed of the payments system is also vitally important to U.S. consumers and businesses. And while these parties can submit comments on Nacha proposals, they don't get a vote. In Nacha's view, it's appropriate that only banks and credit unions decide the group's rules. "Because they are the institutions where the buck stops," Estep says. "They need to warranty the funds behind those transactions." But if the banking industry can't agree on relatively small improvements to a creaky old payments system, how can it possibly find common ground on more sweeping changes? Is the ACH network doomed to be surpassed by faster-moving proprietary networks like clearXchange and PayNet, a service developed by the bank technology vendor FIS? If the industry cannot act on its own, the Federal Reserve Board could, eventually, mandate improvements. So far the Fed is moving slowly, but it's showing signs of dissatisfaction with the status quo. The Fed, which has offered an optional, little-used same-day service for the last three years, was strongly in favor of last year's Nacha proposal, which would have required the entire industry to participate in same-day settlement. "When it made its appearance in 1974, the automated clearing house was, at best, a next-day batch clearing and settlement system," Sandra Pianalto, president of the Federal Reserve Bank of Cleveland, said in a speech last year. "And so it remains today, almost 40 years later." Dave Birch, an electronic payments consultant in the United Kingdom, notes that his country's Faster Payments system was not the result of a collective push by the nation's banks. "They were made to do it by the regulators," he says. "And I think in time that's what will have to happen in the U.S." Next: Is the banking industry capable of modernizing electronic payments on its own, or is a push from the Fed necessary? ________________________________________