TrustCash Holdings, Inc. (Pinksheets:TCHH - News) today announced it has been working with representatives from Electracash to add Electracash's ACH processing functionality to its suite of services.
The addition of ACH is an important step in broadening the marketability of the Trustcash payment system. This advance will provide Trustcash the opportunity to tap into the large ACH processing market.
The following provides some insight into the business of ACH processing:
1. What is ACH? According to NACHA (the electronic payments association, www.nacha.org):
The Automated Clearing House (ACH) Network
The ACH Network is a highly reliable and efficient nationwide batch-oriented electronic funds transfer system governed by the NACHA OPERATING RULES which provide for the interbank clearing of electronic payments for participating depository financial institutions. The Federal Reserve and Electronic Payments Network act as ACH Operators, central clearing facilities through which financial institutions transmit or receive ACH entries.
ACH payments include:
�
-- Direct Deposit of payroll, Social Security and other government
benefits, and tax refunds;
-- Direct Payment of consumer bills such as mortgages, loans, utility
bills and insurance premiums;
-- Business-to-business payments;
-- E-checks;
-- E-commerce payments;
-- Federal, state and local tax payments.
The number of ACH payments originated by financial institutions increased to 8.05 billion in 2002, up 13.6 percent from 2001. These payments were valued at $21.7 trillion. Including payments originated by the Federal government, there were a total of 8.94 billion ACH payments in 2002 worth more than $24.4 trillion.
2. In an industry article the website www.ACOM.com declares: "ACH: The Paperless Payment Solution for Today"
In 2000, 41.9 billion checks were issued, compared with 36.7 billion in 2003, a compounded annual rate of decline of -4.3 percent. During the same period, ACH payments grew from 6.2 billion to 9.1 billion, a 13.4 percent compounded annual growth rate. Significantly, while total payments continued to increase, the ratio of checks to ACH payments continued to favor ACH and the trend continues. According to current NACHA reports, there were nearly 14 billion ACH payments in 2005, an increase of 16.2 percent over 2004.
Entire article can be viewed at: http://www.acom.com/windows/collateral_win_WP02.html
About TrustCash
Through its TrustCash brand and website (www.TrustCash.com), TrustCash is a pioneer of anonymous payment systems for the internet. TrustCash developed a business based on the sale of a virtual stored value card that can be used by consumers to make secure and anonymous purchases on the internet. The company markets its TrustCash(TM) payment card, which is sold in denominations ranging from $10 to $200 online. The TrustCash(TM) card is the only "stored value card" produced where no personal data is stored by or available to a vendor or merchant, providing a unique level of both security and privacy to the purchaser.
Cautionary Statement Regarding Forward-Looking Statements
A number of statements contained in this press release are forward-looking statements. These forward-looking statements involve a number of risks and uncertainties, including the sufficiency of existing capital resources, technological changes and uncertainties related to the development of TrustCash's business model. The actual results TrustCash may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.
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