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REGIONAL ROUNDUP

Electronic Clearing House to Take $650,000 Loss

July 06, 1993

Electronic Clearing House Inc., an Agoura Hills-based firm that provides merchants with customer credit card and check approval services, will absorb $650,000 in operating losses from the sale of an office building, higher-than-expected charge-backs from merchants and termination of certain telemarketing accounts.

In selling the Reno, Nev., commercial office building for $1.35 million, the company took a $173,000 loss but received a $500,000 infusion of much-needed cash. The company also said it lost 1,225 jointly processed merchant accounts in a settlement of a credit card processing agreement with Truckee River Bank.

Last year, four of the company's merchants allegedly used stolen credit cards to defraud Electronic Clearing House. Management of the company, which has not earned an annual profit since fiscal 1988, said it anticipates a substantial loss in the fourth quarter, which ends Sept. 30.

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