[COMPANY LOGO OMITTED]                                              EXHIBIT 99.2


               ELECTRONIC CLEARING HOUSE INC. CLOSES $3.0 MILLION
                                PRIVATE PLACEMENT

        o ANNOUNCES NEW $3 MILLION LINE OF CREDIT WITH BANK OF THE WEST

CAMARILLO,   CALIF.  -  OCTOBER  31,  2003  -  Electronic  Clearing  House  Inc.
(Nasdaq:ECHO),   a  leading  provider  of  electronic  payment  and  transaction
processing  services,  announced  today that on October 30, 2003, it completed a
private  placement  of  437,957  shares  of its  common  stock to  institutional
investors  resulting  in gross  proceeds  to the Company of  approximately  $3.0
million. After commissions and expenses, the net proceeds to the Company will be
approximately $2.8 million.

The Company  intends to use the private  placement  net proceeds to increase the
capacity of its payment processing infrastructure,  expedite certain development
efforts, provide working capital to support the expansion of its check guarantee
business,  and for general corporate  purposes.  Roth Capital Partners served as
the placement agent for the private placement of common stock.

In  addition,  the  Company  announced  the  completion  of a new line of credit
facility with Bank of the West. The line of credit provides up to $3 million for
working capital purposes.

Jody Barry, CEO of Electronic Clearing House, commented: "This private placement
strengthens  our balance sheet and provides ECHO with the financial  flexibility
to execute our growth  strategy.  As we look to the future,  we expect continued
strong  demand for our check  products and solid  growth in our  MerchantAmerica
sales channel. We are also very pleased to expand our positive relationship with
Bank of the West."

The Common Stock has not been  registered  under the  Securities Act of 1933 and
may not be  offered  or sold in the  United  States  absent  registration  or an
applicable exemption from registration  requirements.  The company has agreed to
file a registration statement to register future resales of the shares.

ABOUT ELECTRONIC CLEARING HOUSE, INC. (ECHO)
ECHO  (www.echo-inc.com)  provides a complete solution to the payment processing
needs of merchants, banks and collection agencies. ECHO'S services include debit
and  credit  card  processing,   check  guarantee,  check  verification,   check
conversion, check re-presentment, check collection, and inventory tracking.

SAFE HARBOR  STATEMENT  UNDER THE PRIVATE  SECURITIES  LITIGATION  REFORM ACT OF
1995:  ANY  STATEMENTS  SET  FORTH  ABOVE  THAT  ARE NOT  HISTORICAL  FACTS  ARE
FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE
ACTUAL  RESULTS  TO  DIFFER   MATERIALLY  FROM  THOSE  IN  THE   FORWARD-LOOKING
STATEMENTS.  EXAMPLES  OF  FORWARD-LOOKING  STATEMENTS  INCLUDED  IN THIS  PRESS
RELEASE INCLUDE THE POTENTIAL FOR EXPANSION OF ECHO'S CHECK  GUARANTEE  BUSINESS
AND THE CONTINUED  STRONG DEMAND FOR ECHO'S CHECK





PRODUCTS.  POTENTIAL  RISKS AND  UNCERTAINTIES  THAT MAY CAUSE ACTUAL RESULTS TO
DIFFER MATERIALLY INCLUDE,  BUT ARE NOT LIMITED TO, SUCH FACTORS AS FLUCTUATIONS
IN DEMAND FOR THE  COMPANY'S  PRODUCTS AND  SERVICES,  THE  INTRODUCTION  OF NEW
PRODUCTS AND SERVICES,  THE COMPANY'S ABILITY TO MAINTAIN CUSTOMER AND STRATEGIC
BUSINESS  RELATIONSHIPS,   TECHNOLOGICAL  ADVANCEMENTS,  IMPACT  OF  COMPETITIVE
PRODUCTS AND SERVICES AND PRICING,  GROWTH IN TARGETED MARKETS,  THE ADEQUACY OF
THE COMPANY'S  LIQUIDITY AND FINANCIAL STRENGTH TO SUPPORT ITS GROWTH, AND OTHER
INFORMATION  DETAILED FROM TIME TO TIME IN THE COMPANY'S FILINGS WITH THE UNITED
STATES SECURITIES AND EXCHANGE COMMISSION.

CONTACT:
Donna Rehman, Corporate Secretary              Crocker Coulson, Partner
(805) 419-8700                                 CCG Investor Relations
Electronic Clearing House, Inc.                818-789-0100
Camarillo, CA                                  E-MAIL: crocker.coulson@ccgir.com
URL:http://www.echo-inc.com
E-MAIL:corp@echo-inc.com
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