EXHIBIT 99.1


FOR IMMEDIATE RELEASE



              ELECTRONIC CLEARING HOUSE (ECHO) ANNOUNCES IMPACT ON
                     FUTURE RESULTS OF OPERATIONS FOLLOWING
                             U.S. LEGISLATIVE ACTION

CAMARILLO,  CALIF.,  OCTOBER 11, 2006 - Electronic Clearing House, Inc. (NASDAQ:
ECHO),  a leading  provider of  electronic  payment and  transaction  processing
services,  announced  today a portion  of its  business  and  future  results of
operations will be impacted by the recently passed  Unlawful  Internet  Gambling
Enforcement Act of 2006 ("the Act").

The Act is expected to become law on or around  October 13, 2006.  Upon becoming
law, the Act will  prohibit  gambling  businesses  from  accepting any financial
instrument in connection with inappropriate  Internet gambling.  The Act directs
the United  States  Federal  Reserve,  the  Department  of the  Treasury and the
Department  of  Justice  to  develop  regulations,  within  270  days of the Act
becoming law,  which would direct  financial  transaction  providers,  including
payment   processors,   to  identify  and  block   certain  types  of  financial
transactions  connected  with this type of  Internet  gambling.  The text of the
Unlawful  Internet Gambling  Enforcement Act of 2006,  included as Title VIII of
the Safe Port Act,  may be found by doing a search at the  Library of  Congress'
legislative information website, http://thomas.loc.gov.

ECHO provides  back-end  payment  processing  services to merchants  across many
industries.  Several of these  merchants are "Internet  wallet"  providers that,
among other matters,  permit consumers to use funds in those "Internet  wallets"
to participate in gaming activities over the Internet.  Since the passing of the
Act, ECHO's  management has been working to identify the impact on its "Internet
wallet" merchants,  as well as on its business and future results of operations.
As of the date of this  release,  management  has found that, as soon as the Act
becomes law,  several of its "Internet  wallet"  merchants will no longer permit
U.S.  consumers  to  use  funds  in  their  respective   "Internet  wallets"  to
participate in gaming activities (to the extent it was previously permitted). In
addition,  some merchants will gradually phase in those restrictions  before the
expiration of the 270-day regulatory  determination period, and some may seek to
comply with the new regulatory rules.

Regardless  of the actions  taken by ECHO's  "Internet  wallet"  merchants,  the
Company  has  decided  to phase out any  services  related  to check  processing
activities  for  Internet  gaming  before the 270-day  regulatory  determination
period expires. The portion of "Internet wallet" services accounts for less than
10% of ECHO's total revenues. Accordingly, the loss of revenues, and net income,
arising  from these  services  will have a  significant  negative  effect on the
Company's  business and results of  operations  in fiscal 2007.  ECHO expects to
more fully  describe this effect in its  forthcoming  Annual Report on Form 10-K
for the fiscal year ended September 30, 2006.





Joel M. Barry, the Chairman and Chief Executive Officer of the Company,  stated,
"We were  aware  that this  legislative  action,  if  passed,  could  affect our
"Internet wallet" merchants and have previously identified this as a risk to our
check processing  business.  However,  with the continuing  growth of our credit
card  processing  volume and our sales focus on building  other channels for new
check  processing  revenue,  we anticipate  being able to recover the lost check
revenue from the "Internet wallets" in the coming year."


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, and check collection.

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  RELEASE
INCLUDE  STATEMENTS  REGARDING  THE  AFFECT OF THE  UNLAWFUL  INTERNET  GAMBLING
ENFORCEMENT ACT OF 2006 ON THE COMPANY'S  FUTURE RESULTS OF OPERATIONS,  AND THE
COMPANY'S ABILITY TO SUBSTITUTE REVENUE AND NET INCOME IN FISCAL 2007. POTENTIAL
RISKS AND  UNCERTAINTIES  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:
Erin Cox
(310) 854-8319
Financial Relations Board
E-MAIL:ecox@frbir.com

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