The subject of this email is bold. But I truly believe tomorrow’s
stock pick is the best penny stock I’ve ever picked.

I’ll tell you why in just a moment…

But first, an update on last weeks stock. It was picked at $0.45
it quickly rallied up within the week to a high of $0.80 per share.

Quite a result, But…

That’s not all. The stock pulled back towards $0.49 at which
I made it last weeks pick again. It proceeded to move exactly
as predicted, and sharply rose to a high of $0.70…

All in all, the same stock allowed you to make a massive gain
two weeks in a row!

If you missed out, don’t worry as I believe this weeks pick is
an even stronger company.

Unless you’ve been living under a rock lately… You’ll have
read about the credit crunch, and the doom and gloom of
the coming recession.

Well the credit crunch has already started hitting US
consumers hard… in fact many adults are now being refused
credit cards (something almost unheard of, two years ago).

But the figures are worse than you’d think… Industry stats
show up to 50% of adults have no credit card or no credit on
their cards.

Meaning… As many as 80 million US adults, do not have the
ability to shop online.

But the big problem, in credit card processing… Faces the
companies selling online, not the consumer.

A problem so serious, it is even putting large businesses
into bankruptcy.

Let me explain…

Frontier Airlines (a Major Carrier) recently filed for bankruptcy,
blaming its credit-card processor.

Frontier said, its credit-card processor demanded a sudden
unexpected jump in collateral… For Frontier this meant a
sharp reduction in cash flow.

The credit card processor, demanded this because of the
increased charge-backs… Especially on high priced items
(like airline tickets).

This has forced credit card processing companies, to
suddenly demand a higher “rolling reserve”. By the way
a rolling reserve is money the airline will put down as
safety for the credit card processors.

This safety deposit is usually 1 or 2 months revenue, which
even at that is a lot of a firms cash flow tied up. But news
sites report, First Data demanded 100% of Frontiers credit
card revenue.

See: http://www.msnbc.msn.com/id/24061790/

So what’s the solution to this problem?

Until recently there hasn’t really been one. One possible
alternative is the “eCheck”…

eChecks are the shortened name for electronic checks.
Instead of writing out and sending a paper check to pay for
items…

Buyers are able to fill out their bank account number and
routing number online. This information is then used to
take payment straight from the senders bank account.

But they currently have just as many problems as credit cards.
You’ see eChecks are currently processed using… What’s
called ACH (Automated Clearing House).

And the process is simple:

The check writer “writes” the eCheck using one of many types
of electronic devices and “gives” the eCheck to the payee
electronically.

The payee “deposits” the Electronic Check, receives credit,
and the payee’s bank “clears” the eCheck to the paying bank.

The paying bank validates the eCheck and then “charges”
the check writer’s account for the check.

The problem is, this system uses the Automated Clearing
House… An electronic network within the U.S… And receiving
the funds from the Payee’s bank takes 3 - 5 days.

Not only that, the eChecks only work with the major banks…
And the delay in processing leaves the merchant open to
Fraud.

And so it’s no surprise eChecks have not taken off online,
because in real life… Checks make up the biggest proportion
of non-cash payments.

Most people don’t realize how big checks are, and they think
credit cards and debit are bigger. According to the Federal
Reserve’s 2007 study of noncash payments:

Check Payments: $41.7 trillion annually
Debit Cards Payments: $1.0 trillion annually
Credit Cards Payments: $2.1 trillion annually

But as I explained, the problem with eChecks is mainly the
waiting time on processing. Where credit cards can take
as little as 5 seconds for the funds to be secured…

Currently eChecks are actually written and then physically
converted into an ACH transaction. Which is what causes
the delay, and leaves online retailers unsure of whether to
trust the payment and deliver goods or wait for the payment
to clear.

So why have I explained this problem?

Well tomorrows stock pick, is a company whom have looked
at the current eCheck model and taken away the biggest
problem.

This firm have developed, what they dubbed:

The “Remotely Created Check”.

Here’s how it works:

Shoppers enter their bank details, just like a normal
eCheck. These details are sent securely to this company
whom print a physical paper check.

This check is then scanned to produce a digital image,
called a check substitute. Surprisingly the original paper
check is then immediately destroyed.

The images are sent to First Regional Bancorp of Century
City, which routes them through the Fed’s image network to
paying banks.

This has one major benefit in comparison to a normal
eCheck. Because digital images are created, they are sent to
the paying bank in a matter of seconds, instead of days.

In fact, eChecks processed on this companies system are
typically accepted in 1 to 3 seconds. Allowing for instant
confirmation funds are available… And eCommerce stores
can feel confident enough to ship orders instantly.

However the system, offers a number of other benefits too:

Firstly, because payments are taken in seconds, and
charge backs are impossible… companies using eChecks
needn’t tie up cash flow in a “rolling reserve”.

This was the problem those using credit cards to take
payments currently face. And this was the problem which
saw Frontier Airlines (a company with $20 billion in assets) file
for bankruptcy.

Secondly, processing rates to the eCommerce stores, and
airlines etc… Are substantially cheaper than with credit cards.
(Whom often charge up to 10% of gross volume processed).

Thirdly, eChecks paid on this system are independently
guaranteed. When a payment is made, the eCheck is
cross referenced against a database of millions of records…
Accessing both local and national negative files of unpaid
checks.

The company is so confident in their authorization system,
eChecks which then bounce (after being authorized) are
reimbursed to the merchant in full within 14 days.

Finally, this system can debit every US checking account,
even accounts that ACH cannot debit. Such accounts include
accounts at many Credit Unions, S&Ls, small banks, brokerage
accounts, business accounts and credit card check accounts.

In fact, this system provides its clients with access to more
customers than any other single payment method.

…I think you get the idea, this company have created a
technology that could be the future of payments online.

And this isn’t just an idea. The system is working, and this
company are currently processing payments with over 50
large U.S. businesses.

Furthermore this company are the first to market with this
system, and are in a unique position to offer fast processing
eChecks with their patent pending, “Remotely Created
Check”.

But, I’ve in fact been watching this company for over two
months now…

And though I could have released the pick two months ago, I’ve
waited for the precise time I believe this stock will rocket.

I’ll be telling you the exact reason, in my email tomorrow
morning.

If you want to be one of the first to read my full report,
have your email inbox open at precisely 9:30AM tomorrow
morning…

That’s when I’ll be able to tell you about all of my findings.

Best Regards,
PH

P.S. For our current 3 best stock picks click here!

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