MoneyGram Expands Its Electronic Bill Payment Capabilities With Acquisition of ACH Commerce

MINNEAPOLIS, MN ? MoneyGram International, Inc., today announced it has reached an agreement to acquire ACH Commerce L.L.C., an ACH payment processor based in Tennessee. The acquisition, which will be completed in the second quarter of 2005, will bring MoneyGram an ACH payment business that can serve as a platform for expanding MoneyGram?s line of payment services.

?This is an exciting acquisition for MoneyGram,? said Phil Milne, president and chief executive officer for MoneyGram International. ?ACH Commerce is a leading ACH processor with impressive technology, and it will provide us with the systems platform and expertise to build our bill payment business into a multi-faceted, full-cycle service.?

?We are excited to become part of the MoneyGram team,? said Deborah Hickok, president and chief executive officer of ACH Commerce. ?We are confident that by combining our strengths we can continue to bring solid, innovative payment solutions to the market while continuing to provide the highest level of service our loyal corporate and financial institution clients have come to expect.?

Hickok, who recently was named to the Federal Reserve Board?s Consumer Advisory Council, founded ACH Commerce in 2000 in the community of Ooltewah, Tenn. The company today provides a variety of automated clearing house (ACH) services to merchants, billers and the banking community. The company handles phone and Web-based transactions, high-speed check conversion with remittance processing, check re-presentment, direct debit, direct deposit, cash concentration, authentication and verification, data conversion and customer integration.

Financial terms of the acquisition were not disclosed but ACH Commerce presently will remain in Tennessee. Hickok and her staff will become employees of MoneyGram?s Global Funds Transfer Group, and provide a strategic addition to the company?s current bill payment line-up, which now includes urgent bill payment via MoneyGram?s ExpressPayment service and a walk-in utility bill payment service.

With the addition of ACH Commerce?s services, MoneyGram will provide both consumers and billers with a full spectrum of payment choices, which will complete the bill payment cycle from payment origination to reporting and reconciliation. These services initially will focus on one-time ACH, recurring ACH, and credit and debit card transactions via the phone and expand to additional payment channels in coming months.