Payment Data Systems and Paymerica Establish Multi-Year Agreement for Payment Services

Thursday September 18, 10:50 am ET


SAN ANTONIO, Sept. 18 /PRNewswire-FirstCall/ -- Payment Data Systems, (OTC Bulletin Board: PYDS - News) an Integrated Payments Solution Provider, announced today that it has signed Paymerica, LLC. to a multi-year contract to provide a fully integrated suite of electronic payment services.

This agreement provides both Payment Data Systems and Paymerica with many positives. Payment Data, on an exclusive basis, will provide to Paymerica its integrated payments solutions that incorporates, among other services, web- based one-time and recurring payments, Interactive Voice Response for telephone payments, and a full range of ACH processing capabilities from check truncation to re-debit processing.

By virtue of this agreement Paymerica through its established broad-based network of successful sales agents can begin leveraging the reach of Payment Data Systems services into the utility and other industries. The utility industry, in particular, has demonstrated its ability to provide technological leadership in that it was among the first and most successful industry groups to implement electronic bill presentment for consumers.

For Paymerica's customers, the Payment Data Systems solutions will provide the most comprehensive form of payment methods for consumers through flexibility of choice and timing. This will provide the biller greater customer loyalty, competitive advantage, improved processing controls, and cost savings.

With an experienced nationwide sales force, and over fifteen years in the Payments industry, Paymerica has seen explosive growth in its merchant base in the last year. Through partnerships like PDS and a dedicated staff, Paymerica is well positioned for impressive growth through the end of the year and beyond.

Larry Morrison, vice president for business development at Payment Data Systems said, "We are very excited to have formed this strategic alliance with Paymerica. Through their extensive and respected sales agent network and the existing industry relationships, we have a very large base of customers to which we can market our payment services. Paymerica will concentrate on the Utilities Industry, which is one of the leading Industries today in demand of our integrated payment solutions."

Louis Hoch, president and COO of Payment Data Systems stated, "Because of Payment Data Systems' heritage of Billserv, we have already proven extensive understanding and expertise in this particular industry segment. We find that our services, being offered in both a biller pay and a consumer convenience fee model, are a comprehensive fit for both public and privately owned utilities. Paymerica's existing relationships with utilities should result in new business relationships for both of our companies.

Charles Yancey, Director of Paymerica said, "Many industries require a more sophisticated menu of payment options and technology. We want to provide our sales force with the tools they need to be competitive in these vertical markets. We are confident that our partnership with Payment Data Systems will enable Paymerica to provide these industries with the solutions necessary to cost-effectively streamline their billing."

About Payment Data Systems, Inc.

Payment Data Systems, Inc., is an Integrated Payments Solution Provider delivering comprehensive, cost-effective solutions to billers and retailers for the processing and management of electronic payments via the Internet, point of sale, or payments taken by Customer Service Representatives or an Interactive Voice Response (IVR). For additional information, visit www.paymentdata.com or call 210.249.4100 or ir@paymentdata.com .

Paymerica, LLC.

Paymerica, LLC. is a registered ISO/MSP providing innovative and cost- effective payment solutions to a wide variety of merchant types. For additional information, visit www.paymerica.com or call (877) 870-8125.

With the exception of historical information contained in this release, this release includes forward-looking statements made under the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.

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Source: Payment Data Systems, Inc.