Interactive Voice Response System Now Available Nationwide

SAN ANTONIO, Feb. 25 /PRNewswire-FirstCall/ -- Payment Data Systems, Inc. (OTC Bulletin Board: PYDS - News) today announced the nationwide roll-out and immediate marketplace availability of its proprietary Interactive Voice Response (IVR) system for billers and merchants.

Payment Data Systems' proprietary IVR service allows consumers to pay their bills with credit cards or checks (ACH) via a touch-tone telephone. This new state-of-the-technology platform provides the ultimate in flexibility and efficiency of processing and cost control for consumer payments and service.

Payment Data Systems President and COO Louis Hoch, said, "We are pleased to announce the immediate nationwide availability of our proprietary Interactive Voice Response technology. Our IVR technology provides clients with an industry superior, highly adaptive and customizable platform to not only process payments for credit cards and ACH transactions, but also to provide significant cost savings by allowing for access to extensive consumer account services."

The architecture of Payment Data Systems' IVR technology allows billers and merchants to accept payments via direct dial-in from a consumer location or through a direct transfer from a biller/merchant Customer Service Representative (CSR) during a call. Additionally, the Company's IVR platform is engineered to deliver significant savings to client companies, which can utilize the IVR technology to direct calls away from costly, "live" CSRs, to automated CSRs that are able to provide account specific information 24/7, 365 days per year.

Larry Morrison, vice president of Business Development for PDS said, "Our Interactive Voice Response technology, coupled with our integrated services delivery strategy, raises the bar of performance expected for payment processes, delivering unique, highly-customizable platforms for companies that desire highly-effective and efficient payment processing while at the same time allowing their consumers a great deal of flexibility."

About Payment Data Systems, Inc.

Payment Data Systems, Inc., (PDS) is an Integrated Payments Solution Provider delivering comprehensive, cost-effective solutions to billers and merchants 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 www.otcfn.com/pyds .

PDS offers unique products that can be implemented more quickly and less expensively than the traditional methods, as its solutions offer a full range of payment processing capabilities coupled with superior services. PDS services allow for: one time and recurring ACH debits and credits, ACH lockbox and RCK services; Internet pay acceptance of credit cards and checks; telephone pay to Customer Service Representatives for acceptance of credit cards and checks; Interactive Voice Response systems which completely automate the payment receiving process; and data warehousing that enables storage and retrieval of all payment history from one location. PDS products and services allow for the management of a single, comprehensive storage and retrieval system that provides clients with consolidated tracking and reporting of all payment types regardless of source or channel.

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.

Contact: Geoffrey Eiten, Investor Relations for Payment Data Systems, (781) 444-6100 x613 or geiten@otcfn.com .


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Source: Payment Data Systems, Inc.

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