Payment Data Systems Signs Exclusive Contract With United Way of San Antonio and Bexar County


SAN ANTONIO, March 17 /PRNewswire-FirstCall/ -- Payment Data Systems, Inc. (OTC Bulletin Board: PYDS - News) today announced it has signed an exclusive, multi- year merchant services and credit card gateway agreement with the United Way of San Antonio and Bexar County in Texas.

Payment Data Systems President and COO Louis Hoch said, "The United Way has a long standing commitment to ensuring that the greatest portion of its charitable receipts goes to the needs it meets, rather than to overhead or operating expenses. This new program with the United Way of San Antonio and Bexar County will lower costs for the organization, improve collection rates and ensure an overall improvement over their current procedures."

Hoch continued, "Given the charity's current payment processing run rates, we can reasonably expect to process more than a half-million dollars in annual giving on behalf of the United Way."

Terms of the agreement calls for Payment Data Systems to provide credit card gateway and merchant processing services and to implement a virtual terminal application for the United Way. The United Way of San Antonio and Bexar County will utilize the Payment Data Systems IPS Credit Card Gateway(TM) to allow the charity to integrate with its established national online pledging system that automates an organization's workplace charitable giving campaign.

Payment Data Systems provides a superior payment processing solution to a range of companies that process a significant number of payments across multiple platforms because its technology allows for management within a single comprehensive storage and retrieval system that provides customers consolidated tracking and reporting of all payment types regardless of source or channel.

About United Way of San Antonio and Bexar County

Since the first campaign in 1939, United Way has grown into the largest and most respected, private health and human care service organization in Bexar County. They fund 120 high-quality programs at 70 agencies. These programs help the disabled and elderly, provide affordable childcare, strengthen families and reduce family violence, improve mental and physical health, and invest in children and youth. For additional information on United Way, visit www.unitedwaysatx.org or call Leslie Sapadin, (210) 352-7000 or lsapadin@unitedwaysatx.org .

About Payment Data Systems, Inc.

Payment Data Systems, Inc. is an Integrated Payments Solution Provider that delivers 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).

Payment Data Systems' solutions include services and products that can be implemented more quickly and less expensively than traditional methods of utilizing multiple payment companies to process different types of payments, because its solutions offer a full range of payment processing capabilities, all managed within a single platform. Current service offerings include: one time and recurring ACH debits and credits, ACH lockbox and RCK services, Web pay acceptance of credit cards and checks, telephone pay acceptance of credit cards and checks, Interactive Voice Response systems which automate the payment receiving process, and data warehousing that enables the storage and retrieval of an entire payment history from one location.

For more information, visit www.paymentdata.com or www.otcfn.com/pyds or ir@paymentdata.com .

Contacts: Geoffrey Eiten, Investor Relations, (781) 444-6100 x613 or geiten@otcfn.com .

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.
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