Press Release Source: Payment Data Systems, Inc.

United Way of San Antonio and Bexar County to Realize Benefits of On-line Giving

SAN ANTONIO, April 13 /PRNewswire-FirstCall/ -- Payment Data Systems, Inc. (OTC Bulletin Board: PYDS - News) announced today it has delivered the capability for United Way of San Antonio and Bexar County to enhance charitable giving from individuals through on-line credit card merchant services. United Way of San Antonio's new online donation site is located on the home page of its public Web site at www.unitedwaysatx.org .

Payment Data Systems President and COO Louis Hoch said, "We anticipate that our systems would enhance charitable giving from the local community throughout the year, due to the flexibility and convenience these solutions provide. It appears based on early results that transaction dollars processed could exceed our expectations."

Hoch continued, "The community will clearly be the beneficiary of this increased giving. The services delivered through the United Way-funded agencies work to enhance the quality of life for thousands of children and families in San Antonio. We are proud to be a facilitator in raising support for United Way's very important programs."

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 .

Contact: 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.