Payment Data Systems Enhances Bill-Pay Capabilities

- Forms Strategic Partnership with Calnet Business Bank -


SAN ANTONIO, May 26 /PRNewswire-FirstCall/ -- Payment Data Systems, Inc. (OTC Bulletin Board: PYDS - News), an integrated payment solutions provider, today announced significant enhancements to its bill-pay capabilities, including debit cards and walk-in payments.

The Company has signed a strategic agreement with Calnet Business Bank (OTC Bulletin Board: CLNB - News) to integrate Calnet's extensive electronic biller/merchant network into Payment Data Systems' biller pay-anyone network. The Company has also finalized its bill-pay debit card application in preparation for Beta rollout next month.

The agreement with Calnet provides linkage of Payment Data's bill-pay debit card network, as well as cash driven counter payments for bill-pay, into the Calnet payee (vendor/service provider) accounts. In those situations that a payee cannot accept an electronic payment directly from the Payment Data pay-anyone network, PDS will utilize Calnet to provide traditional check printing and mail services to those payees.

Expected delivery of the bill-pay capabilities for debit card and counter payments into Beta customers is set for mid-June of this year.

President and COO of Payment Data Systems Louis Hoch, said, "Calnet is somewhat unique in that they are a technology-driven bank focused on businesses rather than on individual customers. This focus is a perfect fit with Payment Data's consumer-oriented approach to bill payment, for efficient access and utilization of Calnet's supporting capabilities."

Hoch added, "We have, through our agreement with Calnet, lowered our transaction costs for checks and for electronic bill payments for the supported Calnet billers and significantly increased the amount of billers to whom we can transmit electronic bill payments. Therefore we have increased the likelihood of generating enhanced revenue from the agreement earlier than otherwise would have been the possible."

Bob Wood, Calnet's Chief Technology Officer stated, "We are very pleased to be strategically aligned with Payment Data Systems. I can't imagine a more qualified organization to bring to the market debit card bill payments given PDS demonstrated leadership experience in the consumer bill payment industry from their legacy as Billserv, Inc. and billx.com."

About Calnet Business Bank

Calnet Business Bank was formed by a group of highly respected banking professionals and business leaders with the highest standards for personal, high-quality customer service and advanced technology. The bank's infrastructure was built from the ground up with new technology that allows customers to integrate their financial systems with the Bank for complete access and control over their accounts. For more information, please call (916) 927-7000 or visit http://www.calnetbank.com.

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 http://www.paymentdata.com or http://www.otcfn.com/pyds.

Additional products available from PDS include services and products that can be implemented more quickly and less expensively than the alternative of adding multiple payments companies as these solutions offer a full range of payment processing capabilities. These service offerings include: one time and recurring ACH debits and credits, electronic lockbox and returned check services, Web 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 enable the storage and retrieval of all payment history from one location.

These are all managed within a single comprehensive storage and retrieval system thereby providing the customer consolidated tracking and reporting of all payment types regardless of source or channel.

Payment Data is the owner of the electronic bill payment portal, http://www.billx.com. billx.com has the ability to transmit electronic payments to thousands of national billers.

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


FORWARD-LOOKING STATEMENTS DISCLAIMER

Except for the historical information contained herein, the matters discussed in this release include certain forward-looking statements, which are intended to be covered by safe harbors. Those statements include, but may not be limited to, all statements regarding our and management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, the factors detailed from time to time in our filings with the Securities and Exchange Commission. One or more of these factors have affected, and in the future could affect, our businesses and financial results in the future and could cause actual results to differ materially from plans and projections. We believe that the assumptions underlying the forward- looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to our management. We assume no obligation to update any forward-looking statements, except as required by law.



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Source: Payment Data Systems, Inc.