Payment Data Systems Makes Customer Service Representative View System Widely Available

- System Provides Easy to Manage Recurring Payments for Credit Cards and ACH -

SAN ANTONIO, Sept. 8 /PRNewswire-FirstCall/ -- Payment Data Systems, Inc. (OTC Bulletin Board: PYDS - News) today announced the immediate marketplace availability of its proprietary Customer Service Representative (CSR) View system for billers and merchants.
CSR View is an entirely Web-based, intuitive and secure product that allows for billers and merchants to view current credit card and ACH transactions online. Through the use of encryption and secure socket layers, customers of CSR View are supplied a PDS link that does not require installation of any software.

President and COO of Payment Data Systems, Inc., Louis Hoch, said, "This application meets a longstanding need in the marketplace for a payment application that was implemented around the unique needs of a call center employee. We have created a highly adaptive, user-friendly and customizable platform to not only process payments for credit cards and ACH transactions but also to provide consumer account information that is delivered with an up- to-date and highly functional application interface."

The following are key product features and functions available to users:
--Enter and view ACH (checking and savings account) payments for customers
--Enter and view credit card payments for customers, process credits, voids and returns
--Enter and view credit card authorizations with the entry of Post-Authorizations to complete the sale at a later date
--Establish and manage repeating or recurring payments (both ACH and credit card) for customers


CSR View also provides the customer service representatives with the comprehensive search tools to locate detailed ACH and Credit Card transactions entered in the system using a range of searchable information, such as by:

-Account Number
-- Date of transaction
-- Bank Account or Credit Card Account number
-- Last Name and/or First Name search; a partial name search will return transactions for all customers containing the letter combination entered
--Transaction Confirmation number
-- Email Address; a partial email address search will return transactions for all customers containing email addresses that match to the partial address entered

The system functionality is controlled by the internal CSR organization and does not require PDS to provide security access by CSR or system administration.

Connectivity through CSR View is provided to all major card processors:
-- First Data (Nashville and Omaha)
-- Global Payments (including Globalc)
-- Nova
-- Vital (VisaNet)
-- Paymentech (Tampa and Salem)
-- WireCard
-- Cardsystems/Maverick
-- Universal


To find out more about the CSR View product visit http://www.paymentdata.com/v2/csrviewselect.htm .


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).

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.

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.

For additional information, visit http://www.paymentdata.com . Investor information can be found at: http://www.otcfn.com/pyds . Contact: Geoffrey Eiten, Investor Relations, OTC Financial Network, (781) 444-6100 ext. 613.


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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