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billx.com Increase In Net
Margins To Improve Cash Flow for Subsidiary
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Online Bill Payment and Stored Value Cards Now Linked -
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San Antonio, TX
Sep 06, 2005 Payment Data Systems, Inc. (NASDAQ
OTCBB: PYDS) an integrated electronic payments solutions
provider has completed its transition into its own,
proprietary, electronic bill payment engine at
www.billx.com.
This transition should provide a significant increase
in the net margin percentages we experience from the
service as well as provide the realization of the
increased functionality we announced last year.
A significant part of this new implementation of
billx.com’s functionality is the ability to link a stored-
value card (SVC) into the system as a bill-paying vehicle.
This now adds a new and unique payment vehicle to the mix
of traditional banking accounts such as checking and
savings. The feature provides the community of 40 million
plus persons that are defined as unbanked and underbanked
to have the same advantages of online financial management
as those that utilize those more traditional bank
products. It is also an attractive feature to over- banked
persons that have a need to consolidate bank account
payments and move funds among different financial
institutions.
We believe the expectation of increased interest in
Private Labeled sites is being realized based on the
inquiries we are now receiving. A great deal of this
interest is being generated by various debit card
companies who want to have their SVCs and bill payment
linked in an online environment.
The following is a brief
description of the key strategic and differentiating
functions of billx.com:
®
for their eBay®
or other online auction payments.
Payment Account Transfers – Currently, consumers
have the ability to set up numerous stored value cards,
checking, savings, brokerage and money market accounts
from which they can make payments. Now, consumers have
the ability to conveniently transfer money between these
payment accounts allowing consumers to manage all their
finances in one location.
billx.com Private Label
Offering – Card Issuers, Portals and Financial
Institutions that choose to offer online facilities to
their subscribers/consumers for bill payment can provide
billx.com functionality as a customer branded offering.
billx.com Co-Label Offering – Card Issuers, Portals
and Financial Institutions that choose to share labeling
rights with billx.com in order to avoid capital
expenditure for a private label solution and still have
access to all functionality.
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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
www.paymentdata.com.
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Payment Data Systems, Inc.
Michael Long
Chairman and CEO
phone: 210-249-4040
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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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