Payment Data Systems Receives MasterCard® International MSP Designation
MasterCard International Approves Member Service Provider Designation for Program Services

San Antonio, TX June 20, 2006 Payment Data Systems, Inc. (OTC BB: PYDS), an integrated electronic payments solutions provider, announced today that it has received approval from MasterCard International to carry the Member Service Provider (MSP) designation for program services.

This designation allows Payment Data Systems (PDS) to become a member service provider providing program services for MasterCard® gift and prepaid cards, issued through MetaBank. PDS is a registered Independent Sales Organization (ISO) of MetaBank.

“We are very pleased to receive this designation from the association,” said Michael Long, chairman and CEO of PDS. Long added, “This is a significant milestone in the history of our company. It allows us to couple our products with a strong, viable, and highly recognized brand such as MasterCard as we prepare to participate directly with MasterCard issuers in the vast and growing prepaid card marketplace.”
 
About Payment Data Systems, Inc.

Payment Data Systems is an integrated payment solutions provider to merchants and billers. The organization provides an extensive set of products to deliver world-class payment acceptance. Payment Data has solutions for merchants, billers, banks, service bureaus and card issuers. The strength of the company is its ability to offer specifically tailored solutions for card issuance, payment acceptance and bill payments.

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

Payment Data holds the exclusive rights to market the Carmen Electra Prepaid MasterCard® and Carmen Electra Gift MasterCard®. To receive updates on the card program sign-up at www.carmencard.com.

Payment Data's intellectual property includes U.S. Patent Number 7,021,530 that relates to bill payments made with debit and stored value cards.

For additional information, visit www.paymentdata.com. Contact Michael Long for Investor Relations information at 210.249.4040 or email at ir@paymentdata.com.

About MetaBank

MetaBank is a federally chartered savings bank headquartered in Storm Lake, Iowa. Meta Financial Group, Inc.® is the bank holding company for MetaBank, MetaBank West Central, Meta Payment Systems®, and Meta Trust Company®. The Meta Payment Systems division of MetaBank based in Sioux Falls, South Dakota, serves banks, processors, and third party marketers by providing prepaid cards, credit cards, ACH origination, merchant acquiring, ATM sponsorship, and money transfer. For more information call 605.275.8052 or visit http://www.metacash.com.

 
Payment Data Systems, Inc.
Michael Long
Chairman and CEO
phone: 210-249-4040
 
  
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