Payment Data Systems Signs $1,000,000 Contract to Issue 50,000 Prepaid ATM Cards for CSC24Seven.Com

- Positions CSC24Seven.Com for Entry Into U.S. Markets -

San Antonio, TX, May 09, 2006 -- Payment Data Systems, Inc. (OTC BB: PYDS) an integrated electronic payments solutions provider, announced today that it has signed a multi-year agreement with CSC24Seven.Com Ltd., to provide ATM card issuance services for the U.S. markets. The product and product family will be known in the United States by the brand, PaySpark, USA.

This agreement is projected to generate over $1,000,000 in revenue over the term of the three-year agreement. The card program is scheduled to implement in early June and the revenue earned for the current quarter is expected to exceed $70,000.

The cards will be predominately marketed via the Internet at the PaySpark USA website and those of PaySpark USA merchants at www.payspark.com.

Louis Hoch, Payment Data’s president and COO said, “We are very pleased to be able to partner with such a significant and successful company as CSC24Seven.Com as they begin their entry into the United States market. We believe this initial product will be the cornerstone of many innovations to come and this has been proven by their success in Europe.”
 
About Payment Data Systems, Inc.

Payment Data Systems is an integrated payment solutions provider to merchants and billers. We provide an extensive set of tailored products to deliver world-class payment acceptance, processing, and risk/fraud management. Payment Data has solutions for merchants, billers, banks, service bureaus and card issuers. Whether you are in the market for card issuance, payment acceptance or bill payment solutions we have a solution for you.

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

Payment Data is also the exclusive license holder of the rights to market the Carmen Electra gift and prepaid cards. To receive updates on the Carmen Electra 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, prepaid and stored value cards.
Website: http://www.paymentdata.com

About CSC24Seven.Com
PaySpark is a retail brand within the CSC24Seven.com Limited financial services umbrella that offers Internet users and online merchants a cost effective means of financial exchange.

Consumers access and manage their accounts via the PaySpark website. www.payspark.com. PaySpark offers merchants an easy to integrate API to facilitate online consumer purchases and online merchant payments to consumers. In addition consumers can access their funds via traditional real-world methods at ATMs and at retail locations.
 
Payment Data Systems, Inc.
Michael Long
Chairman and CEO
phone: 210-249-4040
 
  
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