Payment Data Systems Has A Banner Month for Most Transactions Processed

- Credit Card Processing Volume and Associated Revenue Continues to Grow -

San Antonio, TX March 22, 2006 Payment Data Systems, Inc. (NASDAQ OTCBB: PYDS) an integrated electronic payments solutions provider, today announced that credit card transactions processed in February were the Company’s highest for any month to date. This achievement makes four consecutive months and nine out of the past ten months in which credit card transactions were higher than the previous month.

Both the transaction and dollar value volumes for February were higher than those for January 2006, our previous highest month. On an unaudited basis, February’s volume was 162% higher than transactions processed and 88% higher than dollars processed in February 2005.

Michael Long, Chairman and CEO of Payment Data Systems, Inc, said, “We are pleased that our processing volumes continue to increase and are optimistic about achieving even higher rates of growth as we move forward."
 
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 Systems, Inc.
Michael Long
Chairman and CEO
phone: 210-249-4040
 
  
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