Payment Data Systems Achieves Record Month and Quarter in Dollar Volume Processed; Expects Even Higher Q3 Volume
 
San Antonio, TX July 10, 2007 Payment Data Systems, Inc. (OTCBB: PYDS), an integrated electronic payments solutions provider, today announced that its credit card dollar volume processed in June was its highest for any month to date and that the volume processed in the second quarter was also the highest for any quarter in the history of the company.

On an unaudited basis, June's dollar volume rose 54% from the June 2006 level. For the second quarter of 2007, dollar volume leaped 79% from the comparable period last year.

Today's release of volume increases follows closely our announcement on June 6th that we expected Q2 volumes would set a record.

Michael Long ,CEO, commented, "We are extremely pleased with our significant processing increases in the second quarter, as we continue to see increasing results from our sales efforts. We expect that the momentum we have generated in June will continue into Q3 and will allow us to again set another new record for dollars processed in a quarter. Credit card dollars processed is one of our most significant metrics since the majority of our revenues are correlated to it."
 

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 Systems Inc. (OTCBB:PYDS) is a registered ISO/MSP of MetaBank and a registered ISO/MSP and TPS/TPP of Merrick Bank Corp., South Jordan, UT.

Payment Data is a Level One PCI compliant Third Party Servicer.

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.

Website: http://www.paymentdata.com
 
Payment Data Systems, Inc.
Michael Long
Chairman and CEO
phone: 210-249-4040
 
  
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