Payment Data Systems Reaches New Processing High for July 2007

- Management Expects Monthly Increases to Continue Through the Rest of the Year-
 
     

San Antonio, TX August 7, 2007 Payment Data Systems, Inc. (OTCBB: PYDS), an integrated electronic payments solutions provider, today announced that its credit card dollar volume processed in July was its highest for any month to date. On an unaudited basis, July's dollar volume rose 35% from the July 2006 level. Based on August processing levels for the first seven days of the month, we project that August will also be a new record month for volume and expect a processing increase for the third quarter of over 50% as compared to the same period in 2006 and greater than 30% from the second quarter of this year.

Michael Long ,CEO, commented, "We are thrilled to see the third quarter continue building on the momentum generated in our record second quarter, as our processing portfolio grows from our sales efforts. We anticipate that the trend of increasing credit card volume will continue through the third quarter and keep us on pace for another volume record for dollars processed in a quarter and the year."
 

About Payment Data Systems, Inc.

Payment Data Systems, Inc. is an integrated provider of world class electronic payment solutions to merchants, billers, banks, service bureaus, and credit and stored-value card issuers. PDS specifically tailored solutions manage critical points along the full spectrum of the transactional chain, ranging from card issuance to payment acceptance to electronic bill payment.

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 license to market the Natalie Gulbis Gift MasterCard (www.nataliemastercard.com), the Carmen Electra Gift MasterCard (www.electragift.com) and the Carmen Electra Prepaid MasterCard (www.carmencard.com).

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