Payment Data Systems Closes Quarter by Surpassing Record for Processing Volumes

 

- 29% Growth in Volume from Second Quarter -

  

San Antonio, TX October 15, 2007 Payment Data Systems, Inc. (OTCBB: PYDS), an integrated electronic payments solutions provider, today announced that its credit card dollar volume processed in September was its highest for any month to date. On an unaudited basis, September's dollar volume rose 64% from the September 2006 level. Credit card dollar volume processed for the third quarter was 52% greater than the same quarter of 2006 and 29% greater than the second quarter of 2007.

Michael Long, CEO, commented, "I am very pleased with our transactions processing results for the third quarter. Each month in the third quarter was better than the last and we grew our volumes at a record setting pace. Since we have already surpassed the volumes generated for all of 2006, we are looking forward to closing out the fourth quarter and year. "

The company will announce earnings for the third quarter on or before November 15, 2007.
 

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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