Payment Data Systems Announces Fourth Quarter 2007 Transaction Processing Volumes

 

Credit Card Processing Volume Exceeds $100 Million in 2007

  

March 13, 2008 Payment Data Systems, Inc. (OTC BB: PYDS), an integrated electronic payments solutions provider, today announced the company's transaction processing volumes for the last two months and fourth quarter of 2007 on an unaudited basis.

November volumes increased significantly with dollars processed gaining 52% and transaction volume growing 49% over November 2006. Our December credit card processing experienced similar gains as our dollar volume increased 64% from the comparable month one year ago and transaction volume in December grew 47% year-over-year.

Volumes for the fourth quarter of 2007 were mixed in that our transaction volumes decreased by 11% from those of the prior year quarter; however, our dollars processed (the metric that drives revenue) was up 45%. The most significant reason for the decline in transaction volumes as well as an effect on dollars is that one of our larger customers needed to adjust some administrative processes within their systems.

For the year of 2007, we set a new record by processing more than $100 million in credit card volume. This is up by 65% over 2006.

Michael Long, CEO of Payment Data Systems, stated, "We are pleased with the overall growth that we experienced in 2007. Looking into early 2008, with the projected addition of the insurance carrier processing volume that is returning after the administrative adjustment effort, we should be processing transactions at new record levels for our company."
 

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).

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
 
  
FORWARD-LOOKING STATEMENTS DISCLAIMER Except for the historical information contained herein, the matters discussed in this release include certain forward-looking statements, which are intended to be covered by safe harbors. Those statements include, but may not be limited to, all statements regarding our and management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, the factors detailed from time to time in our filings with the Securities and Exchange Commission. One or more of these factors have affected, and in the future could affect, our businesses and financial results in the future and could cause actual results to differ materially from plans and projections. We believe that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to our management. We assume no obligation to update any forward-looking statements, except as required by law.