SOURCE: Payment Data Systems, Inc.

September 25, 2006 07:00 ET

Payment Data Systems, Inc. Earns 410 New Merchant Customers With Mobile Commerce Product for Telephone Credit Card Sales

Brings Company's Total Customer Count to Over 550

SAN ANTONIO, TX -- (MARKET WIRE) -- September 25, 2006 -- Payment Data Systems, Inc. (OTCBB: PYDS), an integrated electronic payments solutions provider, today announced the general availability of a new method for merchants to process credit card sales from remote locations without the need for card terminal devices.

The product is an Interactive Voice Response (IVR) application that allows a merchant or service provider to use a telephone to call a special number in order to enter its merchant ID and card number to process a credit card sale. Once the sale is approved, the system provides real time access from the merchant's accounting department to view the transaction.

The system is specifically designed for:

--  Events, Concerts;
--  Taxis and Limousines;
--  Plumbers and Electricians;
--  Installers and Repairmen;
--  Door to Door Sales;
--  Utility Companies' On-Site Collections;
--  Flea Market Merchants;
--  Plus many others.
    
Features of the program include:
--  Toll Free Access -- No long distance charges;
--  Internet Reporting;
--  Back Office or Home office can immediately view transactions as soon
    as a sale is made;
--  Comes with Web Based Virtual Terminal to Submit Payments Via the
    Internet;
--  Integrated Telephone and Web based transaction reporting through our
    IPS Select CSR View product;
--  Fast Merchant Setup Time -- As Fast as 24 Hours;
--  Supports All Card Types;
--  Funds are available in the merchant's bank within 48 hours.
    

"Our 410 beta test customers have given this proprietary technology rave reviews," said Louis Hoch, President and COO of Payment Data Systems, Inc. "These customers have generated thousands of transactions and report they are impressed with the efficiency and completeness of the system. Mobile commerce is increasingly important to merchants, and IVR is designed to be a major driver of this sector."

The success of the test deployment has resulted in an increase in Payment Data's customer base to more than 550.

To learn more about the system or have an online demonstration, please visit: http://www.paymentdata.com/v2/ipspaybyphone.htm

About Payment Data Systems, Inc.

Payment Data Systems, Inc. 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 Systems, Inc. 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'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.

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.

Contact Information

  • Contact:
    Michael Long
    Investor Relations
    210.249.4040
    Email Contact