SOURCE: Payment Data Systems, Inc.

June 21, 2006 07:00 ET

Existing Customer Adds New Revenue of $480,000 a Year and Credit Card Transaction Volume for May Grows 166% From Prior Year

SAN ANTONIO, TX -- (MARKET WIRE) -- June 21, 2006 -- Payment Data Systems, Inc. (OTCBB: PYDS), an integrated electronic payments solutions provider, today announced that the credit card dollar volume processed in May was our highest for any month to date. Dollars processed is the metric that drives our revenue from credit card processing. On an unaudited basis, May's volume was 114% higher than dollars processed in May 2005 and the associated transactions were 166% higher than transactions processed for the same period.

Last week, a current customer began transmissions of additional transaction volume that is projected to result in additional revenue of over $480,000 a year. Louis Hoch, President and COO of Payment Data Systems, said, "We are thrilled that our client has built enough confidence in our company to send us all of their traffic."

Michael Long, Chairman and CEO of Payment Data Systems, Inc, said, "We are pleased to see the momentum generated in the first quarter extend into the second quarter and provide us a stronger base from which to expand our service offerings to include the much anticipated launch of our celebrity and other debit card programs in the coming weeks."

About Payment Data Systems, Inc.

Payment Data Systems is an integrated payment solutions provider to merchants and billers. We provide an extensive set of tailored products to deliver world-class payment acceptance, processing, and risk/fraud management. Payment Data has solutions for merchants, billers, banks, service bureaus and card issuers. Whether you are in the market for card issuance, payment acceptance or bill payment solutions we have a solution for you.

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's intellectual property includes U.S. Patent Number 7,021,530 that relates to bill payments made with debit, prepaid and stored value cards.

For additional information, visit www.paymentdata.com, www.bills.com or www.carmencard.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