SOURCE: Payment Data Systems, Inc.

Payment Data Systems, Inc.

February 17, 2011 08:30 ET

Payment Data Systems' December Processing Volume Achieves Record High for the Year 2010

Credit Card Dollars Up 31% Quarter-to-Quarter

SAN ANTONIO, TX--(Marketwire - February 17, 2011) - Payment Data Systems, Inc. (OTCBB: PYDS), an integrated electronic payments solutions provider, today announced that on an unaudited basis, its credit card processing volumes for the fourth quarter ended December 31, 2010 were the highest of any other quarter in 2010. In addition, credit card processing volumes for the month of December surpassed that of any other month in 2010.

Credit card dollars processed in the fourth quarter were up 31% over the third quarter of 2010. Credit card dollars processed in December increased 22% over November 2010. Processing dollars are an important metric because it directly relates to gross revenue. As volume for processing dollars rises, the gross revenue for the Company's payment processing rises as well. 

"We are excited to realize this growth during a time that the U.S. economy is experiencing great challenges in terms of an ongoing recession and high unemployment. We believe our record performance is attributable, in large part, to the makeup of our client base, which is predominately large recurring billers like insurance companies. Our revenue model is less dependent on retail merchants in terms of volume, which provides us with significant downside protection against consumer purchasing trends. We also are generating repeat business from sales to our value-added resellers," said Michael Long, Chairman and CEO of Payment Data Systems.

Mr. Long concluded, "As we move forward in 2011 and beyond, we remain very enthusiastic about our ability to grow across all segments of our businesses, including payment processing, prepaid card processing, and bill payment processing."

About Payment Data Systems, Inc.

Payment Data Systems 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.

For additional information, contact Michael Long for Investor Relations information at 210-249-4040 or email at ir@paymentdata.com.

Websites: http://www.paymentdata.com, www.ficentive.com, www.zbill.com
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