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

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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.

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