SOURCE: Payment Data Systems, Inc.

July 10, 2006 06:00 ET

Payment Data Systems Records Record Month in Both Transaction and Dollar Volume; Company Expects Q3 Volume Increases to Triple Last Year's Levels

SAN ANTONIO, TX -- (MARKET WIRE) -- July 10, 2006 -- Payment Data Systems, Inc. (OTCBB: PYDS), an integrated electronic payments solutions provider, today announced that both its credit card transaction and dollar volume processed in June was its highest for any month to date.

On an unaudited basis, June's transaction volume roared ahead 447%, while dollar volume leaped 156% from June 2005 levels. For the Second Quarter of 2006 as a whole, transaction volume jumped 257%, while dollar volume increased 123% from levels in the comparable period last year. Dollars processed is the metric that drives the company's revenue from credit card processing.

Today's volume numbers follows closely Payment Data Systems' announcement last month that an existing customer added new revenue of $480,000 a year and credit card transaction.

"We are extremely pleased with our significant processing increases in the second quarter, as we continue to see increasing results from our sales efforts," said Payment Data Systems Chairman and CEO Michael Long. "We expect that the momentum we have accelerated in June will continue into Q3 and should enable us to achieve a tripling of transaction volume and 150% in dollar volume in the current quarter."

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.

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 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.

Website: http://www.paymentdata.com, www.billx.com, www.carmencard.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