Payment Data Systems (OTCBB:PYDS), an integrated electronic payments solutions provider announced today the availability of a "Debit Only" card payment method product.

This product is particularly oriented to organizations that do not want their customers to incur debt as a result of their payment but still want to offer the processing security and convenience of a card.

This capability is available through all our payment acceptance channels including Customer Service Representatives, IVR, our program interface technology (API), our gateway services, and our soon to be released iPhone® application iRemotePay?.

Michael Long, PDS CEO, said, "Many churches believe that creating debt in order to tithe or contribute to the church for other needs such as building programs go against the teachings of their faith. Heretofore, the congregation members could only make these contributions by check or cash. Now with this payment product, the church member can use their bank card association's branded check card as a method of payment or use our ACH payment processing rather than the inconvenience and insecurity of cash."

Long continued, "Any of our current churches that are enrolled today as ACH only will be candidates for this offering as are any other churches that have completely avoided on-line giving as they previously had no real solution until now."

Each customer or church expressing interest in the product needs to get permission from the card associations to offer the specialized debit only payment method.

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, 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.ficentive.com, www.zbill.com

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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.

Payment Data Systems, Inc.
Michael Long, 210-249-4040
ir@paymentdata.com
www.paymentdata.com