Payment Data Systems, Inc. Signs Seven New Billers Representing Over $7,000,000 in Annualized Transaction Value - Payment Data Systems Establishes New Processing Agreement to Significantly Increase Revenue Opportunities - SAN ANTONIO, Jan. 20 /PRNewswire-FirstCall/ -- Payment Data Systems, Inc. (OTC:PYDS) (BULLETIN BOARD: PYDS) an Integrated Payments Solution Provider, announced today that it has signed a multi-year agreement with Central Bancard, LLC to provide credit card authorization and settlement. With this new capability, PDS will be in a position to create and capture significant new revenue opportunities from an extremely diverse cross section of billers that have wanted to do business with PDS, but until now have had to seek out other providers. Louis Hoch, President and COO of Payment Data Systems stated, "We continue to enjoy an excellent relationship with our current processor and appreciate their attention to detail and strong customer service orientation. However, our business policy is to ensure that we provide alternative solutions where our prospective customers' circumstances dictate an alternative is the best solution. Central Bancard management brings to PDS years of experience in serving customers in the same quality way and the sensitivity to customers as that of our current processor. Since signing the agreement, we have boarded seven customers representing more than seven million dollars in annualized transactional value that otherwise would not be processing through us." Henry Harp, Executive Vice President and one of the owners of Central Bancard, said, "We are very pleased that Payment Data Systems has selected Central Bancard as a strategic partner for their business needs. We look forward to working with the PDS team to bring creative solutions to prospective merchant clients." About Payment Data Systems, Inc. Payment Data Systems, Inc., is an Integrated Payments Solution Provider delivering comprehensive, cost-effective solutions to billers and retailers for the processing and management of electronic payments via the Internet, point of sale, or payments taken by Customer Service Representatives or an Interactive Voice Response (IVR). Additional products available from PDS include services and products that can be implemented more quickly and less expensively than the alternative of adding multiple payments companies as these solutions offer a full range of payment processing capabilities. These service offerings include: one time and recurring ACH debits and credits, electronic lockbox and returned check services, Web pay acceptance of credit cards and checks, telephone pay to Customer Service Representatives for acceptance of credit cards and checks, Interactive Voice Response systems which completely automate the payment receiving process, and data warehousing that enable the storage and retrieval of all payment history from one location. Payment Data is the owner of the electronic bill payment portal, http://www.bills.com/ . Bills.com has the ability to transmit electronic payments to thousands of national billers. For additional information, visit http://www.paymentdata.com/ . Contact: Michael Long, Investor Relations, Payment Data Systems, Inc. 210-249-4040. About Central Bancard Central Bancard and their affiliate company TriSource Solutions LLC, are owned and operated by William Brockway and Henry Harp. Their focus is on developing comprehensive programs to meet the needs of the agent and ISO communities. Central Bancard is a full service payment solutions provider, offering Credit, Debit, EBT, Check Conversion and Guarantee, Gift Cards and Internet Processing to merchants and agent offices. TriSource Solutions can offer larger ISO offices, a full turn-key solution including bin sponsorship, authorization processing through Vital Processing Services and backend clearing and settlement through an in-house processing platform. For more information contact Mr. Henry Harp, Executive Vice President, Central Bancard, LLC, 706-562-1974 or visit their website at http://www.centralbancard.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. DATASOURCE: Payment Data Systems, Inc. CONTACT: Michael Long, Investor Relations of Payment Data Systems, Inc. +1-210-249-4040 Web site: http://www.paymentdata.com/ http://www.bills.com/ http://www.centralbancard.com/

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