Payment Data Delivers the Industry's First Microsoft(R) .NET-Connected Web Service for Acceptance of ACH/eCheck Payments - Provides Real-Time Acceptance and Verification of Payments - SAN ANTONIO, April 14 /PRNewswire-FirstCall/ -- Payment Data Systems, Inc. (OTC:PYDS) (BULLETIN BOARD: PYDS) an integrated electronic payments solutions provider, announced today that it has successfully delivered its IPS ACH Gateway(TM) with the Microsoft(R) .NET Framework for developers to implement the processing of ACH/eCheck payments. The Microsoft(R) .NET web service for ACH, IPS ACH Gateway(TM), provides real-time feedback on eCheck acceptance and verification and is integrated with all of Payment Data's verification, fraud, risk and customer service offerings. Payment Data and our customers understand the inherent risk associated with traditional methods for accepting checks electronically. The previous version of our IPS ACH Gateway(TM) gave our customers the tools to mitigate fraud and limit risk. Our enhanced Microsoft(R) .NET web service Verification and Risk tool is designed to perform extend fraud and risk management by conducting commercially reasonable check validations and buyer authentications. We are able to verify the validity of a bank routing number and consumer's bank account status. Additional features include: * Allows lookup of bank name by routing number * Quickly identifies data entry errors of routing number * Identifies inactive or retired routing numbers due to bank merger or acquisition * Identifies credit unions and financial institutions whose rules do not allow debit or credit ACH transactions to post to savings or checking accounts * Recognizes items drawn on closed accounts * Recognizes items drawn on accounts currently in overdraft status * Recognizes consumer accounts that are in industry negative databases The benefits that a PDS customer can expect to realize are: * Reduces "administrative" returns, allowing you to identify bad routing numbers and enables you to make the correction at the point of acceptance instead of after the sale * Reduces cost associated with administrative return items * Reduces "Account Closed" and "NSF" returns * Allows your company to recognize potentially fraudulent transactions * Reduces cost associated with return items and collections "We are already experiencing some early successes with IPS ACH Gateway(TM) some from existing clients and some from prospects that are evaluating our services. One prospect includes a major bankcard program that found us through our successes in the debit card space. I believe this new offering will provide us a competitive advantage for a period of time and I am excited about our company's capabilities to deliver such a leading edge service," said Louis Hoch, President & COO. 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. 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/

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