Payment Data Systems, Inc. Announces e-Check Service Partnership with Plug`n Pay Technologies

SAN ANTONIO--(Business Wire)--
Payment Data Systems, Inc. (OTCBB: PYDS), an integrated electronic payments
solutions provider, today announced that it has completed the integration with
the Plug`n Pay e-Commerce gateway and the PDS ACH platform to provide e-Check
service to its customers.

Through the integration of the PDS ACH platform to the Plug'n Pay gateway, PDS`
services are fully available through the Plug'n Pay gateway with no additional
integration involved. The e-Check transaction reporting is integrated into the
industry leading Plug'n Pay reporting so there is only one reporting interface
that the merchant accesses for both check and credit card sales information.

"Plug'n Pay is very happy to add Payment Data's ACH services to our integrated
eCheck product," said Randy Ridings, VP of Sales for Plug'n Pay. "We recognize
that ACH eCheck payments are growing in popularity and working with our long
time partner Payment Data will give our customers additional payment options."

"We are delighted to be partnering with such an innovative payment solutions
provider as Plug'n Pay," said Michael Long, Chairman and CEO of Payment Data
Systems, Inc. "PDS and Plug'n Pay share a vision to provide comprehensive,
secure and convenient payment solutions to Internet merchants through industry
leading technology," Long added. "The PDS ACH platform allows merchants to
accept electronic checks through their e-Commerce websites with the added
capability of converting paper checks into electronic transaction items. We are
looking forward to working closely with Plug'n Pay to provide these services."

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

About Plug`n Pay Technologies, Inc.

Plug'n Pay, founded in 1996, is a leading provider of payment and digital
fulfillment solutions for Internet merchants. Plug'n Pay's payment systems allow
merchants to accept and manage both credit card and electronic check payments in
a secure environment. Plug'n Pay's industry leading digital fulfillment systems
allow merchants to offer digital goods for real-time fulfillment and to manage
and maintain online membership and recurring billing services. Plug'n Pay is
integrated with the most complete selection of the payment industry's processing
centers which allows them to provide their on-line payment solutions to any and
all customers. Plug'n Pay's services can be located through its web site,
www.plugnpay.com, or through its reseller partners.

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.

Plug`n Pay Technologies, Inc.
Randy Ridings, 800-945-2538, x104
VP Sales
rridings@plugnpay.com
or
Investor Relations:
Payment Data Systems, Inc.
Michael Long, 210-249-4040
ir@paymentdata.com

Copyright Business Wire 2009