Profile: Payment Data Systems Inc (PYDS.OQ)
20 Mar 2019
Payment Data Systems, Inc., incorporated on June 4, 1998, is engaged in the business of processing electronic payments for other companies including a range of automated clearing house (ACH) processing, credit, prepaid card and debit card-based processing. The Company is an integrated payment solutions provider offering a range of services to merchants, billers, banks, service bureaus, and card issuers. The Company operates through two operating entities: Payment Data Systems, Inc. and FiCentive, Inc. Payment Data Systems, Inc. provides integrated electronic payment processing services to merchants and businesses, including credit and debit card-based processing services and transaction processing through the ACH network. The Company's ACH processing services enable merchants or businesses to both disburse and collect funds electronically using e-checks to transfer funds instead of traditional paper checks. An e-check is an electronic debit to a bank checking account that is initiated at the point-of-sale, on the Internet, over the telephone, or through a bill payment sent through the mail, and e-checks are processed using the ACH network.
The Company's card-based processing services enable merchants to process both traditional card-present (swipe) transactions, as well as card-not-present transactions. The Company's electronic payment processing may take place in a range of forms and situations. The Company's capabilities allow merchants to convert a paper check to an e-check or receive card authorization at the point-of-sale. It also allows its merchants' respective customer service representatives to take e-check or card payments from their consumers by telephone, and enable their consumers to make e-check or card payments directly through the use of a Website or by calling a voice response telephone system. In addition, it operates an online payment processing service, under the domain name www.billx.com system, which allows consumers to process online payments to pay any other individual, including family and friends.
The Company provides prepaid card processing services for merchants and consumers through its subsidiary, FiCentive, Inc. The Company offers MasterCard prepaid cards branded with its customers' corporation logos or trademarks. The Company creates, manages and processes prepaid card programs for corporate clients. These prepaid cards can be used for various applications, including payroll, corporate incentives, employee incentives and general use. The Company offers prepaid cards directly to consumers for use as a tool to stay on budget, manage allowances and share money with family and friends, and businesses use the Akimbo platform to deliver a range of payments from rewards and incentives to regular payroll. The Company offers the Akimbo MasterCard program.
The Company has designed and implemented its integrated payment systems to function as gateways between its customers and its third party processing providers. The Company's systems provide for interfaces with its customers, through which payment data is captured electronically and transferred through the connections it has with its processing providers. The Company's systems also provide a data warehousing capability. It outsources its ACH transaction processing and card-based transaction processing to third party providers.
The components of the Company's service offerings include all forms of ACH transaction processing, such as Represented Check, which is a consumer non-sufficient funds check that is presented for payment electronically rather than through the paper check collection system, and Accounts Receivable Check Conversion, which is a consumer paper check payment that is converted into an e-check. The Company's customers can initiate ACH transactions directly using an online terminal accessible through a Website or the Company can initiate ACH transactions on their behalf. Its service offering also includes merchant account services for the processing of card-based transactions through the VISA, MasterCard, American Express, Discover, and JCB networks, including online terminal services accessed through a Website or retail services accessed through a physical terminal. The Company offers a Web-based customer service application that combines both ACH and card processing capabilities that allow companies to process one-time and recurring payments through e-checks or credit cards at the request of their consumers. In addition, it offers a Voice Response telephone system to companies that accept payments directly from consumers over the telephone using e-checks or credit cards.
The Company offers e-check verification technology, which helps merchants prevent returns before processing and reduces return check transactions. The service utilizes the Company's returns database that contains records for any transaction that the Company has previously attempted to process and the transaction was unsuccessful for account closed, invalid account, non-sufficient funds, payment stopped, frozen account, unauthorized account and others. Merchants are allowed to query the database in advance of submitting a transaction for processing and settlement. Merchants utilize the data to make their own determination if they wish to process a payment or not.
The consumers subscribe to the payment service at www.billx.com and are allowed to make a certain number of payments each month. The Company sells the payment portal service as a private label solution to online financial services providers looking to provide online bill payment capabilities as part of their service offering to consumers. The Company also offers the service to other debit card issuers, as the Company is able to utilize the bill payment component of the service for payments made through debit cards.
The Company competes with First Data Merchant Services Corporation, Elavon Inc. and Vantiv, Inc.
Payment Data Systems Inc
12500 San Pedro Ave Ste 120
SAN ANTONIO TX 78216-2890