Payment Data Systems, Inc. (OTCBB:PYDS), an integrated electronic payments solutions provider, today announced that its credit card dollar volume processed in August was its highest for any month to date and surpassed July’s volume by 17%. On an unaudited basis, our dollar volume for August rose 57% from the August 2006 level. Based on September processing levels for the first ten days of the month, we project that our volume for the third quarter will also set a record for the highest volume of processing in any quarterly period.

Michael Long, CEO, commented, "We continue to see the third quarter building on the momentum generated in our record second quarter and anticipate that the overall trend of increasing credit card volume will keep us on pace for another volume record for dollars processed in a quarter and the year and record revenues for the year. We are thrilled that we have already exceeded all of last year’s credit card dollar volume with four months left in the year.“