Payment Data Systems, Inc. (OTCBB:PYDS), an integrated electronic payments solutions provider, today announced the company’s transaction processing volumes for the last two months and fourth quarter of 2007 on an unaudited basis.

November volumes increased significantly, with dollars processed gaining 52% and transaction volume growing 49% over November 2006. Our December credit card processing experienced similar gains, as our dollar volume increased 64% from the comparable month one year ago and transaction volume in December grew 47% year over year.

Volumes for the fourth quarter of 2007 were mixed in that our transaction volumes decreased by 11% from those of the prior year quarter; however, our dollars processed (the metric that drives revenue) was up 45%. The most significant reason for the decline in transaction volumes as well as an effect on dollars is that one of our larger customers needed to adjust some administrative processes within their systems.