Payment Data Systems, Inc. Signs Exclusive Agreement to Provide MasterCard® Prepaid Cards to Encompass Communications, Inc

Business Wire, Nov 17, 2008

SAN ANTONIO -- FiCentive, Inc. (OTCBB:PYDS) a turn-key prepaid card solutions provider, announced today that it has signed a multi-year agreement with Encompass Communications, Inc. to deliver instant issue Encompass Prepaid MasterCard([R]) cards to more than 1,000 retail outlets.

The card program will provide consumers with a reloadable MasterCard card that is issued instantly and is able to be used by the cardholder as soon as they leave the store. The card program will allow for the cardholder to use the card to facilitate direct deposit and bill payment.

It is anticipated the cards will be available for distribution in 1,000 retail stores by the end of the fourth quarter of this year.

Encompass Communications is also a leader in the retail distribution of prepaid calling cards, brand recognized wireless top-up PINs and gift cards by placing card kiosks in these retail outlets. The cards that are represented by the kiosks include Radio Shack, Sears, iTunes, Blockbuster, Home Depot, and many more well known brands.

Larry Luna, CEO of Encompass Communications said, "We are very impressed with the capabilities for FiCentive to deliver the custom card program our customers are demanding. We selected FiCentive because of their number of successful card implementations and their menu of services."

Louis Hoch, FiCentive's President and CEO said, "We are very pleased to be able to partner with such an innovator in the prepaid and gift card retail market place. We are excited about the distribution network that Encompass has created and believe their card program will be well received in the marketplace."

About FiCentive, Inc.

FiCentive, Inc. is a turn-key prepaid card solutions provider that quickly and securely delivers customized prepaid card programs for corporations, financial institutions, affinity groups or any organization that needs to deliver a financial incentive to their customers, vendors, or employees. With the global prepaid market to be more than 6.5 trillion dollars, FiCentive is well positioned to capture its share.

For more information about FiCentive, please visit www.ficentive.com or email info@ficentive.com.

FiCentive is a wholly owned subsidiary of Payment Data Systems, Inc.

For additional information, visit www.paymentdata.com. Contact Michael Long for Investor Relations information at 210-249-4040 or email at ir@paymentdata.com.

About Encompass Communications

Encompass Communications is a well-established supplier of prepaid long distance and a multitude of other prepaid services. Encompass supplies their long distance service primarily with the distribution of phone card, conferencing products, and Verifon terminal programs. But Encompass offers much more than that. Encompass helps develop and build opportunities for those who want to be in the prepaid business. This unique ability allows Encompass to stand out in the prepaid industry, as they offer what most prepaid providers are not capable of.

For additional information, visit www.encompasscommunications.com.

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This document contains forward-looking statements that involve risks and uncertainties. You should not place undue reliance on these forward-looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons, including the risks described in our annual report on Form 10-K and other reports we file with the Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made. We do not intend to update any of the forward-looking statements after the date of this report to conform these statements to actual results or to changes in our expectations, except as required by law.

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