FiCentive, Inc. Concerned by Bank Fees Being Charged to the Unemployed

Business Wire, Feb 20, 2009

SAN ANTONIO -- FiCentive, Inc. (OTCBB: PYDS) is a wholly-owned subsidiary of Payment Data Systems, Inc.

Over the past several days the news has been very active outlining a variety of fees that are being charged by banks that are charging recipients of unemployment benefits delivered to a bank debit card. The fees range from around $3.00 to $20.00.

It is reported that some 30 states distribute these unemployment benefits in outsourcing relationships with banks that then distribute the benefits to a bank debit card. Another eleven states are currently reviewing the possibility of doing the same thing.

The unemployed recipient then decides he/she wants to take money off their card, goes to an ATM, and then is presented with a fee to withdraw their funds. Service charges can also be incurred if the recipient makes a call to a customer service representative.

The banks are providing this service to the states typically without any set up or processing charges. Therefore the state saves money by no longer producing and mailing checks to the recipient. Hence the states are saving considerable money and the banks are generating considerable fees - all at the expense of an unemployed individual.

FiCentive's technology does not require fees to be assessed on ATM withdrawals or for inbound customer service calls.

Louis Hoch, FiCentive's President and CEO said, "We recently discussed our technology with a large department within the State of Texas that had a requirement to load a benefit to a stored value card. A requirement stated that the full amount of funds needed to be accessed or withdrawn without any ATM charges. Several banks responded to the request but their technology did not allow them to meet this requirement. Because we had anticipated such a requirement, we built that capability into our platforms from the outset."

Michael Long, CEO of Payment Data Systems, said "We believe these types of fees reflect negatively upon the stored value card industry and are simply unnecessary at best and highly inappropriate at the worst. Any card program but in particular a benefits card program should be tailored to meet the needs of the constituent customer community. We consider that charging fees to those that are already challenged economically to be without any understanding or consideration of the community being served. We do understand that some fees may be necessary, but these fees should also be understandable by the cardholder."

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.

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