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

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or withdrawn without any ATM charges.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.

FORWARD-LOOKING STATEMENTS DISCLAIMER

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.

SOURCE: FiCentive, Inc.

FiCentive, Inc., San Antonio
Michael Long, 210-249-4040
ir@paymentdata.com
www.paymentdata.com

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