13D Long

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LdpKXzhhc77BZaPmGUPP3Uk2lxCzN7EvdSk/7SGaAS6+LpiZrJC7eeY0EOdqYd+W fxyUO1WVEp0u3/9mvBvk1g== 0001354488-08-000166.txt : 20080211 0001354488-08-000166.hdr.sgml : 20080211 20080211171602 ACCESSION NUMBER: 0001354488-08-000166 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20080211 DATE AS OF CHANGE: 20080211 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: PAYMENT DATA SYSTEMS INC CENTRAL INDEX KEY: 0001088034 STANDARD INDUSTRIAL CLASSIFICATION: FUNCTIONS RELATED TO DEPOSITORY BANKING, NEC [6099] IRS NUMBER: 980190072 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-58445 FILM NUMBER: 08594576 BUSINESS ADDRESS: STREET 1: 12500 SAN PEDRO STREET 2: SUITE 120 CITY: SAN ANTONIO STATE: TX ZIP: 78216 BUSINESS PHONE: 2102494100 MAIL ADDRESS: STREET 1: 12500 SAN PEDRO STREET 2: STE 120 CITY: SAN ANTONIO STATE: TX ZIP: 78216 FORMER COMPANY: FORMER CONFORMED NAME: BILLSERV INC DATE OF NAME CHANGE: 20011219 FORMER COMPANY: FORMER CONFORMED NAME: BILLSERV COM INC DATE OF NAME CHANGE: 19990607 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: LONG MICHAEL R CENTRAL INDEX KEY: 0001089352 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: BUSINESS PHONE: 2102494040 MAIL ADDRESS: STREET 1: 12500 SAN PEDRO STREET 2: SUITE 120 CITY: SAN ANTONIO STATE: TX ZIP: 78216 SC 13D/A 1 f13dlong.htm SCHEDULE 13-D/A 13D Long

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D/A

Under the Securities Exchange Act of 1934

(Amendment No. 2)¹

Payment Data Systems, Inc.

(Name of Issuer)

Common Stock, par value $0.001 per share

(Title of Class of Securities)

70438S103

(CUSIP Number)

Michael R. Long

Chief Executive Officer and Chief Financial Officer

12500 San Pedro, Suite 120

San Antonio, Texas 78216

(210) 249-4100

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

January 9, 2008

(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. o

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.

(Continued on following pages)

(Page 1 of 4 Pages)

———————

¹The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).


CUSIP No. 70438S103	13D	Page 2 of 5 Pages


1	NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) Michael R. Long
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
	(a)
	(b)

3	SEC USE ONLY
4	SOURCE OF FUNDS* SC
5	CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)


6	CITIZENSHIP OR PLACE OF ORGANIZATION United States
NUMBER OF		7	SOLE VOTING POWER 18,630,858(1)
SHARES BENEFICIALLY OWNED BY		8	SHARED VOTING POWER 0
EACH REPORTING PERSON		9	SOLE DISPOSITIVE POWER 18,630,858 (1)
WITH		10	SHARED DISPOSITIVE POWER 0
11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 18,630,858
12	CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*


13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 20.8%
14	TYPE OF REPORTING PERSON* IN

¹ Includes 781,833 shares not currently outstanding but subject to currently exercisable options.


CUSIP No. 70438S103	13D	Page 3 of 5 Pages

Item 1.

Security and Issuer.

This statement relates to shares of common stock, par value $0.001 per share, of Payment Data Systems, Inc., a Nevada corporation. The address of the principal executive office of Payment Data Systems, Inc. is 12500 San Pedro, Suite 120, San Antonio, Texas 78216.

Item 2.

Identity and Background.

(a)

Michael R. Long

(b)

12500 San Pedro, Suite 120, San Antonio, Texas 78216

(c)

Mr. Long is employed by Payment Data Systems, Inc. as its Chief Executive Officer and Chief Financial Officer. The address of the principal executive office of Payment Data Systems, Inc. is 12500 San Pedro, Suite 120, San Antonio, Texas 78216.

(d)

During the last five years, Mr. Long has not been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors).

(e)

During the last five years, Mr. Long has not been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

(f)

United States

Item 3.

Source or Amount of Funds or Other Consideration.

On January 9, 2008, Mr. Long was granted 7,750,000 shares of common stock. These shares were granted to Mr. Long as a result of his employment with Payment Data Systems, Inc.

Item 4.

Purpose of the Transaction.

In a private transaction, Mr. Long was granted 7,750,000 shares of common stock. These shares were granted to Mr. Long as a result of his employment with Payment Data Systems, Inc.

Item 5.

Interest in Securities of the Issuer.

(a)

Mr. Long is the beneficial owner of 18,630,858 shares, or 20.8% of the outstanding common stock of Payment Data Systems, Inc. as of February 11, 2008, which includes 781,833 shares issuable pursuant to stock options granted by Payment Data Systems, Inc. that are vested and fully exercisable.

(b)

Mr. Long has sole voting power and sole dispositive power with respect to the shares of common stock reported herein.

(c)

During the past sixty days, the only transactions in the common stock by Mr. Long other than as described in Item 3 above were the following:

Shares returned to Payment Data Systems, Inc. to satisfy a payment obligation pursuant to the terms of Mr. Long’s Employment Agreement dated February 27, 2007:


Date	Price	Number of Shares Returned
12/29/2007	$0.075	1,285,714


CUSIP No. 70438S103	13D	Page 4 of 5 Pages

Options canceled by Payment Data Systems, Inc. to satisfy a payment obligation pursuant to the terms of Mr. Long’s Employment Agreement dated February 27, 2007:


Date	Price	Number of Shares Canceled
12/29/2007	$0.0008	83,334
12/29/2007	$0.0219	150,000
12/29/2007	$0.0407	325,000
12/29/2007	$0.0588	15,000
12/29/2007	$0.0614	325,000

(d)

Not applicable.

(e)

Not applicable.

Item 6.

Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.

Mr. Long was granted 7,750,000 shares of common stock that vest on January 9, 2018. Mr. Long may acquire 781,833 shares of common stock issuable pursuant to stock options granted by Payment Data Systems, Inc. that are vested and fully exercisable.

Item 7.

Material to be filed as Exhibits.

Not applicable.


CUSIP No. 70438S103	13D	Page 5 of 5 Pages

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.



Date: February 11, 2008	By:	/s/ Michael R. Long
		Michael R. Long
		Chief Executive Officer and Chief Financial Officer

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