Heartland Payment Systems
|Traded as||NYSE: HPY|
|Industry||Electronic Payment Processing|
|Founders||Robert O. Carr |
|Area served||United States|
|Key people||Robert O. Carr|
|Revenue||$2.1 Billion (2013) |
Heartland Payment Systems, Inc. is a Fortune 1000 company that provides debit, prepaid, and credit card processing, mobile commerce, e-commerce, check processing, payroll services, billing services, marketing services, security technology, lending services and a growing line of industry-specific business facilitation solutions for small to mid-sized merchants and enterprises. Founded by Robert O. Carr in 1997, Heartland Payment Systems is headquartered in Princeton, New Jersey. There are also offices nationally in Texas, Colorado, Tennessee, Oklahoma, Oregon, Illinois, Indiana, New York, Arizona, Kentucky, Pennsylvania and Ohio.
Heartland Payment Systems processes transactions for more than 250,000 business locations in the United States. and processes more than 11 million transactions a day and more than $80 billion in transactions a year. Heartland focuses its efforts on small to mid-sized businesses.
On January 20, 2009 Heartland announced that it had been "the victim of a security breach within its processing system in 2008". The data stolen included the digital information encoded onto the magnetic stripe built into the backs of credit and debit cards; with that data, thieves can fashion counterfeit credit cards by imprinting the same stolen information onto fabricated cards. One estimate claimed 100 million cards and more than 650 financial services companies were compromised; at the time, it was characterized as the largest ever criminal breach of card data.
On May 1, 2009, Visa and Heartland issued a statement that Heartland successfully validated its compliance with PCI DSS and was returned to Visa's list of PCI DSS Validated Service Providers.
Several days later, on May 8, 2009, Gartner Analyst Avivah Litan stated that Heartland "is basically leading the way for the rest of the industry." She also characterized its plan for end-to-end encryption as the first effort of its kind in the US.
Open letter to the Electronic Payments Industry
Following a keynote address to the Strategic Leadership Forum of the Electronic Transactions Association in October of 2013, Heartland CEO Bob Carr published an open letter to the electronic payments industry urging an end to unethical, dishonest and illegal pricing practices, referencing the practice of deliberately falsifying interchange rates, deliberately falsifying MCC codes, and the use of confusing small print to extort large fines from merchants.
Litigation against Mercury Payment Systems
In January 2014, Heartland sued the company Mercury Payment Systems, an electronic payment provider, for alleged false advertising and "other deceptive trade practices". The lawsuit concerns interchange fees charged by credit card networks and alleges violations of the Lanham Act and state laws.
- Brian Krebs (January 20, 2009). "Payment Processor Breach May Be Largest Ever". Washington Post.
- "Heartland Payment Systems Uncovers Malicious Software In Its Processing System". January 20, 2008. Retrieved 2009-01-21.
- King, Rachael (6 July 2009). "Lessons from the Data Breach at Heartland". Retrieved 8 June 2014.
- Heartland Payment Systems Returns to Visa's List of PCI DSS Validated Service Providers
- Security breach has cost Heartland £8.4m so far, Computerworld UK
- Open Letter to the Electronic Payments Industry
- Heartland Payment Systems. "Heartland Payment Systems Files Federal Lawsuit Against Mercury Payment Systems, LLC". Yahoo! Finance. Retrieved 11 February 2014.
- Villarreal, Alexandra. "Heartland files suit against Mercury Payment Systems over alleged illegal practices". Bank Credit News. 1/31/14. Retrieved 2/5/14.