Heartland Payment Systems

Heartland Payment Systems
Name	Heartland Payment Systems
Type	Private
Industry	Financial services
Founded	1997
Fate	Acquired by Global Payments (2016)
Headquarters	Jasper, Georgia
Key people	Robert Carr, Phil Tomlinson
Products	Payment processing, point-of-sale services, payroll services
Num employees	1,800 (2016)

Heartland Payment Systems was an American payment processing company that provided electronic payment processing, payroll, and point-of-sale services to merchants and institutions across the United States. Founded in 1997 and headquartered in Jasper, Georgia, the company grew through acquisitions and organic expansion before being acquired by Global Payments in 2016. It became notable for both its merchant services footprint and a major data breach that influenced Payment Card Industry Data Security Standard compliance discussions and regulatory scrutiny.

History

Heartland was founded in 1997 in Jasper, Georgia by entrepreneurs in the financial services and information technology sectors, expanding rapidly in the 2000s through acquisitions of regional processors and point-of-sale vendors. The company completed an initial public offering on the New York Stock Exchange in 2006, listing under the ticker symbol HRT, and later transitioned through strategic moves involving private equity firms before its 2016 acquisition by Global Payments. During its expansion, Heartland participated in industry events such as Money2020 and engaged with standards organizations including the Payment Card Industry Data Security Standard council and the Electronic Transactions Association.

Services and Products

Heartland offered merchant services encompassing card acceptance for Visa, Mastercard, American Express, and Discover Financial Services networks, as well as transaction routing through processors such as First Data Corporation and TSYS. Its point-of-sale solutions served verticals like restaurant operators, retail merchants, and healthcare providers, integrating with hardware vendors such as Verifone and Ingenico. Additional offerings included payroll and human resources services linked to providers like ADP and Paychex, gift and loyalty programs interoperable with platforms such as Fiserv, and reporting tools compatible with QuickBooks and Oracle NetSuite.

Data Breach and Security Incidents

In 2009–2010 Heartland disclosed a major data breach involving card-present and card-not-present transactions that affected millions of payment card numbers and prompted investigations by state attorneys general including New York Attorney General and federal agencies such as the Federal Bureau of Investigation. The breach led to heightened involvement from the Payment Card Industry Security Standards Council and triggered industry responses from merchants, acquirers, and processors including Bank of America and Wells Fargo. Following the incident, Heartland worked with forensic firms like Verizon Business and security vendors including Symantec and McAfee to remediate vulnerabilities, adopt end-to-end encryption, and pursue compliance with Payment Card Industry Data Security Standard requirements.

Corporate Structure and Ownership

Prior to acquisition, Heartland operated as a public company with a board of directors that included executives and independent directors drawn from financial services and technology sectors. Significant ownership changes involved private equity interest from firms such as GTCR and strategic transactions with acquirers including Global Payments, which completed a cash-and-stock deal in 2016. The company maintained regional offices and merchant services teams across states including Florida, Texas, California, and New York, while reporting to regulators including the Securities and Exchange Commission before the acquisition.

Legal Issues and Regulatory Actions

Heartland faced multiple legal and regulatory challenges following its security incidents, including class action litigation by merchants and consumers represented by law firms active in data breach cases and settlements overseen in part by state attorneys general such as Eric Schneiderman of New York and Kamala Harris of California (at the time serving as Attorney General). Regulatory scrutiny involved agencies such as the Federal Trade Commission and the Office of the Comptroller of the Currency where applicable to acquiring banks, and led to settlements addressing compensation, forensic audits, and improved Payment Card Industry Data Security Standard compliance. The company also engaged with the U.S. Department of Justice in matters tied to criminal investigation of intrusions and coordinated with card networks Visa and Mastercard on remediation and chargeback policies.

Market Position and Competitors

Before its acquisition, Heartland ranked among the larger independent merchant acquirers and payment processors competing with firms such as First Data Corporation, Fiserv, Global Payments (pre-acquisition peers), TSYS, Square, Inc., PayPal, and regional acquirers including Elavon and Chase Merchant Services. Its market position was shaped by product integration with point-of-sale vendors like NCR Corporation and Toast (company), consolidation trends driven by private equity firms such as Silver Lake and Thoma Bravo, and evolving competition from fintech entrants showcased at events such as Finovate and Money20/20.

Category:Payment service providers Category:Companies established in 1997 Category:Companies based in Georgia (U.S. state)