Heartland Payment Systems Review & Alternatives
Meaghan has provided content and guidance for indie retailers as the editor for a number of retail publications and a speaker at trade shows. She is Fit Small Business’s authority on retail and ecommerce.
Anna’s experience in business and finance led her to work for a US risk mitigation company in Singapore. She has contributed to POS and payments topics in the Retail section across Fit Small Business.
This article is part of a larger series on Payments.
Heartland Payment Systems, founded in 1997, is a merchant services provider and direct processor powered by Wells Fargo Bank. It experienced a massive customer data breach in 2008 and was acquired by Global Payments in 2016, with much-improved data security measures in place. The provider features flexible payment processing, automated invoicing and recurring payments, mobile and ecommerce payments, virtual terminal solutions, business management tools, and more.
While it is essentially Global Payments’ arm for providing small business payments solutions, we do not recommend this processor to our readers. Like some other Heartland credit card processing reviews, we cite zero price transparency, long-term contracts, and hefty early termination fees as major concerns. Other users also report being charged for unauthorized and hidden fees, which are risky for small businesses operating on a budget.
Heartland Payment Systems
What We Like
- Interchange-plus pricing and next-day funding
- Wide range of integrations
- Waives first three chargeback fees
What's Missing
- Long-term contracts
- Undisclosed pricing
- Expensive cancelation and early termination fees
Deciding Factors
- Payment services offered: Credit card, digital wallets, ACH, and EBT payments
- Transaction Fees: Undisclosed/interchange plus pricing
- ACH Returns: $25
- Voice Authorization: 65 cents/transaction
- Contract Length: 3 years, with 1 year auto-renewal
- Early Termination Fee: $295
- Equipment Agreement Cancelation Fee: $100 (for leased equipment)
- Chargeback Fee: Undisclosed
Why We Don’t Recommend Heartland Payment Systems for Small Businesses
Three of the top red flags that we watch out for on behalf of our small business readers are lack of pricing transparency, long-term contracts, and early termination fees. Unfortunately, Heartland Payment Systems has all those.
Controlling cash flow is an important factor for small businesses, which would not be helped by unpredictable payment processing expenses. And while the provider offers some of the best software integration and add-ons, users will find similar—if not better—features in a simpler and more cost-effective solution in one of our recommended merchant service providers.
Heartland Payment Systems Payments Alternatives & Fees Comparison
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Best for | Brick-and-mortar retailers and small businesses, especially those with low sales | High-volume sales ($20,000+ monthly) | Businesses processing $10,000+ monthly | Cheapest credit card processing |
Monthly fee | $0 | $99–$199 | $79–$199 | $0 |
Card present | 2.6% + 10 cents | Interchange + 8 cents | Interchange + 8 cents | Interchange + 0.1%–0.3%, 5–8 cents |
Card not present | 3.5% + 15 cents | Interchange + 15 cents | Interchange + 15 cents | Interchange + 0.2–0.5%, 10–25 cents |
Ecommerce transaction fee | 2.9% + 30 cents | Interchange + 15 cents | Interchange + 15 cents | Interchange + 0.2–0.5%, 10–25 cents |
In the News:
In 2021, three restaurants filed a class action against Heartland Payment Systems for allegedly imposing hidden and excessive fees during the COVID-19 pandemic. According to the complainants, Heartland charged them PCI, reporting, regulatory, customer intelligence suite, non-EMV assessment, and non-EMV program fees that were unauthorized or undisclosed in their respective merchant processing agreements.
Heartland Payment Systems Pricing
Except for stating that it offers an interchange plus pricing model for its merchant processing fees, there are no other pricing details on Heartland’s website. A quick scan of its most recent merchant processing agreement, however, suggests the following incidental fees:
- ACH Returns: $25
- Voice Authorization: 65 cents/transaction
- Early Termination Fee: $295
- Equipment Agreement Cancelation Fee: $100 (for leased equipment)
- Fee for Declined Transactions for Ancillary Products: $25
Fees such as chargeback and PCI compliance are not mentioned in the agreement. Ancillary products and services like back office management tools are also offered and specified on a month-to-month subscription basis, which carries an undisclosed monthly fee and a $45 fine for late payments.
Heartland Payment Systems Hardware
Heartland Payment Systems offers a set of payment processing hardware in conjunction with its point-of-sale (POS) products. You can choose to purchase these outright, but Heartland has options to purchase in installments or lease (although we don’t recommend this). Note that it imposes a $100 cancelation fee for leased hardware in the event of an early termination of your contract.
Payment processing hardware for Heartland Payment Systems Payments are as follows:
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(Contact Heartland Payment Systems for pricing) | (Contact Heartland Payment Systems for pricing) | (Contact Heartland Payment Systems for pricing) |
Best for small and on-the-go businesses | Standalone POS terminal best for in-store mobility | Best for restaurants |
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Heartland Payment Systems Features
Setup & Application
Those who apply for its POS system are automatically considered for a Heartland Payment Systems merchant account. But if you only need a mobile payment processing solution, you can start your application by going to Heartland’s website and filling out the sign up form; a representative will contact you within the next 24 hours.
Expect to be asked for the following information as part of the application process:
- Evidence of a business bank account
- Employee Identification Number
- Proof of business
- Proof of overall business financial health
- PCI compliance
- Refund/return and exchange policies
Approval will depend on your business model, and you may be requested to send additional paperwork if the provider feels it needs further information.
Small business owners can request a demo from Heartland’s sales representative to understand its payment processing tools and features.
(Source: Heartland Payment Systems)
Contract & Terms of Service (TOS)
One of the most common (and serious) complaints about Heartland Payment Systems is the unexpected fees. For instance, one user said that for two years, they had been charged $125 for PCI fees that were not included in the merchant agreement. To make sure that you avoid this, it’s important to closely inspect both Heartland’s TOS and merchant application form. This is especially true for providers like this that are not so transparent about their rates and fees on the website.
Aside from a three-year contract, other important things to note on a Heartland Payment Systems contract are:
- It can suspend or terminate your merchant account if you fail to meet PCI security standards
- The security guidelines itemized in section 4 must be reviewed in order to ensure that these are all implemented and to avoid incurring fees or have your merchant account put on hold.
- The merchant is required to securely keep records of transactions for two years from the date of the sale or credit.
- The first three chargebacks on the start and anniversary of your contract date are free. Afterward, a chargeback fee (of an unspecified amount) will be added to the transaction amount and processing fee for merchants who lose a chargeback dispute.
- It has the right to amend its fee structure and is required to inform the merchant at least 15 days prior to the effective date of the new payment processing rates
Card Payment Processing
Heartland Payment Systems allows merchants to accept EMV chip cards, ACH, digital wallet and gift card payments. You can accept payments over the phone or with configured standalone terminals, a POS, a mobile device, and a browser. The provider offers an interchange plus pricing method for all its merchants, which is a good option for large-volume businesses. Smaller businesses with low-volume monthly transactions are better served with a flat-rate pricing method that’s simple and easy to understand.
Invoicing & Billing
This allows Heartland merchants to send invoices online and provide its customers with the means to make payments directly from the invoice. Heartland provides tools for designing templates, creating customized invoices, and tracking invoice status on a simple-to-use platform. This functionality also integrates with popular accounting platforms such as QuickBooks, FreshBooks, and Xero.
Online Payments
Heartland has tools to design customized checkout pages that streamline the payment process and are easy to navigate. The software is also equipped to create mobile-friendly checkouts and seamlessly integrates with popular ecommerce platforms such as Magento, WooCommerce, Drupal Commerce, and WordPress. The provider even offers a Software Development Kit (SDK) and access to over 500 integrations for developers and an instant sandbox testing environment for creating even more customized shopping carts.
Mobile Payment Processing
Small businesses can sign up for mobile payment processing with Heartland Payment Systems and use a mobile card reader to start accepting EMV credit or debit cards, Apple Pay, Google Pay, and Samsung Pay payments. The Mobile Pay software allows merchants to register up to three users to start taking card payments and automatically calculating taxes. It also gives you access to real-time sales reports on your mobile device.
ACH
Encourage customers to sign up for automatic payments by offering ACH payment options. It is a convenient, low-cost alternative to credit card payments, ideal for recurring billing and subscription-based businesses. Heartland’s ACH payment method also streamlines and automates your accounting process.
Security
All of Heartland Payment Systems’ processing solutions are protected by its state-of-the-art security features. Heartland Secure is considered one of the most secure card processing solutions in the industry, and comes with a comprehensive warranty. It uses EMV, end-to-end encryption, and tokenization tools to protect your customer’s card data whenever the card is being used.
Financial Services
Heartland offers capital lending in partnership with Lendio. Funding can be anywhere from $5,000 to $5 million or you can claim a $250,000 line of credit, which you can apply for in a matter of minutes and get funding in days. Once you sign an application form, Lendio will email you loan options offered by its marketplace of lenders. Expect to be asked for business information similar to your merchant account application, such as the age of your business and average monthly sales.
Heartland Payment Systems Ease of Use
Instant Deposits
Heartland Payment Systems can provide instant deposits for single and recurring transactions. You can transfer up to $10,000 per batch processing and set customized deposit schedules, 365 days a year, including weekends and holidays.
Integrations
Heartland reports pre-built plugins for over 550 technology platforms, the majority of which are for shopping cart integrations. It also supports integration for popular POS systems, payroll, and customer management.
Customer Support
A dedicated 24/7 phone line is provided for answering customer complaints. Heartland also includes an online portal that contains documentation for all of its products, plus a platform for submitting questions to Heartland developers and experts.
What Users Think of Heartland Payment Systems
There are not a lot of Heartland Payment Systems reviews, and reactions are mixed but mostly favorable. Users like the system for its user-friendly software and reliable credit card processing.
- G2: Around 10 users rated Heartland an average of 4.4 out of 5 stars.
- GetApp: More than 30 users gave Heartland an average of 4.5 out of 5 stars.
It’s also important to note that the Better Business Bureau (BBB) listed about 65 user complaints for Heartland, mostly centered around billing errors. There was also an issue of fraudulent request for refund entertained by this provider. Of the total complaints, 19 have been closed this year as of this writing, with actions that include reversal of transactions and return of funds.
We noticed these trends when reading through Heartland Payment Systems reviews:
Users Like | Users Don’t Like |
|---|---|
Easy to use platform | Billing errors |
Quick access to funds | Chargeback complaints |
Auto payment features | Hidden fees |
Bottom Line
Heartland Payment Systems offers a wide range of payment processing solutions and excellent POS software. However, there are numerous drawbacks, including undisclosed pricing and consistent complaints of unauthorized and erroneous billings. For these reasons, we encourage small businesses to consider alternatives that are more cost-effective and straightforward with their fees.
