Heartland is a payment processor that handles credit card and debit card transactions for small businesses
Heartland Payment Systems is a company that processes card payments — meaning it's the middleman between a customer's bank, a business's bank, and the card networks like Visa and Mastercard. When you swipe or tap a card at a store, Heartland's technology moves that money from your account to the business's account. The company also provides the equipment and software that businesses use to accept those payments.
Heartland primarily serves small to mid-sized businesses: restaurants, retail shops, salons, gas stations, and other merchants that need to accept cards in person or online. They're one of several large payment processors in the United States, alongside companies like Square, PayPal, and First Data.
The company was founded in 1997 and is now owned by Global Payments, a larger financial services company. You may not interact with Heartland directly as a customer — you'll only see their name if you're the business owner setting up card payments, or if you look at a receipt and see "Heartland" printed on it.
Key Takeaways
- Heartland processes card payments for businesses, moving money from customer accounts to merchant accounts through card networks.
- The company provides the physical terminals, software, and online payment tools that small businesses use to accept cards.
- Heartland charges businesses a fee for each transaction, usually a percentage of the sale plus a small flat fee per transaction.
- As a customer, you don't choose Heartland — the business you're paying chooses it, and you may never know it was used.
How Heartland processes a card payment
When you hand a card to a cashier or enter your card details online, several things happen in seconds. The business's terminal or website sends your card information to Heartland. Heartland checks with your bank to confirm the card is real, the account has enough money, and there are no fraud flags. Your bank approves or declines the transaction.
If approved, Heartland sends the transaction to the card network (Visa, Mastercard, American Express, or Discover). The network routes it to your bank, which deducts the money from your account. Your bank sends the funds to the business's bank, minus fees that Heartland and the card network take. The whole process usually takes a few seconds in person, or a few minutes online.
Heartland keeps a record of the transaction and sends the business a report at the end of the day showing all the cards they processed. The business can see which transactions went through, which were declined, and how much money they're receiving.
What Heartland charges businesses
Heartland makes money by charging the business a fee on each card transaction. This fee is usually split into two parts: a percentage of the sale (often between 1.5% and 3.5%, depending on the card type and the business's agreement) plus a flat fee per transaction (often $0.25 to $0.30).
For example, if a customer buys $100 worth of groceries with a Visa card, and the business's rate is 2.5% plus $0.30, the business pays Heartland $2.80 and receives $97.20. The exact rate depends on the type of business, the volume of transactions, and the contract the business negotiated with Heartland.
Businesses also pay for the equipment — the card reader, the terminal, or the software — either upfront or as a monthly rental fee. Some businesses lease their terminal from Heartland for $20 to $50 per month, while others buy it outright.
The difference between Heartland and other payment processors
Heartland competes with Square, PayPal, Stripe, and others. The main differences are in pricing, equipment, and the types of businesses they target. Square is known for straightforward, transparent pricing and works well for very small businesses and pop-up shops. Heartland typically serves established small businesses that process higher volumes and want more customization.
Heartland also offers more specialized tools: inventory management, employee timekeeping, gift card systems, and integration with accounting software. Square focuses on simplicity; Heartland focuses on features for a business that's already running and wants to grow.
All payment processors do the same core job — they move money from customer to business — but they differ in price, ease of setup, and the extras they bundle in. A business chooses based on what they need and what they can afford.
Why businesses choose Heartland
Businesses pick Heartland for a few reasons. First, the company has been around for over 25 years and is owned by a large, stable company (Global Payments), so businesses trust it won't disappear. Second, Heartland offers support by phone and email, which matters to business owners who aren't tech-savvy. Third, the company works with many types of businesses and has built tools specific to restaurants, retail, and other industries.
Heartland also has a large network of resellers — companies that sell Heartland's services on behalf of Heartland — so a business owner might encounter Heartland through a point-of-sale system they already use, or through a business consultant they hired.
Security and fraud protection
Heartland handles sensitive information — your card number, expiration date, and sometimes your address — so security matters. The company is PCI DSS compliant, which means it meets strict standards set by the card networks for protecting card data. Heartland encrypts card information in transit and at rest, and it doesn't store full card numbers on receipts or in databases longer than necessary.
Heartland also monitors transactions for fraud. If a transaction looks suspicious — a card used in two different states in one hour, or a purchase pattern that doesn't match the account holder's history — Heartland flags it and may decline it or ask for extra verification.
As a customer, you're protected by your bank and the card network, not by Heartland directly. If someone uses your card without permission, you report it to your bank, and your bank handles the dispute. Heartland's job is to make sure the transaction is legitimate before it goes through.
Heartland's data breach history
In 2008 and 2009, Heartland suffered a major data breach in which hackers accessed millions of card numbers. The breach was one of the largest in U.S. history at the time. Heartland paid settlements to banks and customers, and the company overhauled its security practices. The breach led to stricter PCI standards across the entire payment industry.
Since then, Heartland has invested heavily in security and has not had a major public breach. However, the 2008 breach is part of the company's history and is why some businesses research Heartland's security record before signing on.
Frequently Asked Questions
Do I have to use Heartland if I shop at a store that uses it?
No. You can always pay with cash, or use a different card if the business accepts multiple payment methods. However, most businesses that accept cards accept all major card networks, so you won't be turned away. Heartland is invisible to you as a customer — you're paying the business, not Heartland.
Is Heartland safe to use?
Yes, Heartland is PCI compliant and encrypts card data. Your bank and the card network also protect you. If fraud occurs, your bank handles the dispute. The 2008 breach was serious, but the company has since strengthened security. Your risk is the same as with any major payment processor.
Can I get a Heartland account as an individual?
Heartland primarily serves businesses, not individuals. If you're a freelancer, small business owner, or seller, you can set up a Heartland account. You'll need a business license or tax ID, a business bank account, and a few months of transaction history. Contact Heartland's sales team or a reseller to start.
What happens if Heartland goes down?
If Heartland's systems go offline, businesses can't process card payments until the service is restored. Most businesses have a backup plan — they can take card information manually and process it later, or they can accept cash and checks. Heartland has redundant systems to prevent outages, but they do happen occasionally.