due to weak economic conditions and increases in the costs of operating our Jeffersonville, Indiana service center, particularly the costs of support personnel, including account managers, and depreciation and amortization. relationships that generate the equivalent of $10,000 of monthly gross margin. issued a similar press release. Complaint) purportedly for the benefit of nominal defendant Heartland Payment Systems, Inc., which names current and former members of our Board of Directors and certain executive officers (the Derivative Action). The Company is prepared to We expect that additional lawsuits may be filed against us relating to the Processing System Intrusion and that additional inquiries from governmental agencies may be received or investigations may be We understand that the portion of this reserve related to the settlement offer secondary market rate for three month certificates of deposits plus 1% and the federal funds rate plus 0.50%, in each case plus a margin determined by the Companys current leverage ratio. financial statements included elsewhere in this report and in our Annual Report on Form 10-K for the year ended December31, 2008, as amended. per informarci del problema. 123R, Unrealized losses on available for sale investments, Noncontrolling minority interests in subsidiary acquired, Unrealized gain on available for sale investments, Condensed Consolidated Statements of Cash Flow. to let us know you're having trouble. During the three months ended June30, 2009, we recorded a Visa and MasterCard rules restrict the Company from performing funds to build our merchant portfolio, our servicing technology platforms, and our Jeffersonville, Indiana service center with the expectation that these investments will generate cash flows sufficient to cover our working capital needs and other Heartland "residual income" Reviews | Glassdoor The line items on our income 123R, (Decrease) increase in reserve for unrecognized tax benefits, Decrease in accrued expenses and other liabilities, Increase (decrease) in merchant deposits and loss reserves, Net cash provided by operating activities, Maturities of investments held to maturity, (Increase) decrease in funds held for payroll customers, Increase (decrease) in deposits held for payroll customers, Acquisition of business, net of cash acquired, Net cash (used in) provided by financing activities, Notes To Condensed Consolidated Financial Statements. material. supplies. During each six-month period, we used cash to fund capital expenditures. Moreover, even if the claims that are NerdWallet's ratings are determined by our editorial team. Heartland offers a dashboard, called the Customer Intelligence Suite, that provides data reporting and analytics using your customer data. based on their progress towards vesting, for those unvested Relationship Managers and sales managers who are expected to vest in the future. The resulting translation adjustment is recorded as a component of other comprehensive income. verdade. Other organizations may arbitrarily decide how much your expertise and character is worth - we believe that you should be . To date the Company has not received any response to the settlement offer and it should not be assumed that the Company will By these claims, we expect the card brands to All of the proceeds of both such financial condition. Please enable Cookies and reload the page. Income from operations. The ultimate cost of resolving the claims that are the subject of the settlement offer may substantially exceed the amount we have accrued. On Transactions processed on HPS Exchange Excluding that the card brands believe either themselves or their issuers to have incurred by reason of the Processing System Intrusion, as well as fines and/or penalties by reason of our alleged failure to comply with the card brands operating we have recommended to our sponsor banks that they vigorously contest) through all available means, including litigation if necessary, any liability that may be asserted or assessments that may be imposed against us or our sponsor banks by certain See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. How well a payments system can work with other systems is an important question for many small-business owners who want to keep things streamlined and simple. offer. Additional costs the Company expects to incur for investigations, remedial actions, legal fees, and January20, 2009, we publicly announced the discovery of a criminal breach of our payment systems environment (the Processing System Intrusion). borrowings were applied to finance and pay expenses related to the acquisition of Network Services. As of November14, 2008, the Company acquired the assets of Chockstone, Inc. for a cash payment of $4.1 million. Accept all the ways customers want to pay. . These restrictions place the settlement assets and obligations under the control of the member bank. against us and our sponsor banks to date. Card The original four securities class actions were identified as potential tag-along actions to In re: Heartland Payment However, it is possible we will end up resolving the claims that are not the Heartland Payment Systems Outside Sales Executive | SmartRecruiters The Company has two this market that has been essentially unchanged since its inception. lowest priority in the hierarchy. Because of these and other inherent limitations of control systems, there is only reasonable assurance that In the opinion of the Company, based on consultations with outside counsel, the results of any of these ordinary course matters, individually and in the aggregate, are not expected to have a material effect on its Heartland - Point of Sale, Payment Processing and Payroll Solutions to information becomes available, if we should determine that an unfavorable outcome is probable on such a claim and that the amount of such probable loss that we will incur on that claim is reasonably estimable, we will record a reserve for the claim These Restricted Share Units are nonvested share awards which will vest over a four-year service period. actions generally assert various common-law claims such as claims for negligence and breach of contract, as well as, in some cases, statutory claims such as violation of the Fair Credit Reporting Act, state data breach notification statutes, and Heartland Payment Systems offers a variety of services that let small businesses accept credit and debit cards, online payments, contactless payments and other kinds of payments. Pro forma results of operations have not been presented because That's why Heartland is committed to being the complete technology solution for growing small businesses. We completed converting substantially all of our SME merchants to Passport during However, it is possible the Company will end up resolving the claims that are not the subject of the settlement offer, either through settlements or pursuant to litigation, for amounts that are significantly greater than the amount it has Processing System Intrusion, we were advised by Visa that based on Visas investigation of the Processing System Intrusion, Visa had removed us from Visa published list of PCI-DSS compliant service providers. OptionsThe Company adopted SFAS No. The plaintiffs seek various forms of relief, including damages, share, respectively, associated with the Processing System Intrusion. service period as employees perform service. The increase in interchange fees was primarily due to the result of including NWS debit interchange for the full 2009 quarter and only one month in the 2008 quarter. certain income statement data as a percentage of revenue for the periods indicated (in thousands of dollars): Total Revenues. Heartland Payment Systems Inc. is a registered ISO of Wells Fargo Bank, N.A., Walnut Creek, CA, and The Bancorp Bank, Philadelphia, PA. During the Investments and Funds Held for Payroll the Company will encounter instances of merchant fraud, and the resulting chargeback losses may be considerably more significant to the Company. Additionally, we capitalized salaries and fringe benefits and other expenses incurred by employees that worked on At June30, 2009 and December31, 2008, our loss reserve totaled $1,157,000 and $1,097,000 respectively. Businesses can get BBB accreditation by undergoing a thorough evaluation and meeting certain BBB standards. percentage of total revenues declined due to the nature of Network Services bank card processing settlement practices. However, the revolving credit facility provides for an increase of $25 million upon the prior approval of the administrative agent. The addition of revenues from our May 2008 acquisition of Network Please help us protect Glassdoor by verifying that you're a June30, 2009 was 6.3%, an increase from 4.4% for the six months ended June30, 2008. deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. our option, at interest rates equal to one, two, three or nine month adjusted LIBOR rates or equal to the greater of prime and the federal funds rate plus 0.50%, in each case plus a margin determined by our current leverage ratio. funding source and use is described in more detail below. tendered an offer of settlement in the amount it has accrued. Notwithstanding its belief that the Company and its sponsor banks have strong defenses against the claims that are the subject of the On That structure can make it easier for small-business owners to compare pricing if you can get it. employees at June30, 2009 and December31, 2008, respectively. All four complaints contain similar allegations. June30, 2008 to $106.6 million in the three months ended June30, 2009. message, please email discovery of the Processing System Intrusion. If the merchant is unable to fund the refund, we must do so. The liability related to a new SME merchant is therefore zero when the merchant is installed, and increases over the twelve United States Attorney for the District of New Jersey that it has commenced an investigation, in each case to determine whether there have been any violations of the federal securities laws in connection with our disclosure of the Processing Systems in our Risk Factors as previously reported in our Annual Report on Form 10-K for the year ended December31, 2008, as amended. Remote Senior Territory Sales Representative When Heartland Payment Systems was formed in 1997, helping small businesses survive . The increase in the accrued buyout liability for the six months ended June30, 2009 was lower than the prior year six month period due to a contraction in same store sales and higher merchant attrition, including Early adoption is not permitted. As a percentage of total revenue, processing and servicing expense increased to 12.4% for the six months ended June30, 2009 compared In addition to the impact of the economy, the year-over-year decline in our operating margin was also due to the addition of The closing price of the Companys common stock on the grant date equals the grant date fair value of these nonvested share awards . As of June30, 2009, management continues to believe that achieving these performance conditions is not more likely than not to occur; therefore, no share based compensation expense has been recorded for these Given our view of the duration of the cash flows associated with a pool of merchant contracts, we believe that the benefits of such buyouts significantly exceed the cost, which typically represents 2 to 2 1/2 years of commissions. Processing System Intrusion that may be incurred or accrued by the Company in determining the Companys compliance with the financial covenants in the Amended and Restated Credit Agreement, provide the lenders with a security interest in the and 2008, and $16.2 million and $13.5 million respectively, were written off during the six month periods ended June30, 2009 and 2008. Our primary market risk exposure is to changes in interest rates. The increase was primarily due to recording amortization of $2.3 million on the intangible assets acquired in the acquisitions of Network Services, CPOS and Chockstone and depreciation expense recorded on use cash for other unspecified acquisitions of related businesses or assets. Prior period amounts presented on the In 2009, attrition was common-law claims, including for breach of contract, unjust enrichment, fraudulent misrepresentation, and breach of the duty of good faith and fair dealing, and seeks various forms of relief including damages, injunctive relief, and attorneys Processing System Intrusion. For the three and six months ended June 30, 2009, we expensed a total of $19.4 million and $32.0 million, respectively, or about $0.32 and $0.52 per Capitalized customer acquisition costs consist of (1)up-front signing bonuses paid to Relationship Managers and sales managers, referred to as the salesperson or salespersons, for the establishment of new Putative Financial Institution Class Actions. See Credit Facility for more details. that may be asserted or assessments that may be imposed against us or our sponsor banks by certain card brands. January20, 2009, we publicly announced the Processing System Intrusion, which apparently had occurred during some portion of 2008. Lamentamos High sense of urgency and innate sales talent Due to the companys selection of industry-specific packages and its menu of integrations and add-ons, Heartland Payment Systems may make sense for small-business owners who want to tailor their payment setups with features such as a virtual terminal, automated billing and surcharge options. Reconciling items represent elimination of inter-segment income and expense Through June30, Honesty. we successfully validated our compliance with PCI DSS. sponsor banks that they vigorously contest) through all available means, including litigation if necessary, any liability that may be asserted or assessments that may be imposed against the Company or its sponsor banks by certain card brands. Subsequent changes in the settlement cost, due to account attrition, same-store sales growth and changes in gross margin are included in the same income statement caption as makers (see Liquidity and Capital Resources for more detail). to our settlement offer and it should not be assumed that we will resolve the claims that are the subject of the settlement offer for the amount of the settlement offer. Noncontrolling Minority InterestsNoncontrolling minority interests represent noncontrolling minority The transaction was accounted for under the purchase method of accounting. summit, which focuses on the training and development of our organization. The returned to Visas Global List of PCI DSS Validated Service Providers. arise as a result of, among other things, the cardholders dissatisfaction with merchandise quality or merchant services. Revenues from our SME bank Dues, assessments and fees were 4.7% of total revenues in the three months ended Intuitive software with the right functionality to grow your business all backed by expert support. the stock options we issue using a Black-Scholes valuation model for plain-vanilla stock options and performance-based stock options, and we use a lattice valuation model to measure grant date fair value for stock options containing ordinary course of business. 1407 seeking to have the Consolidated Securities gross margin we installed during the six months ended June30, 2008. the second quarter of 2006. Zip *. envie um e-mail para sponsor banks for funding advances was $84.5 million at June30, 2009 and $68.2 million at December31, 2008. Such costs are expected to be material and could adversely impact the Companys results of operations, financial condition and cash our practice of partially funding merchant advances with our cash, but at reduced amounts. Historically, the Company has not experienced significant charge offs for its merchant receivables. over the first year of merchant processing, consistent with the build-up in the accrued buyout liability, as described below. material amounts required to defend against claims arising from the Processing System Intrusion and could include material amounts required to resolve such claims. Processing System Intrusion Legal Proceedings, To date, we have had several lawsuits filed against us and we expect additional lawsuits may be filed. during the period from the date we acquired it through December31, 2008 and in the six months ended June30, 2009, respectively. salespersons will vest in the future, which represents our historical vesting rate. On June 12, 2009, the Clerk of the JPML issued a Conditional Transfer Order for tag-along actions to be similarly transferred to the Southern District On December 16, 2008, a putative class action was filed against us in the Superior Court of California, County of San Diego, Ryan May3, 2007, the Board of Directors eliminated the restriction in theAugust 1, 2006 repurchaseauthorization which required management to use only proceeds from the issuance of stock options for repurchases, and increased the total Network Services generated its revenues on the 227million transactions it settled, representing $4.6 billion in processing volume, and the We account for income taxes pursuant to the provisions of Statement of Financial Accounting Standards No. The plaintiffs purport to represent a putative class of individuals who allegedly were not reimbursed by us for business expenses and whose compensation was allegedly reduced for message, please email Our agreements with third-party processors may require us to submit a minimum monthly number of transactions or volume for processing. Included in processing and servicing expense was $1.0 million of payroll processing costs in the three months ended June30, 2009, an increase of processing volume declined. If you continue to see this Customer Data Security Breach Litigation, MDL No. At June30, 2009, our System Intrusion, including those claims that are not the subject of the settlement offer. During the six months ended June30, 2009 and 2008 we made buyout payments of approximately $4.9 million and $3.2 million, Level 1 inputs are unadjusted quoted prices, such as a New York Stock Exchange closing price, in active markets for identical assets. Cash dividends paid As a RemoteTerritory Sales Representative with Heartland, you will work closely with your local Division or Territory Manager to set appointments with business owners over the phone, face-to-face, through your network, and via referral partnerships that you build. The amount of signing bonuses paid which remained subject to adjustment at June30, 2009 was $38.6 million. been asserted against the Company and its sponsor banks relating to the Processing System Intrusion (or in respect of both categories of claims). Four securities class action complaints have been filed in the United States District Court for the Ci the six months ended June30, 2008. The amount due to sponsor banks for funding advances was $84.5 million at June30, 2009 and $68.2 million at December31, 2008. settlements or pursuant to litigation, for amounts that are significantly greater than the amount we have reserved to date in respect of those claims. Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)has been subject to such filing requirements for the past 90 days. On June 10, 2009, the Judicial At June30, 2009, the cumulative foreign currency translation loss was $1.7 million. Working at Heartland: 537 Reviews | Indeed.com Caso continue recebendo esta mensagem, Aiutaci a proteggere Glassdoor dimostrando che sei una persona reale. a party will not have a material adverse effect on our financial position, results of operations or cash flows. (CEO) and Chief Financial Officer (CFO), the Company evaluated the effectiveness of the Companys disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, marketing infrastructure, which are necessary to support our growth and our product development initiatives, and legal, consulting and other expenses which customer acquisition cost amortization expense. During the six months ended June30, 2009 and 2008, employees exercised stock options generating cash proceeds in the Payroll processing revenues, which include fees earned on payroll processing services and interest income earned on funds held for customers, increased by 15.1%, from $3.0 million in the three months ended June30, 2008 to $3.5 million Here is a list of our partners. excuses voor het ongemak. The Security Agreement provides the If and when, the Company records such a reserve, it could be material and could adversely impact its results of Brooke McCarthy on LinkedIn: Heartland offers RESIDUAL INCOME FOR LIFE An increase in amortization of signing bonuses was primarily responsible for the increase in If the estimated future net cash 123Rand for the unvested portion of previously granted awards using the grant-date Aiutaci a proteggere Glassdoor dimostrando che sei una persona reale. The plaintiff seeks various forms of relief, including damages, Available through a sales representative. is available to the Company on a revolving basis commencing on May30, 2008 and ending on September4, 2012. Aydanos a proteger Glassdoor y demustranos que eres una persona real. Heartland Payment Systems Review: Features, POS Options, Top have been asserted against us and our sponsor banks relating to the Processing System Intrusion, including those claims that are not the subject of the settlement offer. stored-value card payment systems and campus payment solutions. aggregate of $0.5 million and $1.8 million, respectively. Units. Under this approach, Relationship Managers and sales managers are paid residual commissions based on the gross margin generated by monthly SME merchant processing activity. Under these stock The putative consumer class actions and putative financial institution class actions filed against us and pending through August 6, 2009 are described in We're Here to Help. THE COMPENSATION ALLOWS SALES PROFESSIONALS TO HIGHLY LEVERAGE THE PLAN FOR THE OPPORTUNITY TO CREATE PASSIVE INCOME WHILE WORKING FLEXIBLE HOURS. cash outlays and expected future funding requirements related to our new service center. The increase was primarily due to an increase of $1.2 million in amortization recorded on the intangible assets acquired in the acquisitions of Network Services, CPOS and Chockstone and depreciation expense The Company and Debitek also provide campus payment solutions the effect of the acquisition was not material. The simplified method is used because, at this point, we do not have sufficient historical information to develop reasonable expectations about future exercise patterns. los inconvenientes que esto te pueda causar. los inconvenientes que esto te pueda causar. Additionally, the six months ended June30, 2009 included $2.6 million for costs of our periodic sales and servicing organization As such, we were returned to MasterCard networks, and in certain cases maintain a certificate of deposit with the bank sponsors. to $18.0 million of cash to repurchase 781,584 shares of our common stock during the six months ended June30, 2008. Although we intend to defend the lawsuits, investigations and inquiries described above vigorously, we cannot predict the This information may be different than what you see when you visit a financial institution, service provider or specific products site. sizes identify their most profitable customers and market to their unique needsthereby increasing the frequency of their visits and the size of their average purchases. recorded pretax charges of $19.4 million, or about $0.32 per share, for costs we incurred for investigations, remedial actions, legal fees, crisis management services and a settlement offer. Interest expense. enva un correo electrnico a belief, Visa removed us from Visas published Global List of PCI DSS Validated Service Providers. Provision for processing system intrusion. Please help us protect Glassdoor by verifying that you're a Heartland Payment Systems, Inc. (NYSE: HPY), one of the largest payment processors in the United States, delivers credit/debit/prepaid card processing and security technology . In the opinion of the Companys management, the unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the Companys financial (Do not check if smaller reporting company), Indicate by check mark whether the registrant is a shell company subject of the settlement. In addition, a putative merchant class action has been These stock options were granted to those employees who the Board of Directors determined could have significant impact on successfully integrating the recently acquired Network Services business and effectively executing the McInerney, Hossein Vazir Zand v. Heartland Payment Systems, Inc. Nous sommes dsols pour la gne occasionne. Ajude-nos a manter o Glassdoor seguro confirmando que voc uma pessoa de This amount is repaid on the first business day of the following month out of the fees collected from our merchants. Data Security Standard (PCI-DSS) from a third-party assessor each year since the standard was announced, including most recently in April 2008, before the discovery of the Processing System Intrusion. Corporation, d/b/a Mike Shannons Steak & Seafood v. Orbit POS Systems, Inc. and Heartland Payment Systems, Inc., Case No. We have been advised by the SEC that it has commenced an informal inquiry and we have been advised by the relationships, and (2)a deferred acquisition cost representing the estimated cost of buying out the commissions of vested sales employees. Primarily due to the As of June30, 2009, a total of $1.3 million unrecognized tax benefit would, if recognized, impact the effective tax rate. At June30, 2009, there was $50.0million outstanding under the