Jessy Edwards  |  July 26, 2021

Category: Fees

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(Photo Credit: Drazen Zigic/Shutterstock)

A Fortune 100 payment processing company raked in millions of dollars in new fees charged to restaurants and bars during the pandemic, some of which weren’t even open at the time, a new class action lawsuit alleges.

Plaintiffs Black Ship, 33 Taps, and Hinoki the Bird — all restaurants or bars — filed the class action lawsuit against Heartland Payment Systems last Tuesday in a New Jersey federal court. 

The businesses claim the payment card processor “dramatically increased” their monthly fees without consent or warning, and at their expense.

The trio say Heartland markets its credit and debit card processing services to small and medium-sized businesses by allegedly claiming its fees are fair and its billing practices are transparent. 

“Heartland assures merchants it does not engage in a common industry practice: charging merchants hidden and confusing ‘junk’ fees,” they say.

“However, Heartland abandoned any semblance of honest or transparent billing practices by charging merchants extra fees and burying those charges within a labyrinthine of other charges in monthly statements.”

They say, by imposing new fees without required notice, Heartland “flagrantly disregarded” the promises and agreements it made to them and other merchants. They are suing for breach of contract, breach of good faith and fair dealing, violations of the New Jersey Consumer Fraud Act, and unjust enrichment. 

The plaintiffs say, in July 2019, Heartland began charging a monthly $125 “PCI Non-Compliance Fee” that was not authorized by any former agreement. 

Heartland assessed a PCI Fee on Black Ship for approximately $1,500, and a PCI fee on 33 Taps in December last year, even though the bar was closed at this time due to the pandemic and processed no transactions, they allege.

Heartland also allegedly started charging merchants a $69 “Reporting Fee” that was not authorized, a monthly $8.50 “Service & Regulatory Mandate” fee, a monthly $54.95 “Customer Intelligence Suite” fee, and two other transaction-based fees. 

“Heartland charged these fees to its merchants, often amounting to hundreds or thousands of dollars of extra fees for each merchant each month,” the plaintiffs say.

“Each of these fees was unauthorized, violated Plaintiffs’ Agreement, and was imposed by Heartland without proper notice and without providing an Amended Schedule of Fees or an amended Merchant Processing Agreement.”

The class action lawsuit says, by charging its merchants these fees, Heartland increased its revenues by “tens or hundreds of millions of dollars,” violated its contracts with its merchants, and reneged on its representations to those merchants. 

They’re looking to represent all Heartland customers who processed credit card or debit card transactions through Heartland at any time after 2018 and who were charged by Heartland a PCI Non-Compliance Fee, a Reporting Fee, a Service and Regulatory Mandate Fee, a Customer Intelligence Suite Fee, a Non-EMV Assessment Fee, and/or a Non-EMV Program Fee. 

They’re seeking certification of the class, damages, an injunction, interest, fees, costs and a jury trial.

In 2010, Heartland paid a $4 million settlement to settle a class action lawsuit that alleged the payment-processing company was negligent and failed to adequately protect consumers’ personal financial information in a large criminal data breach.

Do you use Heartland Payment Systems? Let us know your experience in the comments! 

The plaintiffs are represented by Olimpio Lee Squitieri of SQUITIERI & FEARON, LLP 

The Heartland Payment Systems Class Action Lawsuit is Black Ship, et al., v. Heartland Payment Systems, Inc., Case No. 3:21-cv-13855, in the United States District Court District of New Jersey.


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12 thoughts onRestaurants Sue Heartland Payment Systems Over Flood of New Fees During Pandemic

  1. Valeria Strode says:

    How do I join this law suit?

  2. Elizabeth Morris says:

    How can we join the class action?

    1. Kellie says:

      I have also just discovered their “CIS” fee of $54.95 when I inquired about getting itemized copies of statements. They directed me to website and I logged in and have been charged since April of 2020. I want a full refund but they will ONLY give me 6 months worth of credit IF I sign a loyalty agreement otherwise they will charge the refund back if I leave. I turned in my 30 day notice in my response to manager on the phone immediately after that statement. How dishonest! Have you found out how to join this lawsuit?

  3. Maria Rego says:

    How can we join the class action?

  4. S. Copeland says:

    I have been ripped off by Heartland with DOUBLE the amount of my monthly statement
    than the previous year, on the same amount of deposits per month. I called and was told i was
    informed of the rate increase. I was NOT. They hide their info and they won’t let me access my
    online account to see my statements. This is fraud!!

  5. Anthony Clancy says:

    How do I join in on this because that company is charging me hundreds each month when they said it was a no fee account when I signed up

  6. Spencer Sujjaporamest says:

    I own a wholesale clothing company and I too was charged these hidden fees without consent. Did not realize the fees were being billed for months. When discovered, I contacted customer service who refused to reverse the unethical charges and told me that I should always read everything on the statements. How can I join this class action suit?

  7. John Klucznik says:

    They charge the “Customer Intelligence Suite” fee to everyone. I selling cleaning chems. They slide it in, it offered zero benefit and then you had to pull teeth to get some of your money back. You should broaden the suite.

  8. James Mansell says:

    I was charged at both of my restaurants for these fees. I would love to join in on this suit.

    1. Kevin Mullins says:

      My wife and I own two businesses that use heartland, they have been charging these hidden fees to us as well. One of them is a service-based business the other is animal care. We were on the telephone with them for approximately two hours today and they absolutely will not resolve this problem. The The contract that I have with the company actually ended in 2008 we have not signed a new contract that allows for any of these fees to be charged.

      The representative told me that since I have been out of contract for 14 years that they can charge me anything for anything basically there are no guidelines or stipulations.

      This is a very unethical company.

  9. Yuki Havern says:

    I am dealing with all the fees also. I am closed during the summer and was charged for the PCI fee! I was charged in May for swipe fees. These hidden fees are ridiculous!

  10. Mark Bounds says:

    It’s not just restaurants. It’s retail business as well

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