Heartland processes payments for small and mid-sized businesses, handling everything from the moment a customer swipes a card to the moment money lands in your business account
Heartland Payment Systems is a payment processor — the company that sits between your customer, your bank, and the card networks (Visa, Mastercard, American Express). When someone pays you by card, Heartland captures that transaction, sends it through the card network for approval, and then moves the money into your business bank account. They do not hold the money or decide whether to approve it; they move it along the chain and take a fee for doing so.
Heartland operates as a subsidiary of Global Payments, one of the largest payment processors in the United States. They focus on small businesses, restaurants, retail shops, and service providers — the kinds of merchants who process hundreds or thousands of transactions monthly but do not have the scale to negotiate directly with Visa or Mastercard. If you use a Heartland point-of-sale terminal, mobile reader, or online payment form, Heartland is the company handling the transaction on your behalf.
Key Takeaways
- Heartland captures card transactions at your register or online, sends them to the card networks for approval, and deposits the money into your business bank account — usually within one to three business days.
- You pay Heartland a percentage of each transaction (interchange rate) plus a flat per-transaction fee; the exact rate depends on the card type, your industry, and your processing volume.
- Heartland provides the hardware (terminals, readers) and software (point-of-sale systems, payment forms) needed to accept cards, and handles customer disputes and chargebacks.
- Money does not go directly from the customer's card to your account; it moves through the card network, your acquiring bank, and Heartland's settlement system, which is why deposits take a day or two.
- If a customer disputes a charge or requests a refund, Heartland manages that process and can reverse the deposit to your account if the dispute is ruled against you.
How a Heartland transaction moves from card to your bank account
When a customer hands you a card or enters their card details online, Heartland's system captures the information and sends it to the card network (Visa, Mastercard, or American Express). The network checks with the customer's bank to confirm the card is valid and the account has sufficient funds. That approval or decline happens in seconds.
If approved, Heartland records the transaction and batches it with other transactions from your business. At the end of each business day (or on a schedule you set), Heartland sends that batch to your acquiring bank — the bank that holds your business account. The acquiring bank then settles the funds: it collects the money from the card networks and deposits it into your account. This settlement usually takes one to three business days, depending on your bank and the type of cards used.
During that one-to-three-day window, the money is in transit. It has left the customer's account and is moving through the banking system, but it has not yet arrived in yours. Heartland does not hold the money; it is moving through the card networks and your bank. Once it lands in your account, it is yours to use.
What Heartland charges and why the fee structure matters
Heartland makes money by taking a cut of each transaction. That cut has two parts: a percentage of the sale amount (called the interchange rate) and a flat fee per transaction (usually a few cents). A typical small business might pay 2.5% plus $0.10 per transaction, but the exact rate depends on three things: the type of card used, your industry, and your monthly processing volume.
A debit card transaction costs less than a credit card transaction because the risk is lower — the money comes directly from the customer's bank account. A rewards credit card costs more than a basic card because the card issuer has to pay out rewards. A restaurant or gas station pays different rates than a retail shop because those industries have higher fraud risk. And a business processing $50,000 monthly might negotiate a lower rate than one processing $5,000 monthly.
Heartland also charges monthly fees for equipment rental, software access, or customer support — these vary by the package you choose. If you use a Heartland point-of-sale terminal, you might pay a monthly equipment fee. If you use their online payment gateway, you might pay a monthly gateway fee. These fees are separate from the per-transaction charges and are deducted from your account on a set schedule, usually monthly.
The role Heartland plays in disputes and chargebacks
When a customer disputes a charge — saying they did not authorize it, did not receive the goods, or received something damaged — the card network notifies Heartland, which notifies you. You then have a window (usually 7 to 10 days) to respond with evidence that the transaction was legitimate: a signed receipt, a tracking number showing delivery, an email confirming the order, or a photo of the goods delivered.
Heartland does not decide the dispute. The card network and the customer's bank decide it based on the evidence you provide. But Heartland manages the process on your end: it collects your evidence, submits it to the network, and notifies you of the outcome. If the dispute is ruled against you, Heartland reverses the deposit — the money comes back out of your account and goes back to the customer's card.
This is why record-keeping matters. If you cannot prove the transaction was legitimate, you lose the money. Heartland provides tools to help you document transactions (receipts, tracking numbers, delivery confirmations), and most point-of-sale systems automatically store this information. The better your records, the better your chances of winning a dispute.
Why the settlement delay exists and what it means for your cash flow
The one-to-three-day delay between a customer's payment and your deposit is not Heartland holding the money. It is the time it takes for the card networks and banks to move the money through the system. Visa and Mastercard do not transfer money when ready; they batch transactions and settle them on a schedule. Your acquiring bank then processes that settlement and deposits it into your account.
This delay affects your cash flow. If you process $10,000 in sales on Monday, you might not see that money until Wednesday or Thursday. If you have bills due on Tuesday, you cannot use Monday's sales to pay them. Some businesses use this as a reason to keep cash reserves or to negotiate faster settlement with their processor — though faster settlement usually comes with a higher fee.
Heartland offers same-day or next-day settlement for an additional fee, which some high-volume businesses use to improve cash flow. But for most small businesses, the standard one-to-three-day settlement is the default, and it is built into how the entire payment system works, not something Heartland alone controls.
What happens if Heartland goes down or a transaction fails
If Heartland's systems go offline, you cannot process card payments until they come back online. This is rare — Heartland maintains backup systems and redundancy — but it can happen during major outages or cyberattacks. When it does, you have a few options: you can process transactions manually (writing down card details and processing them later when the system is back up), you can accept cash or checks only, or you can use a backup processor if you have one set up.
If a single transaction fails — the customer's card is declined, the network times out, or there is a communication error — Heartland's system will tell you when ready. You can then ask the customer for a different card, try the transaction again, or offer an alternative payment method. Heartland does not charge you for declined transactions; you only pay for transactions that go through.
Heartland also provides fraud detection tools built into their system. If a transaction looks suspicious — a card used in a different country than usual, an unusually large purchase, or a card flagged by the networks — Heartland's system can flag it or decline it automatically. You can adjust these settings based on your business needs, though tighter fraud controls can sometimes decline legitimate transactions.
How Heartland compares to other payment processors
Heartland is one of several large payment processors in the United States. Square, PayPal, Stripe, and Toast are other major players. The differences between them are usually in pricing, the hardware and software they offer, and the industries they focus on. Heartland tends to focus on small retail shops, restaurants, and service businesses; Square and PayPal focus on very small businesses and online sellers; Stripe focuses on online businesses and developers; Toast focuses on restaurants.
All of them work the same way at the core: they capture the transaction, send it through the card networks, and deposit the money into your account. The fees vary, the settlement times vary slightly, and the tools they provide vary. If you are considering switching from Heartland to another processor, the main things to compare are the per-transaction fees, monthly fees, settlement time, and whether the hardware and software they offer fit your business.
Frequently Asked Questions
Why does my deposit show up two or three days after I process a payment?
The money has to move through the card networks and your acquiring bank before it reaches your account. Heartland sends the transaction to the network, the network confirms it with the customer's bank, and then your acquiring bank settles the funds into your account. This process takes one to three business days. Heartland does not hold the money; it is in transit through the banking system.
What happens if a customer claims they did not authorize a payment?
The customer's bank will contact Heartland, which will notify you. You then have about a week to provide evidence that the transaction was legitimate — a receipt, tracking number, delivery confirmation, or email confirmation. Heartland submits your evidence to the card network, which decides the dispute. If you win, you keep the money. If you lose, the money is reversed from your account.
Do I have to use Heartland's point-of-sale terminal, or can I use my own?
You can use Heartland's terminal, a mobile reader, or an online payment form — it depends on your business type and how you want to accept payments. Heartland provides the hardware and software, but you can also integrate their payment gateway into your own system if you prefer. The fees and terms vary by which option you choose.
What if Heartland's system goes down and I cannot process payments?
Outages are rare, but they can happen. When they do, you can process transactions manually by writing down card details and processing them later when the system is back up, or you can accept cash and checks only. Some businesses set up a backup processor for this reason, though it is not required.
Can I negotiate a lower processing rate with Heartland?
Rates are based on your card types, industry, and processing volume. Businesses processing higher volumes may have room to negotiate, and you can always contact Heartland to discuss your rates. But the card networks set the base interchange rates, so Heartland's margin is limited. Shopping around with other processors is often the best way to find a better rate.