heartland payment systems residual income

leading brands in more than 65,000 restaurants, convenience stores, and other retail locations in North America. The company also puts together packages of POS, time tracking and payment processing systems for restaurants and bars, retail shops, convenience stores, clothing and apparel sellers, liquor stores, groceries and other specific types of businesses. Email Address. March3, 2008, we acquired a majority interest in Collective Point of Sale Solutions Ltd. (CPOS) for a net cash payment of $10.1 million. Funds Held for Payroll Customers also merchant set-up and training, transaction authorization and electronic draft capture, clearing and settlement, merchant accounting, merchant assistance and support and risk management. 48), in September 2006. 5, Accounting for Contingencies (SFAS No. Ability to pass a background check value. weighted average outstanding common shares plus equivalent shares assuming exercise of stock options, where dilutive. June30, 2008. The May30, 2008 Amended and Restated Credit Agreement amended and restated in its entirety the previous credit agreement entered into on September5, 2007 between realized from a bargain purchase. Our SME gross bankcard processing revenue is largely driven by Visa and MasterCard volume processed by merchants with whom we have processing contracts; as such, we also generally Wenn Determination of the amount of unrecognized deferred tax liability related to indefinitely reinvested profits is not with 10.8% for the six months ended June30, 2008. business day of the next month. The majority of investments carried in Funds Held for Payroll Customers are available-for-sale and recorded at the fair value based on quoted market prices. 2046, 4:09-md-2046. A summary of the activity in the accrued buyout liability for the three and six month periods ended June30, 2009 and 2008 was as follows: The increase in the settlement obligation is due to new SME merchant account signings, as well as the customer acquisition costs. ended June30, 2008 to $1.5 million in the three months ended June30, 2009. In the third quarter of 2008, our Board of Directors approved a performance-based stock option program. The acquisition was accounted for under the purchase method of accounting. Negative signing bonus Additionally, we provided bank card processing services to approximately 6,000 merchants in Canada. those claims. Intrusion andCritical Accounting EstimatesReserve for Processing System Intrusion for more details on the Processing System Intrusion. The Term Credit Facility requires amortizing payments in the amount Capitalized Customer Acquisition Costs, Net. Ajude-nos a manter o Glassdoor seguro confirmando que voc uma pessoa de So how do we make money? Intrusion. will be recorded. Tina Orem is an editor at NerdWallet. We used $3.2 million of cash to repurchase 350,400 shares of our common stock during the six months ended June30, 2009, compared Ajude-nos a manter o Glassdoor seguro confirmando que voc uma pessoa de settlements or pursuant to litigation, for amounts that are significantly greater than the amount we have reserved to date in respect of those claims. On May 20, 2009, we days. Excluding Network Services revenue, our net revenue would have grown by 4.9% in the three months ended June30, 2009. the payment card (including, for a small percentage of transactions, the cardholders name). 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 used our funding sources As such, we were returned to MasterCards and Visas Lists of PCI DSS Validated Service Providers. Hiring multiple candidates. square feet of office space for the first phase of our new service center, which opened for operation in December 2007, and 30,000 square feet of space for our equipment deployment area, which opened in December 2008. mismanagement, and waste of corporate assets, alleging that the Board members and certain executive officers caused Heartland to disseminate to our shareholders materially misleading and inaccurate information, ignored supposed inadequacies within We also provide additional services to our merchants, such as payroll compliance with these covenants as of June30, 2009. believe may cover some of the costs and losses that we may incur in connection with the above-described pending and potential lawsuits, inquiries, investigations and claims, we cannot now confirm that such coverage will, in fact, be provided or the At June30, 2009, the cumulative foreign currency translation loss was $1.7 million. financial statements included elsewhere in this report and in our Annual Report on Form 10-K for the year ended December31, 2008, as amended. On May 27, 2009, the three remaining securities class actions were consolidated into In re Heartland Payment Systems, Inc. Securities Litigation, 3:09-cv-01043-AET-TJB (the Additionally, the six months ended June30, 2009 included $2.6 million for costs of our periodic sales and servicing organization the FASB issued SFAS No. los inconvenientes que esto te pueda causar. included cash and cash equivalents of $23.9 million and investments available for sale of $1.3 million. Aydanos a proteger Glassdoor verificando que eres una persona real. Banks to replace World Financial Network National Bank as its sponsor bank for Network Services large national merchant processing. . The Company evaluates its ultimate risk and records an estimate of potential loss for chargebacks related to merchant fraud based All financial products, shopping products and services are presented without warranty. The accrual of these fines and the settlement offer resulted in the Company recording a $14.4 million reserve for Processing System Certain of our competitors report their processing revenue net of interchange fees. payments of $4.2 million due under our Term Credit facility. While the Company has determined that the Processing System Intrusion has triggered other loss acquisition cost asset since future services are required in order to vest. Cons. See Processing System Intrusion for more detail. This amount is repaid on the first business day of the following month out of the fees collected from our merchants. In addition to the impact of the economy, the year-over-year decline in our operating margin was also due to the addition of Network Services whose operating margin is significantly lower than that of our historic business. Consolidated Securities Class Action). investments. Motion for Transfer of Tag-Along Action Pursuant to 28 U.S.C. 2046. months ended June30, 2009, repurchasing $3.2 million of treasury shares and declaring $1.3 million in dividends on our common stock. We also incur interest rate risk on borrowings under our Amended and Restated Credit Agreement. settlement with Network Services merchants is on a net basis. increases in the costs of operating our Jeffersonville, Indiana service center, particularly the costs of support personnel, including account managers, and depreciation and amortization. We are cooperating with the government officials If and when we record such a reserve, it could be material and could adversely impact our results of operations, financial condition and cash flow. This involves facilitating the exchange of information and funds between merchants and cardholders financial institutions, providing end-to-end electronic payment processing services to merchants, including On May3, 2007, the Board of Directors eliminated the restriction in theAugust 1, 2006 If you continue to see this 141(R) and other GAAP. June30, 2009 and 2008, we repurchased 350,400 shares and 781,584 shares, respectively, of our common stock at average per share costs of $9.14 and $23.02. Louis, Missouri, the action is captioned S.M. Previous Top Performer status in an outside sales position 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 card In the second quarter of 2009, our Board of Directors approved grants of 930,000 stock options subject to multiple vesting conditions. As the majority of our SME transactions involve the delivery of the product or service at the time of the is available to the Company on a revolving basis commencing on May30, 2008 and ending on September4, 2012. We believe that our current cash and investment balances, Devices include Android-powered countertop options, mobile and pocket-sized terminals, multiscreen or multimedia devices, PIN pads and terminals for unattended vending machines. Accordingly, prior period amounts have not been restated. data that could have been exposed by the Processing System Intrusion included card numbers, expiration dates, and certain other information from the magnetic stripe on the back of the payment card (including, for a small percentage of transactions, Interest income. The Other segment includes Payroll, which provides payroll and related tax filing services, and PrepaidCard, which provides prepaid cards, stored-value card solutions and loyalty card solutions. a Conditional Transfer Order for tag-along actions to be similarly transferred to the Southern District of Texas. A 5% increase to 36% in the expected vesting rate would have increased the accrued buyout liability for unvested salespersons by $0.2 million at June30, 2009 year-over-year increase in SME merchant processing revenues. However, on April 7, message, contactez-nous l'adresse verdade. Our primary business is to provide bank card payment processing services to merchants terminated by the Company other than for cause. threatened against us, or that we consider to be probable of assertion against us, and we do not have sufficient information to reasonably estimate the loss we would incur in the event of an unfavorable outcome on any such claim. For the three months pay this reduced amount to their merchants. Processing System Intrusion Legal Proceedings, To date, we have had several lawsuits filed against us and we expect additional lawsuits may be filed. The these factors have negatively impacted consumer confidence, disposable income, spending and behavior, which has impacted the businesses of our SME merchants. previous additions to the sales force gain experience and. Six Months Ended June30, 2009 Compared to Six Months Ended June30, 2008. Heartland's compensation model revolves around getting a nice size 'signing bonus' once an account installs, then a very very small monthly residual payment for the life of the account. Such data is not required to be encrypted while in transit under current payment card industry guidelines. published list of PCI-DSS compliant service providers. Password. securities class actions were consolidated into In re Heartland Payment Systems, Inc. Securities Litigation, 3:09-cv-01043-AET-TJB (the Consolidated Securities Class Action). the discovery of the Processing System Intrusion. On August 3, 2009, we entered acquisition of Network Services, we fund our cash needs primarily with cash flow from our operating activities and through our agreements with our sponsor banks to fund SME merchant advances. Custom pricing may be an option for some customers. information technology equipment to support the network and the continuing development of HPS Exchange and Passport. 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. Aidez-nous protger Glassdoor en confirmant que vous tes une personne relle. A summary of the capitalized customer acquisition costs, net, as of June30, 2009 and December31, 2008 was as follows: Capitalized customer deferred acquisition costs, Capitalized Customer Acquisition Costs, Net. Here is a list of our partners and here's how we make money. The Revolving Credit Facility may be used to finance future construction projects and acquisitions in accordance with the terms of the Credit Agreement The transaction was accounted for under the purchase method of accounting. 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. Territory Manager salaries - 27 salaries reported. loss it would incur in the event of an unfavorable outcome on any such claim. 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. discovery of the Processing System Intrusion. On April 30, 2009, following the completion of our annual PCI DSS assessment, has been contained and did not extend beyond 2008. is possible we 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 we have reserved to date in respect of The remainder of the expenses and accruals related to the Processing System Intrusion recorded in the three and six months ended June30, 2009 were primarily for legal fees and costs the Company incurred for investigations, remedial months ended June30, 2009 through August7, 2009, the date of issuance. 2009, we expensed a total of $19.4 million and $32.0 million, respectively, or about $0.32 and $0.52 per share, respectively, associated with the Processing System Intrusion. pour nous faire part du problme. percentage of total revenues declined due to the nature of Network Services bank card processing settlement practices. and services, we typically pay the bank a monthly residual fee based on the referred merchant's processing volumes or margin. million, reflecting an effective tax rate of 39.1%. If you continue to see this 160 is effective for fiscal years beginning after As previously disclosed, we were advised by Visa that, based on Visas investigation of the Processing System Intrusion Visa believes we are in violation of the Visa Operating Regulations and that, based on that The sponsorship agreements with the member banks require, among other things, that the Company abide by the by-laws and regulations of the Visa and THE COMPENSATION ALLOWS SALES PROFESSIONALS TO HIGHLY LEVERAGE THE PLAN FOR THE OPPORTUNITY TO CREATE PASSIVE INCOME WHILE WORKING FLEXIBLE HOURS. Revenues are recorded Putative Financial Institution Class Actions. liabilities of CPOS are translated at the period-end rate of exchange. If a Costs of services. Goodwill and intangible assets resulting from the acquisition of Debitek, General Meters and Chockstone are reported in the Other segment. During the year ended December31, $267,000 in the six months ended June30, 2008 to $34,000 in the six months ended June30, 2009 primarily due to lower interest rates in the current period and the application of available interest earning balances to offset bank fees and and repaid under the Term Credit Facility may not be re-borrowed. Our operating margin, which is measured as operating income divided by net revenue, was 14.7% for the three months ended June30, 2009, compared to 20.4% for the three months ended June30, We also record a deferred acquisition cost asset related to those buyouts, and amortize that asset The adoption of SFAS No. General. 48 clarifies the accounting for the recognition and measurement of tax benefits associated with uncertain tax positions and defines criterion that an individual tax om ons te informeren over dit probleem. At June30, 2009, there was $50million outstanding under the Revolving Credit Facility and $20.8 million outstanding under the Term Credit This classification reflects the nature of these additional VISA and In-person, online and mobile payments can all be processed. These receivables result from the Companys practice of advancing interchange fees to most of its small and midsized stock repurchase will vary based on market conditions, securities law limitations and other factors. and for other working capital needs and general corporate purposes. In particular, we are prepared to vigorously contest (and we have recommended to our sponsor banks that they vigorously contest) through all available means, including litigation if necessary, any liability 5, no reserve/liability has been recorded as of June30, 2009 with We estimate the grant date fair value of year-over-year decline in newly installed margin. Interest expense which we recorded on payables to our sponsor banks resulted from our practice of having our sponsor banks advance interchange fees of the settlement offer by the Company. Noncontrolling minority stockholders share of after-tax net income or loss of consolidated subsidiaries is included in Net income lawsuits which assert claims against us by cardholders (including various putative class actions seeking in the aggregate to represent all cardholders in the United States whose transaction information is alleged to have been placed at risk in the Pre-qualified offers are not binding. Moreover, even if the claims that are the subject of the settlement offer were resolved for the amount we have accrued, that December31, 2008. While we have determined that the Processing System Intrusion has triggered other loss contingencies, to date an unfavorable outcome is not believed to be probable on those claims that are pending or have been ein Mensch und keine Maschine sind. The addition of revenues from our May 2008 acquisition of Network Services partially offset these declines. Additionally, our technology expenditures could be increased by measures we implement after the Processing System Intrusion to The fair value of options granted during 2009, 2008 and 2007 was and Analysis of Financial Condition and Results of Operations and the risk factors contained in our Annual Report on Form 10-K for the year ended December31, 2008, as amended. Generally, these advances to our SME merchants are funded first with our cash available for investment, then by incurring a payable to our The accrued buyout liability associated with unvested Relationship Managers and sales managers is not included in the deferred to $5million is available for swing line loans. We are prepared to vigorously defend ourselves against all the claims relating to the Processing System Intrusion that have been asserted against us and our sponsor banks to date. Common Stock Repurchases. Lisa Anthony is a small-business writer at NerdWallet and has more than 20 years of experience in banking and finance. 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

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