Heartland Payment Systems of Princeton, NJ, has filed a federal anti-trust lawsuit against rival Chase Paymentech, a Paymentech subsidiary and a partnering-transaction vendor for allegedly using “illegal” tying agreements that undercut Heartland’s ability to match fees for restaurant transactions.
In the suit filed November 26, Heartland claims that MICROS Systems, a prominent point-of-sale payment platform for table-serve and quick-serve restaurants, requires its clients to use Paymentech-owned Merchant Link as an “exclusive” gateway for card processing, and tacks on a four cents to six-cents fee that card processors must absorb. But that fee is routinely waived for Chase Paymentech, charges Heartland, meaning “they can undercut Heartland while still charging way too much to the restaurant. ...That’s the illegal tying arrangement,” says Charles Kellenbach, general counsel for Heartland. MICROS, which has yet to be served with the lawsuit, denied that any arrangements exist with its restaurant clients.
“There’s no forcing any technology on any restaurateur,” says Thomas Patz, evp and general counsel of Columbia, MD-based MICROS. “We have hundreds and thousands that don’t go through [Merchant Link].” In an e-mail statement, a Chase Paymentech and Merchant Link spokesperson says the "two companies believe the lawsuit is without merit. Of course, the companies will vigorously defend the lawsuit.
Chase Paymentech and Merchant Link, LLC go to great lengths to ensure that they operate at all times with the highest of ethical standards and in full compliance with all applicable laws and regulations." The lawsuit seeks an injunction against the Merchant Link/MICROS tying arrangement, and damages for Heartland’s alleged loss of business with MICROS client restaurants.
