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VeriFone Holdings Inc. is accusing Heartland Payment Systems Inc. of contradicting itself over support the payment processor says it can provide its merchants who use VeriFone point-of-sale terminals. VeriFone says it will stop providing Heartland with terminal support at the end of the year, though Heartland says it still will be able to support its merchants' VeriFone terminals (CardLine, 11/4). The two companies have sued each other, with Heartland claiming that VeriFone is engaging in unfair trade practices and VeriFone claiming that a still-in-development terminal from Heartland infringes on one of its patents (CardLine, 10/22). In an announcement yesterday, VeriFone cited a paragraph in Heartland's Sept. 16 complaint against the terminal maker that appears to contradict Heartland's pledge. In the complaint, VeriFone points out, Heartland says it "provides troubleshooting and systems-integration support for its merchants, which requires assistance from VeriFone. If Heartland were to be cut off from any support, its customers would be forced to reach out directly to VeriFone, which would result in a reduction of services to the customers and an erosion of Heartland's relationship with those customers." San Jose, Calif.-based VeriFone says some Heartland merchants have responded to VeriFone's offer to work directly with the terminal maker in 2010. VeriFone estimates that 75% of Heartland's retail, restaurant and petroleum merchants use its equipment. Princeton, N.J.-based Heartland says it has 250,000 "business locations," but the company does not specify whether that includes merchants with multiple locations. A Heartland spokesperson tells CardLine sister publication ISO&Agent Weekly the processor has no "further comment at this time."
