Consumer complaint received 2025-08-15 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Managing an account — Deposits and withdrawals
Company: HEARTLAND PAYMENT SYSTEMS INC
State: FL

Complaint narrative:
On XX/XX/year>, our XXXX  practice ( XXXX XXXX XXXX XXXX and XXXX ) experienced payment failures at our XXXX location. Upon contacting XXXX  Payments, we were informed that our account had been deactivated due to fraudulent transactions. XXXX XXXX opened XXXXXXXX XXXX XXXXXXXX, assigning XXXX XXXX from XXXX XXXX. She provided screenshots showing fraudulent charges and informed us we might see debit attempts to reverse the fraud saleseach in the amount of XXXX XXXXand instructed us to reject the second debit attempt. 

Within days, our XXXX location was also hit with fraud, even though XXXX XXXX was aware of the earlier XXXX fraud but failed to freeze the XXXX account. XXXX confirmed large amounts in fraudulent refunds and sales, but despite stating credits were sent to our bank, our bank confirmed no such credits were received. Both merchant accounts were deactivated, preventing us from processing credit card payments. 

Independent IT investigations on XX/XX/XXXX and XX/XX/year>, confirmed no compromise on our systems. XXXX XXXX own XXXX XXXXXXXX later confirmed the fraud did not originate from our systems but from a breach at XXXX of their third-party technology vendors, which had inadvertently exposed our API key. 

Despite this, on XX/XX/scrub>XXXX XXXX XXXX  our account was placed into collections because we stopped fraudulent debits from being withdrawn from our bank. We also received an FBI file number for the fraud report ( XXXX XXXXXXXX ). Over the months, we repeatedly sought reconciliation of transactions and return of our withheld funds, but discrepancies persisted between the figures XXXX provided and actual bank records. 

As of XX/XX/year>, the XXXX XXXX XXXX has been withholding {$46000.00} in our merchant reserve and has refused to release it, citing a contested fraudulent transaction that XXXX  own XXXX acknowledged was caused by their vendors breachnot by us. We also received a letter stating our account is in collections due to this fraudulent activity. 

I have spoken with XXXX XXXX  multiple times regarding the {$46000.00} ( Case # XXXX ) and have only been told the matter is escalated, with no resolution. On XX/XX/year>, XXXX XXXX of XXXX XXXX stated a goodwill adjustment had been processed to our accountwhich is clearly not the case, as we have yet to receive the funds. XXXX XXXX  also told us that, due to an XXXX code, our bank would need to input specific codes they provided ( XXXX and XXXX ). However, when I spoke to XXXX XXXX XXXX XXXX  XXXX ), she confirmed there was nothing the bank could do with those codes. 

During this time, we were also charged merchant fees on the fraudulent transactions. We have repeatedly requested a full reconciliation and refund of all funds and fees related to this fraud, but XXXX XXXX has been unresponsive or has referred us back and forth between departments without resolution. 

We are now stuck in an endless loop where Collections refuses to release our funds because they believe we are responsible for a fraudulent chargeback, even though XXXX XXXX has confirmed in writing that the fraud originated on their end. This withholding of {$46000.00} is severely impacting our cash flow and business operations. 

We are requesting the CFPBs assistance in compelling XXXX XXXX to : Release the withheld {$46000.00}. 

Remove any collections status from our account. 

Refund all merchant fees tied to the fraudulent transactions. 

Provide a clear, reconciled accounting of all debits, credits, chargebacks, and goodwill adjustments promised.

Company response to consumer: Closed with explanation