November 27, 2007 09:00 AM Eastern Time

Company alleges unlawful tying arrangements, restraint of trade and unfair trade practices that block competition and inflate card processing costs for restaurants

PRINCETON, N.J.–(BUSINESS WIRE)–Heartland Payment Systems (NYSE: HPY) today filed an antitrust action against MICROS Systems, Inc.; Merchant Link, LLC; and Chase Paymentech, owner of Merchant Link. The suit, filed in United States District Court in New Jersey, alleges the three companies have caused increased processing prices for table-service restaurants through an anti-competitive tying arrangement which violates the Sherman Antitrust Act and New Jersey’s unfair competition laws.

The suit seeks a permanent injunction against the tying arrangements that exist between MICROS and Merchant Link. The tying arrangement forces independent competitors to pay for the use of Merchant Link’s gateway in order to process credit and debit card payments on the MICROS point-of-sale (POS) platform.

“We have repeatedly tried to impress upon MICROS that its exclusive contract with Merchant Link is detrimental to the restaurant industry,” said Robert O. Carr, chairman and chief executive officer of Heartland, a leading provider of credit/debit/prepaid card processing, payroll and payment services. “Merchant Link adds no unique value to the transaction clearing process. It sits between MICROS and the card processing industry, serving as a toll collector and gatekeeper for Paymentech. By creating this illegal scheme, Paymentech makes it nearly impossible for many restaurant owners to use any other card processor. Adding insult to injury, Paymentech has repeatedly charged restaurant owners a higher price than it would in a truly competitive environment.”

In the complaint, Heartland describes how MICROS forces all restaurants using its POS systems to agree to use Merchant Link as the exclusive gateway for credit and debit card processing. Additionally, MICROS forces all card processors to pay a fee to Merchant Link for the privilege of connecting to the MICROS POS and allegedly receives a percentage of the revenues Merchant Link generates. The suit alleges this tying arrangement is illegal and anticompetitive – and artificially inflates card processing costs for all table-service restaurants that utilize MICROS POS systems.

The complaint also documents how Chase Paymentech uses its ownership of Merchant Link – and Merchant Link’s exclusionary agreement with MICROS – to dominate the market and raise the cost of processing for all restaurants using MICROS software. The suit asserts that because it owns Merchant Link, Chase Paymentech can routinely exempt itself from the Merchant Link fees other processors must pay to do business on the MICROS platform. Chase Paymentech, however, still charges restaurateurs prices that are higher than they would be if Merchant Link was not involved and if the competitive playing field was level. In addition, the suit claims the tying arrangement allows Chase Paymentech to collect revenue from every credit and debit card transaction that occurs on a MICROS POS system, even when card transactions are processed by a competitor.

The complaint alleges that when selling its POS systems, MICROS (and its dealers) do not disclose all the costs associated with the Merchant Link tie to restaurateurs. As a result, restaurateurs end up paying inflated costs – with no ability to use alternate vendors.

Mr. Carr concluded, “Heartland wants to re-establish a level competitive playing field in the table-service restaurant industry where we can compete with Paymentech for MICROS business and win based on our superior pricing structure, service infrastructure, and commitment to transaction security. The artificial and illegal barrier to entry that Paymentech has constructed through its shrewd and illegal dealings with MICROS must end. We believe that, when all the documents are uncovered and the facts are disclosed in open court, we will put an end to these egregious practices.”

About Heartland Payment Systems

Heartland Payment Systems, Inc., a NYSE company trading under the symbol HPY, delivers credit/debit/prepaid card processing, payroll and payment solutions to more than 162,000 small and mid-sized businesses nationwide.

Heartland is the founding supporter of The Merchant Bill of Rights, a public advocacy initiative that educates merchants about fair credit and debit card processing practices. For more information, visit www.heartlandpaymentsystems.com and www.MerchantBillOfRights.com.

Forward-looking Statements

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