Shift4 Credit Card Processing Overview


Credit Card Processors are the payment networks that ferry billions of transactions between merchants, processors, and banks. A credit card transaction, from start to finish, is a complicated process, but it can be simplified by breaking down a transaction into three separate processes (Authorization > Settlement > Funding). This article will cover those processes and how they are used to let Shift4Shop utilize the Shift4 Payments processing.


When a customer enters their credit card number on your ecommerce Shift4Shop website, an authorization is requested from the issuing bank. The authorization is performed to validate that the cardholder has the necessary funds for the transaction and confirm it has not been flagged as fraudulent or stolen. If the transaction is authorized, the merchant will receive an approval or authorization code on their device. If denied, the merchant will receive a denial reason on their device.


The settlement, or batching, is the process of a merchant processing all authorized credit card transactions for the day after the close of business or at a time determined by the processor. This is done manually by the merchant or automatically dependent upon the processor.


Funding is the point at which funds are electronically transferred from the issuing bank to the acquiring bank, and then deposited by the acquiring bank into the merchant’s bank account. Shift4Shop Merchants are enabled to begin processing instantly once their registration is completed online at However, their funds are not released until the merchant finishes their merchant application and the account is approved.

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