In addition to the card network, the payment platform, and the acquiring bank, the last essential element that makes the payment process possible is the issuing bank. 
The definitions of the card network and <a href="https://www.shift4.com/blog/why-you-need-an-acquirer-to-process-payments" target="_blank" rel="noopener">the acquiring bank</a> might be familiar to merchants, but understanding the role the issuing bank plays isn&#8217;t as obvious and needs some explanation.
So, what is an issuing bank and how do we define its role in the payment process?
<h2>What Is an Issuing Bank? </h2>
An issuing bank (also called an issuer) is one of the key components in the <a href="https://www.shift4.com/online-payments" target="_blank" rel="noopener">online payment</a> process. In short, it is a financial institution providing customers with credit and debit cards. 
The cards are issued to customers on behalf of card networks like <a href="http://visa.us" target="_blank" rel="noopener">Visa</a>, <a href="https://www.mastercard.us/en-us.html" target="_blank" rel="noopener">Mastercard</a>, <a href="https://www.discover.com/" target="_blank" rel="noopener">Discover</a>, and <a href="https://www.americanexpress.com/" target="_blank" rel="noopener">American Express</a>.
Although the total number of issuers worldwide exceeds 100,000, there are only around 4 or 5 banks that play a significant role in a particular country, wielding a prevailing market share. 
For example, in the United States, the main issuing banks are: 
<ul>
<li style="font-weight: 400;" aria-level="1"><a href="https://en.wikipedia.org/wiki/JPMorgan_Chase" target="_blank" rel="noopener">JPMorgan Chase</a> </li>
<li style="font-weight: 400;" aria-level="1"><a href="https://en.wikipedia.org/wiki/Capital_One" target="_blank" rel="noopener">Capital One</a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://en.wikipedia.org/wiki/Citigroup" target="_blank" rel="noopener">Citigroup</a> </li>
<li style="font-weight: 400;" aria-level="1"><a href="https://www.discover.com/" target="_blank" rel="noopener">Discover</a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://en.wikipedia.org/wiki/Bank_of_America" target="_blank" rel="noopener">Bank of America</a> </li>
</ul>
However, from a global perspective, the Big Four Banks term refers to the following: 
<ul>
<li style="font-weight: 400;" aria-level="1"><a href="https://en.wikipedia.org/wiki/Bank_of_England" target="_blank" rel="noopener">The Bank of England</a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://en.wikipedia.org/wiki/Federal_Reserve" target="_blank" rel="noopener">The Federal Reserve</a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://en.wikipedia.org/wiki/Bank_of_Japan" target="_blank" rel="noopener">The Bank of Japan</a></li>
<li style="font-weight: 400;" aria-level="1"><a href="https://en.wikipedia.org/wiki/European_Central_Bank" target="_blank" rel="noopener">The European Central Bank</a></li>
</ul>
Every time a customer purchases goods or services and pays with their credit or debit card, the issuing bank is involved.
<h2>The Issuing Bank’s Key Responsibilities</h2>
From the merchant&#8217;s perspective, the issuing bank sits at the opposite end of the payment transaction. 
Once the customer makes the purchase (thus initiating the transaction), the information from the merchant goes through an acquiring bank, via the card network, to the issuer.
The latter is then responsible for authorizing the transaction. In other words, it is liable for the cardholder&#8217;s ability to pay off the debt accumulated by using the credit card or line of credit.
The authorization process begins with ensuring that the customer has the available credit or funds required for the purchase. It also includes the account details verification phase and subjecting the transaction to its own fraud and risk rules.
Aside from being in charge of the customer&#8217;s financial information, the issuers provide necessary card maintenance, including card renewals, limit-setting, suspensions, blockages, and card activations. 
They also bear responsibility for paying the debts incurred by their cardholders. In case of a non-payment, following the card network&#8217;s rules, the issuer and the acquirer share the credit liability. In order to manage the risk of the cardholder defaulting on their payments, the issuers collect a fee for every card transaction.  
In brief, the issuing banks handle everything that&#8217;s customer-related.
&nbsp;
<img decoding="async" loading="lazy" class="aligncenter size-large wp-image-29081" src="https://assets.shift4.com/wp-content/uploads/2023/02/issuing-bank-customer-using-a-credit-card-Shift4--1024x576.png" alt="issuing bank customer using a credit card Shift4" width="750" height="422" srcset="https://assets.shift4.com/wp-content/uploads/2023/02/issuing-bank-customer-using-a-credit-card-Shift4--1024x576.png 1024w, https://assets.shift4.com/wp-content/uploads/2023/02/issuing-bank-customer-using-a-credit-card-Shift4--300x169.png 300w, https://assets.shift4.com/wp-content/uploads/2023/02/issuing-bank-customer-using-a-credit-card-Shift4--768x432.png 768w, https://assets.shift4.com/wp-content/uploads/2023/02/issuing-bank-customer-using-a-credit-card-Shift4--1536x864.png 1536w, https://assets.shift4.com/wp-content/uploads/2023/02/issuing-bank-customer-using-a-credit-card-Shift4--1568x882.png 1568w, https://assets.shift4.com/wp-content/uploads/2023/02/issuing-bank-customer-using-a-credit-card-Shift4-.png 1601w" sizes="(max-width: 750px) 100vw, 750px" />
&nbsp;
<h2>The Issuer’s Role in the Payment Process</h2>
To make a long story short, the issuer’s role in the payment process is to authorize the transaction.
The transaction starts when the cardholder uses their payment card for a purchase. Once the customer submits the transaction, the payment processor forwards the <a href="https://dev.shift4.com/resources/payment-tokenization-explained" target="_blank" rel="noopener">tokenized transaction</a> request to the issuing bank. 
Then, depending on the data sent by the issuer to the card network, the transaction will be accepted or rejected. Assuming the customer&#8217;s account covers the costs of the purchase, the issuing bank sends the approval to the acquiring bank. The purchase is marked as completed in the aftermath and the issuer transfers the funds to the merchant&#8217;s acquiring bank.
In conclusion, the issuing bank&#8217;s role is to serve as an intermediary between the acquiring bank or card network and the cardholder. It is possible due to the contracts with the card owners on the account terms and repayment of credit card transactions.
In addition to the payment acceptance process, dealing with <a href="https://dev.shift4.com/resources/chargebacks-in-a-nutshell-a-guide-for-merchants" target="_blank" rel="noopener">chargebacks</a> and disputes also falls within the scope of the issuing bank&#8217;s role. Whenever a customer disputes a transaction, the issuer deals with the dispute.
Note that it&#8217;s not unusual for the banks to operate as both acquiring and issuing entities.
<h2>Key Takeaways</h2>
<ul>
<li style="font-weight: 400;" aria-level="1">Any bank issuing debit or credit cards is considered an issuing bank or issuer.</li>
<li style="font-weight: 400;" aria-level="1">The issuer&#8217;s role is to send money to acquiring banks during a transaction.</li>
<li style="font-weight: 400;" aria-level="1">Card brands don&#8217;t issue their cards directly to customers. They do it via the issuing banks, taking responsibility for the potential risk related to a cardholder&#8217;s credit balance.</li>
<li style="font-weight: 400;" aria-level="1">When the payment is made, the issuer receives and authorizes payment tokens. It determines whether the customer transaction will be accepted or rejected.</li>
<li style="font-weight: 400;" aria-level="1">The issuing bank represents customers and their interests, whereas merchants are backed up by their acquiring bank, managing their merchant account and processing card transactions.</li>
</ul>

issuing bank front of a bank building Shift4

What is an Issuing Bank? Get the Scoop from the Experts

When you accept a credit card payment, there are many components that work together to process this transaction. Shift4&#8217;s end-to-end payment solution is unique in that it handles all of these steps behind the scenes to deliver a <a href="https://www.shift4.com/unified-commerce" target="_blank" rel="noopener">seamless commerce experience</a>. One component involved in this process is the role of acquiring bank. 
The acquirer — also known as a credit card bank, acquiring bank, or merchant bank — is a bank or financial institution licensed as a member of a card association (such as Visa or Mastercard) and is responsible for opening and maintaining the merchant&#8217;s bank account. The acquirer can also act as a settlement bank, facilitating merchant payment communication and settlement.
<h2>What Is the Role of the Acquirer in the Payment Process?</h2>
Even though transactions only take a few seconds, there is a lot going on under the hood before the purchase is complete. First, the card information is encrypted by the payment gateway and is then sent for approval. The acquirer’s job comes toward the end of this process. They authorize or reject card transactions as they come in and connect to the issuing bank on the merchant’s behalf during the payment process. Once a transaction is approved, the funds are transferred to the merchant’s account.<img decoding="async" loading="lazy" class="alignnone size-full wp-image-29047" src="https://assets.shift4.com/wp-content/uploads/2022/12/Security-Trifecta-Process-Flow-2-01.png" alt="" width="2078" height="597" srcset="https://assets.shift4.com/wp-content/uploads/2022/12/Security-Trifecta-Process-Flow-2-01.png 2078w, https://assets.shift4.com/wp-content/uploads/2022/12/Security-Trifecta-Process-Flow-2-01-300x86.png 300w, https://assets.shift4.com/wp-content/uploads/2022/12/Security-Trifecta-Process-Flow-2-01-1024x294.png 1024w, https://assets.shift4.com/wp-content/uploads/2022/12/Security-Trifecta-Process-Flow-2-01-768x221.png 768w, https://assets.shift4.com/wp-content/uploads/2022/12/Security-Trifecta-Process-Flow-2-01-1536x441.png 1536w, https://assets.shift4.com/wp-content/uploads/2022/12/Security-Trifecta-Process-Flow-2-01-2048x588.png 2048w, https://assets.shift4.com/wp-content/uploads/2022/12/Security-Trifecta-Process-Flow-2-01-1568x450.png 1568w" sizes="(max-width: 2078px) 100vw, 2078px" />
After getting the card information from the payment gateway, an acquirer is responsible for the following:
<ul>
<li style="font-weight: 400;" aria-level="1">Authorization: Asking the issuer whether the card is valid and whether there are sufficient funds in the account to complete the transaction.</li>
<li>Authentication: A voluntary verification of the cardholder&#8217;s identity after entering the card details during purchase. Typically, 3D Secure is used for authentication.</li>
</ul>
Your choice of acquirer should be guided by their support for your business model. Additional factors to consider include the following:
<ul>
<li style="font-weight: 400;" aria-level="1">The types of cards the acquirer supports: Ensure that they have all the card networks you accept in their portfolio. Also, ask for other payment methods if you need them.</li>
<li style="font-weight: 400;" aria-level="1">(For international businesses) Locations and currencies the acquirer supports: Does the list include the country in which your company is registered? Check that the acquirer approves any and all currencies you intend to accept on your website.</li>
<li style="font-weight: 400;" aria-level="1">The average transaction amount: This will help you calculate how much you’ll be charged for each transaction. Note that an acquirer may charge a merchant various fees, which will be specified in their agreement. Fees are charged to cover the costs associated with network processing and merchant account-related services.</li>
<li style="font-weight: 400;" aria-level="1">The average number of transactions: Speaking of pricing, double-check the rates to ensure that you won&#8217;t have to pay extra monthly fees, which can be costly, especially in the early stages. Furthermore, you can negotiate rates if you own a company that handles numerous daily transactions.</li>
<li style="font-weight: 400;" aria-level="1">Responsive support: You need to be assured that any payment issue will be quickly addressed.</li>
<li style="font-weight: 400;" aria-level="1">Recurring payments: If you’d like to offer subscriptions, your acquirer needs to support recurring payments.</li>
</ul>
<h2>Simplifying the Process with End-to-End Payments</h2>
As you can see, merchants have to navigate overwhelming complexity before they can accept a single payment. Fortunately, <a href="https://www.shift4.com/" target="_blank" rel="noopener">Shift4</a> offers a unique end-to-end payment solution that delivers all the connections to the entire transaction process. This simplified approach has numerous benefits, including lower total cost, faster implementation, streamlined support, and much more. Our all-in-one ecosystem includes:
<ul>
<li>Secure payment gateway with tokenization and PCI-validated point-to-point encryption</li>
<li>P2PE-enabled EMV devices with lifetime free replacements</li>
<li>500+ POS, PMS, and eCommerce integrations</li>
<li>Processor connection</li>
<li>Future-proof updates with the latest technologies and trends</li>
<li>24/7 customer support for all your payments needs</li>
</ul>
Want to learn more? Contact us today at <a href="mailto:sales@shift4.com">sales@shift4.com</a> or at 888.276.2108.

acquiring bank Shift4-digital security collage

Why You Need an Acquirer to Process Payments

Our VenueNext technology delivers an end-to-end sports and entertainment solution that has allowed dozens of professional sports teams to seamlessly transition their commerce to a mobile-focused fan experience. When the <a href="https://www.mlb.com/rays" target="_blank" rel="noopener">Tampa Bay Rays</a> implemented the solution, they quickly saw significant benefits to their operations and sales – while improving the gameday experience for their fans.
<h2>If You Simplify It, They Will Come</h2>
One of the major advantages of using VenueNext is the simplicity that it brings to the fan experience. As part of the implementation, the Rays converted their six main concession stands in Tropicana Field to utilize VenueNext’s self-service kiosks and mobile ordering solutions. This allowed the team to introduce their fans to a game-changing new stadium experience centered around a new mobile app where they could order and receive food and drinks with express pick-up.
<img decoding="async" loading="lazy" class="aligncenter size-large wp-image-29003" src="https://assets.shift4.com/wp-content/uploads/2022/12/Tampa-Bay-Rays-app_Shift4-payment-technology-1024x523.png" alt="Shift4 Case Study Tampa Bay Rays" width="750" height="383" srcset="https://assets.shift4.com/wp-content/uploads/2022/12/Tampa-Bay-Rays-app_Shift4-payment-technology-1024x523.png 1024w, https://assets.shift4.com/wp-content/uploads/2022/12/Tampa-Bay-Rays-app_Shift4-payment-technology-300x153.png 300w, https://assets.shift4.com/wp-content/uploads/2022/12/Tampa-Bay-Rays-app_Shift4-payment-technology-768x392.png 768w, https://assets.shift4.com/wp-content/uploads/2022/12/Tampa-Bay-Rays-app_Shift4-payment-technology.png 1405w" sizes="(max-width: 750px) 100vw, 750px" />
A mobile-first approach allows guests to quickly order from their smartphone — without standing in a line. This enabled Rays fans to quickly grab a drink or a bite to eat and get back to the action.
And the results were undeniable. In just one season after switching to VenueNext, the Rays saw increased numbers across the board. More fans were willing to place orders because it was as quick and easy as possible and the team became one of the leading MLB stadiums in mobile orders.
Some of the key highlights include:
<ul>
<li>44% increase in F&amp;B per cap vs. the previous full season</li>
<li>31.2% increase in orders at 6 high-traffic concession stands</li>
<li>5.6% increase in check average</li>
<li>3rd highest in MLB for mobile orders volume</li>
<li>Nearly a third of fans who placed a mobile order placed more than one during the season</li>
<li>9.3% of customers who placed a mobile order were new email addresses to the Rays CRM</li>
<li>65% of season ticket members used Rays Pay wallet for mobile ordering or rich checkout</li>
</ul>
<blockquote>&#8220;Adopting VenueNext&#8217;s all-in-one solution has streamlined operations and provided a seamless ordering experience for our fans,&#8221; said Rays Chief Business Officer Bill Walsh. &#8220;We look forward to working with our partners at VenueNext and Levy to continue to enhance the fan experience.&#8221;</blockquote>
In addition to the increase in sales, the change improved operations as well. For example, prior to the switch to VenueNext, the Rays employed several different POS systems to facilitate their in-person orders, which was the only option to fans at the time. Today, the Rays are able to get more features out of just one integrated solution than they did with several vendors – simplifying training and support for their employees.
“It’s been great to partner with the Rays as they strive to become the leader in delivering a next-gen fan experience at Tropicana Field,&#8221; said Dustin Alpert, Shift4&#8217;s Head of Sports &amp; Entertainment.
To learn more about VenueNext, Shift4’s sports &amp; entertainment commerce offering, visit <a href="https://www.shift4.com/sports-entertainment" target="_blank" rel="noopener">www.shift4.com/sports-entertainment</a>.

Shift4 Case Study Tampa Bay Rays crowd image

A Mobile-Focused Fan Experience Fuels Growth for the Tampa Bay Rays

Shift4 and VenueNext have made it their mission to transform the way <a href="https://www.shift4.com/sports-entertainment" target="_blank" rel="noopener">sports and entertainment venues</a> approach the gameday experience — and the payments involved. Their ecosystem of mobile-first technologies streamline commerce across the entire stadium, arena, or other entertainment venues, including:
<ul>
<li>Point Of Sale: Accept mobile and contactless payments with quick-service and full-service point-of-sale solutions that are seamless for patrons and operators.</li>
<li>Mobile Ordering: Minimize wait times with mobile ordering and designated pick-up areas. In-seat delivery will also reduce lines at concessions and retail stands.</li>
<li>Mobile Wallet: A mobile wallet can be branded for your team or venue, allow fans to redeem rewards, and incentivize mobile adoption with discounts and cashback offerings.</li>
</ul>
<h3>The Experience Marketplace Adds An Instant Value To Your Venue</h3>
As a part of their unified commerce offering, <a href="https://www.shift4.com/" target="_blank" rel="noopener">Shift4</a> and VenueNext have extended the mobile experience by providing teams a way to connect with their fans: the Experience Marketplace.
With this feature, professional and college sports organizations can tap into the connection they already have with their fans and create items they can purchase, which can include autograph signings, access to press conferences, tours, mascot visits, and much more.
&nbsp;
<img decoding="async" loading="lazy" class="aligncenter size-full wp-image-29016" src="https://assets.shift4.com/wp-content/uploads/2022/12/gators_01.png" alt="Shift4 customer case study the Florida Gators" width="768" height="432" srcset="https://assets.shift4.com/wp-content/uploads/2022/12/gators_01.png 768w, https://assets.shift4.com/wp-content/uploads/2022/12/gators_01-300x169.png 300w" sizes="(max-width: 768px) 100vw, 768px" />
&nbsp;
Experience Marketplace allows teams and venues to:
<ul>
<li>Monetize every aspect of venues and events through low-cost-of-goods experiences</li>
<li>Create membership value by restricting the sale of select experiences to members or member-level segments</li>
<li>Collect relevant information for each experience to decorate CRM profiles</li>
</ul>
<h3>Florida Gators Took Full Advantage of The Experience Marketplace</h3>
The <a href="https://www.ufl.edu/" target="_blank" rel="noopener">University of Florida</a> uses the Experience Marketplace for their football program, naming them “Swamp Moments” after the nickname for their <a href="https://floridagators.com/sports/2020/4/4/ben-hill-griffin-stadium.aspx" target="_blank" rel="noopener">Ben Hill Griffin Stadium</a>. From there, they were able to create and offer a wide range of items and experiences. These include commemorative tickets for the season or for specific games, access to exclusive areas or events, and more. The most popular “Swamp Moments” for the University were:
<ul>
<li>Pre-Game Experience With On-Field Passes</li>
<li>Share a Special Message on the Videoboard</li>
<li>Play Catch on the Field With a Friend After the Game</li>
<li>Exclusive Group Meet With Steve Spurrier</li>
<li>Commemorative Tickets</li>
</ul>
&nbsp;
<h3 style="font-family: -apple-system, 'system-ui', 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif; font-weight: var(--heading--font-weight); font-size: var(--heading--font-size-h3); letter-spacing: normal; line-height: var(--heading--line-height-h3);"><img decoding="async" loading="lazy" class="size-medium wp-image-28977 aligncenter" style="color: var(--global--color-primary); font-family: var(--global--font-secondary); font-size: var(--global--font-size-base);" src="https://assets.shift4.com/wp-content/uploads/2022/12/gators-marketplace-300x261.webp" alt="" width="300" height="261" srcset="https://assets.shift4.com/wp-content/uploads/2022/12/gators-marketplace-300x261.webp 300w, https://assets.shift4.com/wp-content/uploads/2022/12/gators-marketplace.webp 700w" sizes="(max-width: 300px) 100vw, 300px" /></h3>
VenueNext’s Experience Marketplace allowed the Gators to add nearly $100,000 of additional revenue from the Swamp Moments program, proving that there is unquestionably a high demand from fans to extend their relationship with the team beyond just spectators.
<h3>Create Lasting Memories</h3>
And for the fans, these are more than just ordinary items they purchased. Each experience represents an unforgettable moment in their life as a Florida Gator — and sometimes their very first moment.
The Fishon family purchased on-field pre-game passes for Florida’s home game against Samford University. The game was a special one for them, as their young son, Tyler, had never been to the stadium before. They got to give him a front-row view to the scene of the action and likely made him a fan for life. To top it off, Florida won the game 70-52.
&nbsp;
<img decoding="async" loading="lazy" class="aligncenter size-full wp-image-29018" src="https://assets.shift4.com/wp-content/uploads/2022/12/gators_03.png" alt="Shift4 customer case study the Florida Gators" width="768" height="432" srcset="https://assets.shift4.com/wp-content/uploads/2022/12/gators_03.png 768w, https://assets.shift4.com/wp-content/uploads/2022/12/gators_03-300x169.png 300w" sizes="(max-width: 768px) 100vw, 768px" />
&nbsp;
<blockquote>
&#8220;I had no idea the feeling of a Swamp Moment until stepping foot on the field with my 3 year old for his first Gator game. Watching his face along with mine light up and feel the rush like being at The Swamp for the first time was the most memorable experience this New York Gator Nation fan will have.&#8221; 
</blockquote>
— Eric Fishon, Florida Gators Fan

Florida Gators: Giving Fans an Experience They’ll Never Forget

It&#8217;s not just retailers paving the way for contactless payments anymore. From travel and hospitality to casinos and gaming, nearly every industry is focusing on touchless commerce solutions. Let&#8217;s look at how we got here and why contactless payment technology is becoming table stakes for these industries rather than optional features.



<h2 id="h-the-surprising-history-of-contactless-payments">The Surprising History of Contactless Payments</h2>



How long do you think contactless payments have been around? Since the onset of the pandemic? Five years? A decade? Wrong!



<a href="https://www.investopedia.com/terms/c/contactless-payment.asp" target="_blank" rel="noreferrer noopener">This fast-growing technology</a> first appeared in the U.S. in 1997 when Mobil offered Speedpass — an electronic system that allowed customers to pay for gas with a special key fob — at participating gas stations. At the same time, Coca-Cola in Helsinki rolled out a vending machine that allowed users to pay for their beverage with an <a href="https://techbullion.com/mobile-wallet-origin-history-financial-technology/" target="_blank" rel="noreferrer noopener">SMS message via a mobile account</a> linked to a user&#8217;s device.



Today, contactless payments are used by thousands of national chains, small businesses, banks, and credit card companies worldwide. And while the widespread adoption was inevitable, the momentum it gained was accelerated by the COVID-19 pandemic. 



For instance, the pre-pandemic U.S. mobile and contactless payment adoption rate was about 10% —far below global levels. By contrast, during the first quarter of 2020, Mastercard reported a <a href="https://www.cnbc.com/2020/04/29/mastercard-sees-40percent-jump-in-contactless-payments-due-to-coronavirus.html" target="_blank" rel="noreferrer noopener">40% increase in contactless transactions</a>. Additionally, <a href="https://www.cnbc.com/select/mastercard-survey-contactless-payments/" target="_blank" rel="noreferrer noopener">according to consumer polling by Mastercard</a>, 51% of U.S. consumers are using cash less frequently (or not at all) since the pandemic began, opting instead to use tap-and-go payment methods and mobile wallets such as Apple Pay, Google Pay, and Samsung Pay.



It’s pretty clear that contactless payments is a technology that’s here to stay, so let’s take a closer look at how this next-gen payment trend works.

&nbsp;

<h2>Contactless Payments: Secure, Efficient, and Effortless</h2>



<a href="https://usa.visa.com/pay-with-visa/contactless-payments/contactless-payments.html" target="_blank" rel="noreferrer noopener">According to Visa</a>, a contactless payment is a transaction made by tapping a contactless card or payment-enabled mobile or wearable device over a contactless-enabled payment terminal. 



This type of touchless technology is a secure way to purchase products or services using Radio Frequency Identification (RFID) or Near-Field Communication (NFC) technology. It is also referred to as “tap-and-go” by some banks and retailers for its swift communication that doesn&#8217;t require the consumer to enter a PIN or insert an EMV chip card. Yet, it relies on the same type of <a href="https://www.shift4.com/secure-technology" target="_blank" rel="noreferrer noopener">secure payment technology</a>: tokenization. 



As the <a href="https://www.prnewswire.com/news-releases/shift4-payments-inventor-of-tokenization-reaches-new-milestone-of-8-billion-tokenized-transactions-300637842.html#" target="_blank" rel="noreferrer noopener">trailblazer of payment tokenization</a>, this is something that we know a thing or two about. Simply put, tokenization is the process of replacing sensitive data — such as a consumer&#8217;s Personal Account Number (PAN) — into a random string of characters called a token. The token has no meaningful value if the merchant’s system is breached by data thieves. The actual cardholder data is secured off-site — often via <a href="https://www.cisco.com/c/en/us/products/security/encryption-explained.html" target="_blank" rel="noreferrer noopener">encryption</a> — in  a token vault database, which stores the relationship between the sensitive value and the randomized token.



Knowing how secure and efficient contactless payments are, it’s easy to understand why consumers have come to expect touch-free payments anywhere they do business.

&nbsp;

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" class="wp-image-28894" src="https://assets.shift4.com/wp-content/uploads/2022/10/contactless-payments_.woman-using-contactless-payment-to-pay-at-a-cafe_Shift4webp-1024x576.webp" alt="contactless payments_.woman using contactless payment to pay at a cafe_Shift4" srcset="https://assets.shift4.com/wp-content/uploads/2022/10/contactless-payments_.woman-using-contactless-payment-to-pay-at-a-cafe_Shift4webp-1024x576.webp 1024w, https://assets.shift4.com/wp-content/uploads/2022/10/contactless-payments_.woman-using-contactless-payment-to-pay-at-a-cafe_Shift4webp-300x169.webp 300w, https://assets.shift4.com/wp-content/uploads/2022/10/contactless-payments_.woman-using-contactless-payment-to-pay-at-a-cafe_Shift4webp-768x432.webp 768w, https://assets.shift4.com/wp-content/uploads/2022/10/contactless-payments_.woman-using-contactless-payment-to-pay-at-a-cafe_Shift4webp-1536x864.webp 1536w, https://assets.shift4.com/wp-content/uploads/2022/10/contactless-payments_.woman-using-contactless-payment-to-pay-at-a-cafe_Shift4webp-1568x882.webp 1568w, https://assets.shift4.com/wp-content/uploads/2022/10/contactless-payments_.woman-using-contactless-payment-to-pay-at-a-cafe_Shift4webp.webp 1601w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>

&nbsp;

<h2>Contactless Payments Are Everywhere You Are</h2>



Five or 10 years ago, contactless payment options were only seen at large retailers or hip hospitality locales —  even then, it was a rare sighting. Today, this consumer option is readily available for every industry and merchants of all sizes — including small business mom-and-pop shops. 



Here&#8217;s a look at how various industries use touch-free payment methods to enhance the overall consumer experience.



<h3>Travel &amp; Hospitality</h3>



<a href="https://www.shift4.com/hospitality" target="_blank" rel="noreferrer noopener">Hotels can leverage contactless payments</a> during check-in and check-out, and guests can often simply let the hotel know they’ve arrived via an app. A mobile room key can be generated and the entire process can be completed without any face-to-face contact.



And don’t forget about getting to the hotel. Many airlines, including Allegiant, are becoming completely cashless and rolling out contactless payment solutions for everything from ticket sales to in-flight purchases.



<h3>Food &amp; Beverage </h3>



Contactless payments are being leveraged by <a href="https://www.shift4.com/food-beverage" target="_blank" rel="noreferrer noopener">restaurants and bars</a> as a way to help guests and staff stay (and feel) safe. By implementing this technology, customers can pay without handing their card over, resulting in a faster and more secure transaction compared to traditional methods. These touch-free payments can include contactless terminals as well as <a href="https://www.shift4.com/qr-code-solutions" target="_blank" rel="noreferrer noopener">QR code ordering and payments</a>.



<h3>Sports &amp; Entertainment </h3>



Even large venues are getting in on the contactless strategy to create a better experience for fans. After all, if you’re attending a sporting event or concert for a few hours, you don’t want to spend half your time waiting in line for a beverage and missing all the action. 



Chicago’s United Center, home to the NBA’s Bulls and the NHL’s Blackhawks, understands this pain point and <a href="https://www.shift4.com/news/united-center" target="_blank" rel="noreferrer noopener">recently implemented contactless payment solutions</a> as part of their mission to enhance the in-venue fan experience. Transactions for everything from concessions, premiums, suites, and retail has been streamlined to help provide fans with a consistent, seamless interaction.



<h3>Gaming </h3>



Like any industry, gaming needs to embrace contactless payments if it wants to continue to grow. <a href="https://www.shift4.com/casinos-and-gaming" target="_blank" rel="noreferrer noopener">Enabling payment choices on the casino floor</a> does more than provide consumer flexibility. It also provides an unmatched and secure online gaming and sports-betting platform via an advanced payment platform, including live virtual casino floor games, daily and weekly poker tournaments, and a sportsbook interface.



<h3>Retail </h3>



<a href="https://www.shift4.com/retail" target="_blank" rel="noreferrer noopener">Contactless payments are omnipresent in retail</a>. Leveraging this technology allows retailers to focus on <a href="https://www.cnbc.com/2020/04/27/coronavirus-curbside-pickup-at-retail-stores-surges-208percent.html" target="_blank" rel="noreferrer noopener">curbside pickup</a>, which increased over 200% during the COVID-19 pandemic. Contactless payments reduce transaction time, shorten lines, and bring peace of mind to shoppers and employees wanting to avoid direct contact whenever possible.



<h2>Contactless Payments Are the Future</h2>



These contactless payment methods aren’t just a passing fad — they have proven to be a technology that benefits businesses and consumers alike. And while we may never become a fully fledged, cashless society, we are certainly inching closer every day.

&nbsp;

contactless payments_group of people checking nto hotel using contactless payment device

See How Contactless Payment Tech is Becoming Mainstream in Every Industry

In Berlin, Ohio (also known as the heart of Ohio Amish Country) there is a cozy yet luxurious hotel that lives in a unique tourist destination. The <a href="https://berlinencorehotel.com/" target="_blank" rel="noopener">Berlin Encore Hotel &amp; Suites</a> is a full-service vacation resort that is owned and operated by Mike Conn and his sons, Jeff and Braden.
Opening a hotel — like any large-scale venture — takes years of planning, and room for the unexpected. Luckily, when it came time to choose a property management system and payment processing solution, the family put their new business in good hands with two of the <a href="https://www.shift4.com/hospitality" target="_blank" rel="noopener">hospitality</a> industry’s most innovative, reliable, and secure platforms.
<h3>Finding the Perfect Partnership</h3>
The Conn family’s first choice for a property management solution was <a href="https://skytouchtechnology.com/" target="_blank" rel="noopener">SkyTouch Hotel OS</a> because of its cloud-based capabilities and rich features, including systems to manage room rates, reservations, housekeeping, billing, and much more. The ability to manage your hotel from anywhere — eliminating the need for expensive on-site servers and hardware — allows staff to manage and operate many properties at once. Live 24/7 customer support along with on-site and remote training options ensure staff comfort and confidence.
SkyTouch Technologies is a long-time partner with <a href="https://www.shift4.com/" target="_blank" rel="noopener">Shift4</a>. The joint payment solution is secured by Shift4’s industry-renowned payment gateway technologies and offers unmatched functionality and stability. This includes their world-class EMV solution, tokenization (a technology they are credited with inventing), and PCI-validated point-to- point encryption (P2PE). Shift4 also brings to the table several unique features that are designed specifically to meet the payments needs of hospitality environments, including tokenized reservations.
&nbsp;
<img decoding="async" loading="lazy" class="aligncenter wp-image-29015 size-full" src="https://assets.shift4.com/wp-content/uploads/2022/12/berlin-encore_01.png" alt="Shift4 case study Berlin Encore" width="768" height="432" srcset="https://assets.shift4.com/wp-content/uploads/2022/12/berlin-encore_01.png 768w, https://assets.shift4.com/wp-content/uploads/2022/12/berlin-encore_01-300x169.png 300w" sizes="(max-width: 768px) 100vw, 768px" />
&nbsp;
When Shift4 announced the expansion of its offering to introduce a complete payment solution that provides payment processing, merchant services and payment terminals, SkyTouch was excited to pass these benefits on to their merchant customers. So, they began offering Shift4&#8217;s enhanced solution as an option with their integration.
<h3>Shift4 Delivers</h3>
An <a href="https://www.shift4.com/unified-commerce" target="_blank" rel="noopener">end-to-end solution</a> with complete payment processing integration from Shift4 and SkyTouch Technology includes:
<ul>
<li>Secure payment gateway</li>
<li>SkyTouch Hotel OS integration</li>
<li>Competitively prices merchant services</li>
<li>EMV Devices with lifetime free replacement warranty</li>
<li>24/7/365 customer support</li>
<li>One point of contact for all payment needs</li>
</ul>
<h3>The Benefits of Choosing the Right Solution</h3>
The implementation process was simple, fast, and seamless. Since all the payment hardware and software they needed came from SkyTouch and Shift4 themselves, the hotel didn’t have to worry about going to any outside parties for their payment terminals, key injection, gateway services, or business management software. To top it off, they were able to save time with the added convenience of having to make only one call to support any of their payments needs.
Ultimately, the Berlin Encore was able to open their hotel and start using all the features and technologies that the payment partnership had to offer. Shift4 and SkyTouch Technology delivered unmatched value with their solution, which covers the entire payment process, from before check-in to well after check-out.
<blockquote>
“It was really a pretty easy decision. We were able to get a whole lot more for less money, thanks to the money that we saved from our monthly transaction fees and the EMV devices that were included when we signed up. We started saving before we even opened our doors. And since we’ve been using Shift4 and SkyTouch together, having everything under one roof has been really nice.”
</blockquote>
&#8211; Braden Conn, Co-Owner and Operator, Berlin Encore Hotel &amp; Suites
&nbsp;

Shift4 case study Berlin-Encore Hotel & Suites

Berlin Encore: Payment Security & Cost Savings for a Country Hotel

It&#8217;s no surprise that debit and credit cards are the preferred payment methods — in-store and online — for millions of consumers. And the increased use of these payment methods has spurred an uptick in data breaches, cyber theft, and payment security awareness.



A <a href="https://www.jpmorgan.com/content/dam/jpm/commercial-banking/documents/fraud-protection/2021-afp-payments-fraud-and-control-survey-report-highlights.pdf" target="_blank" rel="noreferrer noopener">report sponsored by JP Morgan</a> noted that the increased use of digital transactions has increased cybercrime. In fact, almost 75% of organizations were targets of payment fraud attacks in 2020.



As a result of the increase in payments fraud, a study by Meticulous Research reports that the <a href="https://www.meticulousresearch.com/pressrelease/458/payment-security-market-2028" target="_blank" rel="noreferrer noopener">payment security market</a> is expected to reach $54.1 billion by 2028.&nbsp;



Companies in industries such as eCommerce, travel and hospitality, food and beverage, and sports and entertainment, have always been targets of cybercriminals because their payment systems contain a wealth of customers&#8217; personal and financial data.&nbsp;



What security solutions is your business implementing to protect your customers’ data and your brand? Read on to find out what steps you should take.



<h2 id="h-pci-compliance">PCI Compliance</h2>















To fully understand payment security, you first need to understand the origin. The <a href="https://www.pcisecuritystandards.org/about_us/" target="_blank" rel="noreferrer noopener">Payment Card Industry Security Standards Council (PCI SSC)</a> — or PCI for short — was established in 2006 by American Express, Discover, JCB International, Mastercard, and Visa. The council is a global forum that unites payment industry stakeholders to develop and drive the adoption of data security standards worldwide.&nbsp;



Any business that processes or stores cardholder data must comply with PCI DSS (Data Security Standard) requirements. Depending on how your organization handles payments — card-present for in-person transactions and card-not-present for recurring or online payments — you can validate your compliance with a <a href="https://www.pcisecuritystandards.org/pci_security/completing_self_assessment" target="_blank" rel="noreferrer noopener">self-assessment questionnaire (SAQ)</a> or <a href="https://listings.pcisecuritystandards.org/assessors_and_solutions/qualified_security_assessors" target="_blank" rel="noreferrer noopener">qualified security assessor</a>.&nbsp;



If this sounds complicated or intimidating to you, you’re not wrong. It’s a lot to digest at once, and it’s tricky navigating unfamiliar waters. Thankfully, payment processors and experts, like us at <a href="https://www.shift4.com/" target="_blank" rel="noreferrer noopener">Shift4</a>, can take on the responsibility of keeping your payment systems PCI compliant. We’ve even created a <a href="https://www.shift4.com/security-corner" target="_blank" rel="noreferrer noopener">Security Corner</a> to help businesses navigate the overwhelming world of PCI compliance.



<h2>What Is Payment Security? </h2>











Now that you understand how payment security is governed let’s talk about what it means for your business.&nbsp;



In a nutshell, payment security is the measures companies take to protect their customers’ personal data and prevent fraudulent transactions. They are dynamic, multifaceted strategies happening in real-time to protect sensitive data. Here’s a look at these different layers.



<h3>Card-Present Security</h3>











<h4>EMV</h4>











Your first line of defense is an EMV payment terminal for card-present transactions. EMV is short for Europay, Mastercard, and Visa — named after the founders who created this payment technology standard. Often referred to as a chip card or smart card, EMV cards have a small microprocessor or chip that stores data and makes it nearly impossible for potential thieves to replicate with counterfeit cards.



<h4>Point-to-Point Encryption</h4>











Another safeguard for credit card transactions is Point-to-Point Encryption or P2PE for short. P2PE <a href="https://www.cloudflare.com/learning/ssl/what-is-encryption/" target="_blank" rel="noreferrer noopener">encrypts</a> the cardholder’s data at the point of capture and throughout the entire transaction journey until it reaches the secure decryption endpoint. With P2PE, card data never enters the merchant’s system. Shift4 takes it a step further with PCI-validated P2PE, which requires a higher level of security and dramatically reduces your organization’s <a href="https://www.controlcase.com/how-to-define-pci-dss-scope/" target="_blank" rel="noreferrer noopener">PCI DSS scope</a>.



<h4>Tokenization</h4>











As the <a href="https://www.shift4.com/news/shift4-payments-inventor-of-tokenization-reaches-new-milestone-of-8-billion-tokenized-transactions" target="_blank" rel="noreferrer noopener">inventor of payment tokenization</a>, we know that tokenization is one of the most important steps you can take to protect your customers when it comes to sensitive payment data.&nbsp;



Tokenization replaces the cardholder&#8217;s Personal Account Number (PAN) with a random, alphanumeric value known as a &#8220;token.&#8221; The token value has absolutely no connection to the PAN it represents. Therefore, it cannot be reverse-engineered. Only a payment gateway or token vault can identify the 1:1 relationship between the PAN and the token.



As part of Shift4’s end-to-end payment solution, these three technologies work together to seamlessly deliver the strongest security possible throughout the entire transaction — and long after.














<div class="wp-block-image">
<figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://assets.shift4.com/wp-content/uploads/2022/10/payment-security-diagram-of-security-processes_Shift4-1024x576.png" alt="" class="wp-image-28897" srcset="https://assets.shift4.com/wp-content/uploads/2022/10/payment-security-diagram-of-security-processes_Shift4-1024x576.png 1024w, https://assets.shift4.com/wp-content/uploads/2022/10/payment-security-diagram-of-security-processes_Shift4-300x169.png 300w, https://assets.shift4.com/wp-content/uploads/2022/10/payment-security-diagram-of-security-processes_Shift4-768x432.png 768w, https://assets.shift4.com/wp-content/uploads/2022/10/payment-security-diagram-of-security-processes_Shift4-1536x864.png 1536w, https://assets.shift4.com/wp-content/uploads/2022/10/payment-security-diagram-of-security-processes_Shift4-2048x1152.png 2048w, https://assets.shift4.com/wp-content/uploads/2022/10/payment-security-diagram-of-security-processes_Shift4-1568x882.png 1568w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure></div>


&nbsp;



<h3>Card-Not-Present Security</h3>











<h4>Card Verification Value (CVV)</h4>











If you&#8217;ve ever made a purchase online or added value to a mobile device app like Dunkin&#8217; or Starbucks, you&#8217;re already familiar with your payment card&#8217;s CVV. The Card Verification Value — or CVV for short — is the three- or four-digit code on the front or back of your credit or debit card.&nbsp;



A CVV code is typically requested for card-not-present transactions as an additional security measure to ensure that the card is in the hands of the rightful owner.&nbsp;



<h4>Address Verification Service (AVS)</h4>











Another safeguard for eCommerce transactions is address verification. For example, when you place an order online, you are asked to enter a shipping address and your billing address.&nbsp;



The billing address request confirms that the information you&#8217;re supplying matches the information on file with the card issuer. If it&#8217;s a complete mismatch or partial mismatch, the transaction can be declined.&nbsp;



<h4>Secure Socket Layer (SSL)</h4>











Lastly, we have <a href="https://blog.shift4shop.com/do-i-need-an-ssl-certificate-for-my-website-blog-or-ecommerce-store" target="_blank" rel="noreferrer noopener">SSL certificates</a>, a security protocol for online transactions that encrypts information sent over the internet. Have you ever noticed a small lock icon in the address bar of your web browser? Or have you seen a web address that starts with HTTPS? If so, you can rest assured that the website is using SSL and the information you share is protected.



<h2>Why Payment Security Is Important for Your Business</h2>











Implementing the appropriate payment security can make or break any business. A company could spend years establishing itself as a trustworthy brand, then lose it all in an instant because of a payment system breach.



Once your company&#8217;s security has been breached, not only do you lose your data, but you also lose the trust of your customers — trust that likely took years to gain. The last thing your customers want is to spend hours dealing with fraudulent charges — or worse: identity theft —because they used their cards in your store or on your website.



Customers who entrust businesses with their money and personal information also trust that those companies will provide them with secure and seamless buying experiences. Furthermore, you may also run the risk of damaging your relationships with your business partners and service providers.



In addition to tarnishing your reputation, payment fraud can cost your business financially. Depending on the size of a company and the circumstances surrounding the breach, fines can be as high as $500,000 per incident — or sometimes more. The banks may also increase transaction fees or terminate relationships altogether.&nbsp;



Do you remember the <a href="https://www.reuters.com/article/us-target-cyber-settlement/target-in-18-5-million-multi-state-settlement-over-data-breach-idUSKBN18J2GH" target="_blank" rel="noreferrer noopener">Target data breach</a> in 2013? After a 47-state settlement, Target agreed to pay $18.5 million in settlement claims. In fact, when all was said and done, Target said they had lost a total of more than $200 million due to the breach. While this may not cripple a large retailer into bankruptcy, it&#8217;s undoubtedly a massive blow to their bottom line. &nbsp;&#8220;Threats to payment card data continue to increase and impact the payment security landscape in numerous — and increasingly insidious — ways,&#8221; according to Verizon&#8217;s <a href="https://www.verizon.com/business/resources/reports/2020/2020-payment-security-report.pdf?_ga=2.252000073.1916550669.1642034038-364110983.1640037657" target="_blank" rel="noreferrer noopener">2020 Payment Security Report</a>. &#8220;The negative disruption from payment security data breaches can have a temporary or lasting impact on an organization’s sales and company stock price and reputation.&#8221;



<h2>How to Protect Your Business</h2>











When it comes to protecting your business and cardholder data, it’s best to take a layered approach to payment security by implementing the multiple strategies mentioned above. This type of approach is precisely what we do at Shift4 with our <a href="https://www.shift4.com/secure-technology" target="_blank" rel="noreferrer noopener">industry-leading secure technologies</a>.&nbsp;



Our layered approach to credit card security and best-in-class payment solutions protect customer data from end to end, providing both merchants and customers with unmatched security — and peace of mind.&nbsp;



<h2>Final Thoughts</h2>











As the landscape evolves and hackers become more sophisticated, merchants must remain vigilant in the fight against fraud and data breaches. Protecting sensitive customer data should remain a priority — and choosing the best in-store and online payment security solutions can certainly support this objective.

payment security man standing in server room_Shift4

Payment Security: Everything You Need to Know to Protect Your Business

RAKS Building Supply, a lumber yard and hardware store company with multiple locations in New Mexico, works closely with contractors and homeowners as they make improvements to their homes. They had been using <a href="https://www.shift4.com/" target="_blank" rel="noopener">Shift4</a> as their gateway, securing their customers’ transactions with Shift4’s <a href="https://www.shift4.com/secure-technology" target="_blank" rel="noopener">payment security technologies</a> like tokenization and PCI-validated point-to-point encryption.
Shift4’s integration with <a href="https://www.epicor.com/en-us/industry-productivity-solutions/building-supply-software/platforms/bistrack/" target="_blank" rel="noopener">Epicor’s BisTrack</a> point-of-sale software led them to Shift4 originally. Having a compatible integration with BisTrack was the biggest selling point, which allowed them to save time and prevented the frustration of seeking out and integrating a new system.
<h3>Operational Improvements</h3>
They decided to go beyond Shift4’s gateway-only solution and deployed their end-to-end payment processing ecosystem, which delivers all the hardware, software, and third-party integrations that <a href="https://www.raks.com/" target="_blank" rel="noopener">RAKS</a> needed to accept transactions — all from a single source and at a lower cost. This is their first experience implementing an integrated payment approach for their business, and they have been thrilled with the difference that it has made to their day-to-day operations as well as their bottom line.
<h3>Favorite Features and Improvements</h3>
<ul>
<li>Lighthouse Transaction Manager</li>
<li>Universal Transaction Gateway</li>
<li>Quicker and More Efficient Reconciliation</li>
<li>Card on File with Tokenization</li>
<li>Monthly Cost Savings</li>
<li>Accepting Contractor Payments Over the Phone</li>
</ul>
<h3>Benefits of Shift4’s End-to-End Solution</h3>
Typically, when a business wants to set up a payment processing system, they need to work with a different vendor for each of the components: point of sale, gateway, devices, key injection, processor, etc. This — by design, unfortunately — often leads to a drawn-out process with a lot of room for complications, miscommunication, delays, and unexpected costs.
Instead, Shift4 has rethought this entire process, delivering all these pieces together — from a single source. By cutting the multiple vendors out of the equation, what used to be an implementation of weeks or months now takes only days. What’s more, it comes as a complete, cohesive solution with components that are already designed to work seamlessly together.
&nbsp;
<img decoding="async" loading="lazy" class="aligncenter size-full wp-image-29019" src="https://assets.shift4.com/wp-content/uploads/2022/12/raks_01.png" alt="Shift4 case study Raks Building Supply" width="768" height="432" srcset="https://assets.shift4.com/wp-content/uploads/2022/12/raks_01.png 768w, https://assets.shift4.com/wp-content/uploads/2022/12/raks_01-300x169.png 300w" sizes="(max-width: 768px) 100vw, 768px" />
&nbsp;
As RAKS made the transition from piece-meal payments to Shift4’s fully integrated, connected ecosystem, their installation and implementation process went quickly and smoothly. Since everything was coming directly from Shift4, they didn’t have to worry about any of the hardware or software being incompatible. Plus, Shift4’s comprehensive Installations and Support teams were able to assist with every component.
<blockquote>
“Shift4’s staff was helpful and available to address questions or concerns. It has also proven to be very user-friendly. The change has been an improvement for our company.”
</blockquote>
<center>— Bobby Trujillo, Systems Administrator, RAKS Building Supply</center>

RAKS Building Supply: End-to-End Payments Improve Operations

Does your business have multiple streams of revenue? If you operate a hotel, reservations are one revenue center and the on-premise restaurant is another. Or perhaps you run a retail store but also sell merchandise online. Your brick-and-mortar store and your eCommerce store are individual revenue centers.



If this is how your business operates, you have multiple revenue centers, and it’s time to start thinking about unifying them. From a daily operational standpoint to a more seamless accounting process, unifying revenue centers will allow you to work smarter, not harder. 



<h2 id="h-what-is-a-revenue-center">What is a Revenue Center?</h2>



Each distinguished area of your business where sales occur is considered a revenue center. For instance, a hotel or resort is the perfect example of a business with multiple revenue streams.



<h3 id="h-reservations">Reservations</h3>



When guests book a room on your property, the income generated from their reservation is a revenue stream. This segment can be further broken down into more function-specific units such as direct reservations, online reservations, and third-party reservations on platforms like Expedia or Tripadvisor. 



<h3 id="h-dining">Dining</h3>



Most hotels and resorts have multiple dining options that produce revenue. Just like with reservations, these profit centers can be further segmented into smaller units including room service and individual locations like the pool bar or the five-star restaurant. 



<h3 id="h-retail">Retail</h3>



Hospitality properties have one or multiple retail outlets (e.g., gift shop) that’s considered its own revenue stream. 



<h3 id="h-event-center">Event Center</h3>



If your property rents out designated areas for private events, you can consider these separate revenue centers as well.



<h3 id="h-golf-course">Golf Course</h3>



Did someone say tee time? Golfers will not only pay to hit the links, but if you have a pro shop and a nineteenth hole (clubhouse bar), you can also consider these additional revenue streams. 



<h3 id="h-spa">Spa</h3>



Last but not least, if you have an in-house spa you’ll want to include any services and retail products as an additional source of revenue.



&nbsp;



<figure class="wp-block-image aligncenter">
<figure id="attachment_28877" aria-describedby="caption-attachment-28877" style="width: 750px" class="wp-caption aligncenter"><img decoding="async" loading="lazy" class="wp-image-28877 size-large" src="https://assets.shift4.com/wp-content/uploads/2011/04/revenue-center-01_diagram-of-various-revenue-centers-within-a-business-1024x576.png" alt="revenue center diagram showing various revenue centers in a business" width="750" height="422" srcset="https://assets.shift4.com/wp-content/uploads/2011/04/revenue-center-01_diagram-of-various-revenue-centers-within-a-business-1024x576.png 1024w, https://assets.shift4.com/wp-content/uploads/2011/04/revenue-center-01_diagram-of-various-revenue-centers-within-a-business-300x169.png 300w, https://assets.shift4.com/wp-content/uploads/2011/04/revenue-center-01_diagram-of-various-revenue-centers-within-a-business-768x432.png 768w, https://assets.shift4.com/wp-content/uploads/2011/04/revenue-center-01_diagram-of-various-revenue-centers-within-a-business-1536x864.png 1536w, https://assets.shift4.com/wp-content/uploads/2011/04/revenue-center-01_diagram-of-various-revenue-centers-within-a-business-2048x1152.png 2048w, https://assets.shift4.com/wp-content/uploads/2011/04/revenue-center-01_diagram-of-various-revenue-centers-within-a-business-1568x882.png 1568w" sizes="(max-width: 750px) 100vw, 750px" /><figcaption id="caption-attachment-28877" class="wp-caption-text">Various revenue centers of a business</figcaption></figure>
</figure>

&nbsp;

<h2 id="h-revenue-center-vs-cost-center-what-s-the-difference">Revenue Center vs. Cost Center — What&#8217;s the Difference?</h2>



If we’re talking about revenue centers, it’s only fair to mention cost centers, too. 



While a revenue center is directly responsible for generating revenue, a <a href="https://www.investopedia.com/terms/c/cost-center.asp#" target="_blank" rel="noopener">cost center</a> is an area of business that is essential for operations, but doesn’t directly generate revenue for the company. Cost centers can be (but are not limited to) the HR department, the IT department, and the Maintenance department. 



<h2 id="h-why-is-unifying-revenue-centers-important">Why is Unifying Revenue Centers Important?</h2>



Now that you’ve taken the time to define your revenue centers and understand the importance of doing so, let’s talk about unifying them. 



Separate revenue streams don’t mean separate payment processes — it actually means the opposite. Carving out and tracking individual revenue centers is hard enough. You don’t want to overcomplicate the matter by working with multiple vendors to solve the singular problem of accepting payments.  



Think about it. When it comes to accepting payments, you are potentially dealing with a minimum of six different vendors:



<ul>
<li style="font-weight: 400;" aria-level="1">Hardware vendors for Point-of-Sale (POS) systems or credit card terminals</li>
<li style="font-weight: 400;" aria-level="1">A PCI-validated Key Injection Facility (KIF) that coordinates with the hardware vendor and injects the encryption keys into the terminals</li>
<li style="font-weight: 400;" aria-level="1">Software vendors for the POS or Property Management System (PMS) application &#8211; PLUS you could potentially have different software vendors for each revenue center (PMS software, reservation software, retail POS, golf course software, spa software)</li>
<li style="font-weight: 400;" aria-level="1">A payment processor so you can accept credit card payments and generate the actual revenue</li>
<li style="font-weight: 400;" aria-level="1">A payment gateway for the <a href="https://www.shift4.com/secure-technology">secure technology</a> to transmit payment card details to your payment processor </li>
<li style="font-weight: 400;" aria-level="1">Additional business management apps such as accounting software programs</li>
</ul>



Depending on your unique business requirements, the number of vendors you rely on to conduct your day-to-day business can grow exponentially. As a result, not only can each vendor be a potential breaking point in the payment processing chain, but you’re probably paying redundant fees, too. 



If your POS hardware malfunctions, the software is inoperable. If your payment processor experiences an outage, you can no longer accept card payments from your POS system. These issues and others can hinder your operations and cause a loss of revenue. Not to mention, you’ll have multiple vendors to deal with to correct the problem.



Check out the diagram below that highlights potential breaking points and additional costs associated with this type of set up. 


<div class="wp-block-image wp-image-28889 size-medium">
<figure class="aligncenter"><img decoding="async" loading="lazy" width="898" height="499" class="wp-image-28889" src="https://assets.shift4.com/wp-content/uploads/2011/04/Implementation_Before.png" alt="Revenue centers potential breaking points diagram" srcset="https://assets.shift4.com/wp-content/uploads/2011/04/Implementation_Before.png 898w, https://assets.shift4.com/wp-content/uploads/2011/04/Implementation_Before-300x167.png 300w, https://assets.shift4.com/wp-content/uploads/2011/04/Implementation_Before-768x427.png 768w" sizes="(max-width: 898px) 100vw, 898px" /></figure></div>
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Why not simplify and streamline processes so you can remove the unnecessary parts? With a vendor like <a href="https://www.shift4.com/" target="_blank" rel="noopener">Shift4</a>, you can do just that. 



We maintain integrations with more than 450 commerce-enabling software solutions to deliver a <a href="https://www.shift4.com/unified-commerce" target="_blank" rel="noopener">unified commerce experience</a> and simplify complex payment ecosystems. And if something goes wrong, you won’t have to track down half a dozen different vendors to fix the issue — if they can even agree on what the issue is.



Instead, one call to us is all you’ll need to make. Payments are finally simple.



&nbsp;


<div class="wp-block-image wp-image-28891 size-full">
<figure class="aligncenter is-resized"><img decoding="async" loading="lazy" class="wp-image-28891" src="https://assets.shift4.com/wp-content/uploads/2011/04/Implementation_After.png" alt="revenue centers no breaking points with Shift4" width="494" height="170" srcset="https://assets.shift4.com/wp-content/uploads/2011/04/Implementation_After.png 494w, https://assets.shift4.com/wp-content/uploads/2011/04/Implementation_After-300x103.png 300w" sizes="(max-width: 494px) 100vw, 494px" /></figure></div>


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<h2 id="h-the-wrap-up">The Wrap Up</h2>

Unifying your revenue centers is well worth the effort. It streamlines operations and reduces costs for business owners, and provides a seamless payment experience for your customers.

What is a Revenue Center? Should You Unify Yours?

If you’re not making the most of your gift card program (or have yet to implement one), you’re missing out on some serious revenue potential. Gift cards are steadily increasing in popularity year over year, with the <a href="https://www.statista.com/statistics/1004280/gift-cards-market-value-worldwide/" target="_blank" rel="noopener">U.S. market expected</a> to reach $510 billion in 2025. 
No matter what type of business you operate, you can’t afford to miss out on the equity that comes with building an effective gift card program. 
Here’s a look at how you can optimize this area of your business and make it successful.
<h2>What is a Gift Card Program?</h2>
&nbsp; 
A <a href="https://www.shift4.com/gift-card-program" target="_blank" rel="noopener">gift card program</a> allows businesses to sell (issue) gift cards redeemable for goods or services. If a gift card is only redeemable at your business, it’s considered a closed-loop gift card program. 
On the other end of the spectrum, open-loop gift card programs are redeemable anywhere. For example, gift cards with a card network logo like Visa or American Express are considered open-loop gift cards. Therefore, they are redeemable at any business that accepts those types of payment cards.
<h2>What are the Benefits of a Gift Card Program?</h2>
&nbsp; 
A gift card program is a cost-effective way to boost revenue, drive customer loyalty, and build brand awareness. They can also be a lifeline for your business during a time of crisis, such as the <a href="https://www.shift4.com/news/shift4-payments-launches-shift4cares-com-to-raise-over-200-million-for-small-businesses-and-highlight-economic-impact-of-covid-19" target="_blank" rel="noopener">COVID-19 pandemic</a>.  
Let’s explore some of the game-changing benefits of these magical little vouchers.
<h3>Build Brand Awareness</h3>
&nbsp; 
When you’re looking for a new restaurant to try, a new vacation destination, or need some work done around the house, who are the first people you reach out to for suggestions? 
If your answer is friends or family, you’re in good company. A <a href="https://blog.hubspot.com/blog/tabid/6307/bid/30239/71-More-Likely-to-Purchase-Based-on-Social-Media-Referrals-Infographic.aspx" target="_blank" rel="noopener">Hubspot survey</a> found that 90% of respondents trust suggestions from friends and family. We inherently trust our loved ones, so their recommendations, experiences, and implicit <a href="https://everyonesocial.com/blog/word-of-mouth-marketing-stats/" target="_blank" rel="noopener">word-of-mouth marketing</a> is meaningful. 
A gift card program extends this type of marketing and is a great way to build brand awareness. For example, let’s say a first-time customer, Jane, walks into your restaurant. She has the trifecta of an overall great experience — the food is delicious, the service is on point, and your prices are reasonable. Not only did you start the customer journey off on the right foot, but you’re (most-likely) creating a repeat customer and laying the foundation of building brand awareness.  
Now, let’s say a month goes by, and Jane needs a last-minute birthday gift for her friend John and wants to pick up something local on the way to the party. So she runs through a mental checklist of businesses she likes and cross-checks that with ones she thinks John will also enjoy. She recalls the great experience she had while dining at your restaurant, and decides to buy John a gift card. 
Jane pops into your restaurant and buys a gift card for John — a $50 value. Upon receipt, John tells Jane he’s seen your restaurant driving around town but has never been there to dine. Now, armed with a gift card, he has an incentive to check it out.
<h3>Boost Your Bottom Line</h3>
&nbsp; 
Building brand awareness goes hand in hand with boosting your bottom line. The more people that know about your restaurant, the more potential you have to grow your customer base. Getting back to our Jane and John example, let’s see how the domino effect of a $50 gift card plays out. 
After a long work week, John brings his family of four to your restaurant for dinner on Friday night. After they order drinks, an app, and their entrees, the check comes to $120 (not including gratuity, of course). Already, John is spending $70 more than the amount of his gift card. 
In fact, 65% of <a href="https://www.giftcards.com/gift-card-statistics" target="_blank" rel="noopener">gift card recipients</a> spend 38% more than the gift card balance, so John’s spending habits are on par with most gift card recipients. If situations like this continue to play out over the course of the year, you’ll see a steady boost to your cash flow and your bottom line.
<h3>Drive Customer Loyalty</h3>
&nbsp; 
If customers have a good experience at your restaurant, there’s a high probability that they’ll return again and again. 
Just like Jane, the restaurant made a good first impression on John and it’s highly likely that he’ll be back for another meal in the future. In this case, not only did a new customer spend more than double the amount of the gift card, but you also gained a new patron. 
Another way to leverage a gift card program to drive customer loyalty is to use it in conjunction with your <a href="https://www.skytab.com/features/loyalty-and-marketing/" target="_blank" rel="noopener">customer loyalty program</a>. For instance, every time a customer spends $500 at your restaurant, they get a $15 gift card to use on their next visit. 
<img decoding="async" loading="lazy" class="aligncenter wp-image-28883 size-large" src="https://assets.shift4.com/wp-content/uploads/2015/01/gift-card-program_happy-customer-showing-her-gift-card-1024x576.png" alt="gift card program Shift4Gift happy customer showing her gift card" width="750" height="422" srcset="https://assets.shift4.com/wp-content/uploads/2015/01/gift-card-program_happy-customer-showing-her-gift-card-1024x576.png 1024w, https://assets.shift4.com/wp-content/uploads/2015/01/gift-card-program_happy-customer-showing-her-gift-card-300x169.png 300w, https://assets.shift4.com/wp-content/uploads/2015/01/gift-card-program_happy-customer-showing-her-gift-card-768x432.png 768w, https://assets.shift4.com/wp-content/uploads/2015/01/gift-card-program_happy-customer-showing-her-gift-card-1536x864.png 1536w, https://assets.shift4.com/wp-content/uploads/2015/01/gift-card-program_happy-customer-showing-her-gift-card-1568x882.png 1568w, https://assets.shift4.com/wp-content/uploads/2015/01/gift-card-program_happy-customer-showing-her-gift-card.png 1601w" sizes="(max-width: 750px) 100vw, 750px" />
<h2>How to Manage a Gift Card Program?</h2>
&nbsp; 
To have a successful gift card program, you’ll need to find the most effective way to manage it. There are a lot of moving pieces when it comes to gift card sales, and here are a few things you’ll need to know.
<h3>Issuing</h3>
&nbsp; 
From a business perspective, when customers purchase gift cards, it’s known as issuing. Your business is issuing a gift card with a predetermined balance that you’re collecting payment for at the time of purchase.
<h3>Redemption</h3>
&nbsp; 
On the other hand, when customers actually spend the gift card, it&#8217;s known as redemption. They&#8217;re redeeming goods or services in the amount of (and often exceeding) the card&#8217;s value. 
<h3>Balances</h3>
&nbsp; 
Here&#8217;s where it gets tricky. Suppose the gift card is not redeemed for the total value during a transaction. In that case, it&#8217;s your responsibility as the business owner to keep track of the balance left on the card. Imagine doing that for every single card you issue.
<h3>Replenishment </h3>
&nbsp; 
Some physical gift cards are reloadable, so you can repeatedly add funds to an existing card. 
A <a href="https://www.skytab.com/" target="_blank" rel="noopener">Point-of-Sale (POS) system</a> is the absolute best way to manage a gift card program in these digital times. All of the details above are tracked automatically with a POS system.
Most POS solutions have a proprietary gift card program or integrate directly with a third-party provider. While you may pay a small transaction fee (as in pennies) to process gift cards, the automation of these card management processes is vital to being successful and worth every penny.
<h2>Physical and Digital Gift Cards</h2>
&nbsp; 
Since you’ll be managing the gift card program via your point-of-sale system, it’s important to ensure that your provider offers both physical and digital gift card options. Even though we&#8217;re primarily a digital-first society, we still have analog tendencies. So make sure you&#8217;re serving both types of customers, so you don&#8217;t miss out on any sales.   
<h2>Marketing Campaigns</h2>
&nbsp; 
Speaking of sales, how will you ever sell any gift cards if nobody knows you offer them? Recurring marketing campaigns around your gift card program is a great way to get the word out.
<h3>Digital Marketing</h3>
&nbsp; 
Whether you send an email blast to your existing customers or use social media to spread the word, you’ll want to invest the time (and maybe a few dollars) in promoting the program. This is especially important around the many holidays throughout the year when gift-giving is a customary tradition. 
<h3>Traditional Marketing</h3>
&nbsp; 
You can also explore more traditional methods like internal and external signage. When customers walk through the door, it doesn&#8217;t hurt to let them know gift cards are available for purchase. A small sticker on the door, a display, or digital signage are great ways to bring awareness to your gift card program. 
<h3>Special Promotions</h3>
&nbsp; 
Expanding on leveraging gift cards with your customer loyalty program, you can take it a step further. You can run special promotional periods or gift card incentives on specific items. For instance, for every $50 gift card purchase between May 1st and July 1st, the purchaser gets a $10 bonus gift card. 
<h2>Final Thoughts</h2>
&nbsp; 
As one of the more popular gift ideas and a cost-effective way to open up a new revenue channel, optimizing your gift card program is a no-brainer. If you’re not marketing your gift card program to the fullest, now is the time to start.

grift card program Shift4Gift business owner using gift cards

Learn How to Get the Most Out of Your Gift Card Program

Inside Washington’s Mount Rainier National Park, <a href="https://whittakermountaineering.com/" target="_blank" rel="noopener">Whittaker Mountaineering</a> is the place to go for the park’s more adventurous guests to prepare for their journeys to the summit. Founded by lifelong climbers and guides — and twin brothers — Jim and Lou Whittaker, the store rents and sells clothing and equipment to park guests as well as online.
Much of the clothing for sale is the company’s own clothing line, Bight Gear. They decided to overhaul many of their operational processes, one of which is their payment system. <a href="https://www.shift4.com/" target="_blank" rel="noopener">Shift4</a> was able to be their guide as they implemented a number of hardware and software improvements, thanks to Shift4’s <a href="https://www.shift4.com/unified-commerce" target="_blank" rel="noopener">end-to-end payment solution</a>.
<h3>Building on a Quality Business Relationship</h3>
Before Whittaker Mountaineering became a Shift4 customer, the two companies crossed paths several times over the years. Members of the Shift4 leadership team have climbed Mount Rainier as well as Vinson Massif in Antarctica with <a href="https://www.rmiguides.com/" target="_blank" rel="noopener">RMI Expeditions</a> — Jim and Lou’s company that provides guided climbs. Many of Shift4’s employees have also been to Rainier BaseCamp (home of Whittaker Mountaineering and RMI), and rented gear from the store for their Rainier climbs.
<div class="react-reveal content-block--content-text">
<img decoding="async" loading="lazy" class="aligncenter size-full wp-image-29021" src="https://assets.shift4.com/wp-content/uploads/2022/12/whittaker_01.png" alt="Shift4 case study Whittaker Mountaineering" width="768" height="432" srcset="https://assets.shift4.com/wp-content/uploads/2022/12/whittaker_01.png 768w, https://assets.shift4.com/wp-content/uploads/2022/12/whittaker_01-300x169.png 300w" sizes="(max-width: 768px) 100vw, 768px" />
Whittaker Mountaineering switched their point-of-sale (POS) system to <a href="https://www.wintersteiger.com/en/Ski-Service-Rental-and-Lockers">Wintersteiger Easyrent</a>, which happens to be one of Shift4’s <a href="https://www.shift4.com/partners" target="_blank" rel="noopener">third-party integration partners</a>. This provided Whittaker with an opportunity to adopt the rest of Shift4’s payment processing ecosystem, which provides everything a business needs to accept payments from a single source. Whittaker was able to use Shift4 as the only vendor for their entire payment system, including free key-injected EMV devices, gateway and encryption solutions, processor connection, eCommerce platform, and more.
This approach saved them the trouble of having to deal with a separate company for each of those components, which leads to miscommunication, delays, and higher costs. Shift4’s single-vendor implementation makes the process much simpler and more cost-effective.
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</div>
<h3>The Cost Savings Were Immediate</h3>
The most noticeable benefit when businesses employ Shift4’s end-to-end solution is how competitive the rates and prices really are. Since Shift4 is the provider of all the payment processing components, they are able to be flexible with the pricing in ways that just aren’t possible with a multi-vendor implementation, with each vendor only able to control the pricing in their own section of the payment process.
&nbsp;
<img decoding="async" loading="lazy" class="aligncenter size-full wp-image-29022" src="https://assets.shift4.com/wp-content/uploads/2022/12/whittaker_02.png" alt="Shift4 case study Whittaker Mountaineering" width="768" height="432" srcset="https://assets.shift4.com/wp-content/uploads/2022/12/whittaker_02.png 768w, https://assets.shift4.com/wp-content/uploads/2022/12/whittaker_02-300x169.png 300w" sizes="(max-width: 768px) 100vw, 768px" />
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<h3>Operational Improvements</h3>
The cost savings were not the only improvements the business saw. It has become a lot easier and faster to check out customers. The store was able to implement several additional revenue streams and payment methods that they didn’t have before Shift4. In upgrading to new customer-facing contactless EMV terminals, they can accept NFC payments like Apple Pay, which they say has helped them tremendously. They also made improvements to their card-not-present revenue centers, including a brand-new website, eCommerce store, and a more integrated phone order system (i.e., no more having to write credit cards down on a paper order form).
With all these new and improved systems in place, Whittaker Mountaineering is now running smoother than ever, with happier customers and a bigger bottom line.
<blockquote>
“A good percentage rate and the customer-facing contactless terminals are the obvious benefits. However, it was pretty cool to get an email directly from Jared, the CEO, giving us a shout-out for switching to Shift4 and opening the door to go directly to him if we needed any assistance. We love the team at Shift4 and are really happy to be on board with a company that is helping small businesses save money.”
</blockquote>
— Kerry Whittaker, Director of Operations Whittaker Mountaineering

Shift4 Case Study Whittaker Mountaineering

Whittaker Mountaineering: Elevates Cost Savings & Additional Revenue Streams

Tanglewood Resort sits alongside Lake Texoma in northern Texas, right on the border with Oklahoma. Because of their location, the full-service resort and conference center has incorporated a unique combination of lakeside views, fine dining, spa services, lake activities, a championship golf course, and a host of outdoor activities like hiking, boating, fishing, horseback riding, and more.
Tanglewood is often the destination for large groups of guests, and their experienced staff is there to make sure the stay is memorable.
<h3>Taking the Leap to Single Source Payments</h3>
In 2018, <a href="https://www.tanglewoodresort.com/" target="_blank" rel="noopener">Tanglewood Resort</a> made the decision to switch to the complete payment processing solution from long-time partners <a href="https://www.shift4.com/" target="_blank" rel="noopener">Shift4</a> and <a href="https://springermiller.com/" target="_blank" rel="noopener">Springer-Miller Systems</a>. The resort was already a customer of Shift4 and Springer-Miller, using their secure payment gateway and property management system, respectively. However, this new offering from the partnership delivered additional services that tied it all together: merchant services, secure gateway, P2PE-enabled card readers, device injection and management, auditing, accounting, reporting, and much more.
Combining these services opens up possibilities to eliminate redundant costs. Prior to moving to a single-source solution, Tanglewood Resort had been utilizing a piecemeal approach to their payment processing, meaning they coordinated with (and got a bill from) a different service provider for each of their payment services separately.
When they started utilizing the all-in-one approach from Shift4 and Springer-Miller, they found out how much easier and cost-efficient their payments could actually be.
<h3>Delivering an End-to-End Solution</h3>
Shift4 and Springer-Miller Systems deliver an integrated solution that helped Tanglewood Resort cut costs and improve operations.
<ul>
<li>Waived Gateway Fees</li>
<li>Free EMV Devices</li>
<li>Full Integration</li>
<li>Streamlined Support</li>
<li>Savings</li>
<li>Business Intelligence</li>
<li>Simplified Implementation</li>
</ul>
<h3>The Advantages of Bringing Payments Under One Roof</h3>
Although making such a significant change was intimidating, the execution and implementation were completed on schedule, without any issues or system downtime, and the benefits went into effect immediately. From waived gateway fees alone, the property was able to save an average of $400 per month. Additionally, they were able to replace every PIN pad device on the entire resort with EMV- and P2PE-capable payment terminals, including signature capture devices at the front desk to reduce chargebacks.
&nbsp;
<img decoding="async" loading="lazy" class="aligncenter size-full wp-image-29020" src="https://assets.shift4.com/wp-content/uploads/2022/12/tanglewood_01.png" alt="Shift4 customer case study Tanglewood resort" width="768" height="432" srcset="https://assets.shift4.com/wp-content/uploads/2022/12/tanglewood_01.png 768w, https://assets.shift4.com/wp-content/uploads/2022/12/tanglewood_01-300x169.png 300w" sizes="(max-width: 768px) 100vw, 768px" />
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Another one of the major operational improvements the resort experienced was streamlined customer support. As an <a href="https://www.shift4.com/unified-commerce" target="_blank" rel="noopener">all-in-one payments provider</a>, Shift4 gives businesses one number to call to resolve any issues, as opposed to having to make multiple calls to various providers to track down which was responsible for the issue.
After successful integration, installation, and pilot, Tanglewood Resort is experiencing daily the countless benefits that have come with uniting their payments through the proven partnership of two industry leaders.
&nbsp;
<blockquote>
“When a group of 300 guests arrives at the property, it’s really nice not having to worry about our payments and just focus on the guest experience. The products from Springer-Miller System and Shift4 Payments work really well together and are always reliable.”
</blockquote>
— Magan Crowley, Guest Relationships Manager &amp; Memberships Coordinator, Tanglewood Resort
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