Shift4 Payments Review & Alternatives
Meaghan has provided content and guidance for indie retailers as the editor for a number of retail publications and a speaker at trade shows. She is Fit Small Business’s authority on retail and ecommerce.
Anna is a retail expert writer for Fit Small Business with over six years of evaluating dozens of software for small business. She holds a double degree in Accountancy and Financial Management and is currently pursuing further education in financial and payment technology.
This article is part of a larger series on Payments.
Shift4 Payments is a merchant services provider offering card payment processing for retail, restaurants, and ecommerce merchants. Since its launch in 1997, it has grown through high-profile mergers, which include Harbortouch and 3dcart (now Shift4Shop). Shift4 Payments offers virtual terminal processing, transaction management, gift card services, mobile processing, a free terminal program along with its popular payment gateway service, and an in-house POS system.
While Shift4 has some good software solutions (including its retail POS and ecommerce site builder), we don’t recommend Shift4 Payments for small businesses because of its opaque pricing, unfavorable terms and conditions, and extra fees.
Apart from no longer advertising any pricing details, some clients have reported being offered tiered pricing. Additionally, the use of its payment gateway alone carries a three-year contract. Shift4 also markets offerings with free terminals, which then binds merchants to a longer contract and hefty cancellation fees.
What We Like
- Popular payment gateway service
- Works with some high-risk businesses and nonprofits
- POS and ecommerce products
What's Missing
- Reports of tiered pricing
- Minimum one year contract (three years for use of Payment Gateway)
- Expensive early termination fees and payment gateway
- No mobile card reader
Deciding Factors
- Payment services offered: Credit card, digital wallets, gift cards, and ACH payments
- Payment gateway: $25/month, 5 cent/transaction fee, minimum $50/month, three-year contract with early termination fees
- Pricing model:
- Shopping cart: Flat rate
- Reports of tiered and interchange plus pricing from clients
- Ecommerce (shopping cart) transaction fee: 2.9% + 30 cents
- Inactivity fee: $15/month/terminal
- Contract length: one to three years with one year auto-renewal
- Early termination fee: (Gateway) prorated
- Hardware: $200–$500 or lease
- Free terminal program with three-year contract
Why We Don’t Recommend Shift4 Payments for Small Businesses
Initially popular for its payment gateway service, Shift4 Payments has grown into a huge merchant service provider with products from fully integrated shopping carts to POS systems. However, it’s difficult to recommend a provider with not-so-transparent fees and rates, which may be a result of having a large list of affiliates that create their own pricing structure.
Note that Shift4 Payments clearly states in its merchant agreement and terms of service that it can lock you into long-term contracts with hefty early termination fees. Smaller businesses would be better served by one of our recommended merchant service providers that do not have long-term contracts, early termination fees, or inactivity fees.
Shift4 Payments Alternatives
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Best for | Brick-and-mortar retailers and small businesses, especially those with low sales | High-volume sales ($20,000+ monthly) | Businesses processing $10,000+ monthly | Cheapest credit card processing |
Monthly fee | $0 | Starts at $99 | Starts at $79 | $0 |
Card present | 2.6% + 10 cents | Interchange + 8 cents | Interchange + 8 cents | Interchange + 0.1%–0.3%, 5–8 cents |
Card not present | 3.5% + 15 cents | Interchange + 18 cents | Interchange + 18 cents | Interchange + 0.2–0.5%, 10–25 cents |
Ecommerce transaction fee | 2.9% + 30 cents | Interchange + 18 cents | Interchange + 18 cents | Interchange + 0.2–0.5%, 10–25 cents |
Looking for a simple merchant services solution? Square Payments lets you set up and start accepting payments in-person and online in minutes. Sign up is also free for Square’s all-in-one POS, retail POS, restaurant POS, and appointment POS system.
In the News:
In 2018, an antitrust complaint was filed against Shift4 Payments related to its merger with Lighthouse (a restaurant management system provider), effectively cutting out Shift4 competitors from working with clients on the Lighthouse platform. And in 2021, Shift4 Payments was the center of a potential violation of federal securities laws and breach of fiduciary duties filed by a large shareholder rights law firm.
Shift4 Payments Pricing
Shift4 Payments does not advertise its pricing on its website. Rates and fees will vary depending on which back-end processor underwrites your account—and Shift4 Payments has many. It also offers a combination of services customized for particular business types, which will most likely include a custom terms and pricing structure.
You can, however, find incidental and monthly fees information listed in the provider’s merchant agreement contract. They are as follows:
- Payment gateway fees:
- Monthly service fee: $25
- Transaction fee: 5 cents/transaction
- Monthly minimum: $50/month
- Contract length: Three years
- Early termination fee: Prorated by the average fees invoiced since the start of the contract, multiplied by the number of months remaining in the current term
- The website advertises $0 gateway fees, which could mean signing up for a combination of Shift4 Payments services
- Merchant processing fees:
- Annual regulatory compliance fee: $89.95
- Inactivity fee: $15/month/terminal after 30 days of inactivity
- Voice Authorization fee: $1.75/transaction
- Retrieval fee $25/request
- Reject/Returned ACH fees: $25/transaction
- Transaction processing in excess of approved monthly volume: 5%/transaction
- Contract length: One to three years with one year auto renewal; one year minimum requirement
- Same day bank deposits are available though not explained thoroughly on the website
Shift4 Payments Hardware
One of the glaring downsides to using this provider is that it lacks inexpensive mobile card readers often found among Shift4 Payments competitors. It only supports mobile payment terminals, which you can use as a standalone or around your shop. Shift4 provides you with the option to either purchase hardware outright or lease terminals through its “free terminal” program—which comes with signing up for its POS system, Harbortouch.
Payment processing hardware options for Shift4 Payments are as follows:
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(Contact Shift4 Payments for pricing) | (Contact Shift4 Payments for pricing) |
For countertop setup | For standalone and mobile payments |
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Note that the “free terminal program” includes an additional cost of $79 (annual fee). In the event of contract termination, you will be required to return the leased hardware within 15 days; otherwise, you will be charged with a “No return fee” listed below:
- Standard EMV/Contactless terminal (ex. VX520, S80, iPP320): $200
- Enhanced EMV/Contactless terminal (ex. PAX A930, S300, S90, iPP350): $300
- Premium POS terminal bundle (ex. iSC480, POS Bundle): $500
Shift4 Payments Features
Application starts by filling up an initial sign up form on the website. The provider will then match you with a Shift4 Payments affiliate who will offer solutions based on your business needs. If you wish to get a customized plan for your unique business model, then you will need to work with them to come up with the best payment processing rates. Approval time depends on the business type and usually takes a few days after submitting all the requested paperwork.
Shift4 Payments’ sign-up form
(Source: Shift4 Payments)
Shift4 Payments offers one to three-year contracts, with one year auto-renewal for all its merchants. The terms vary depending on the type of service you sign up for, with better rates for higher volume merchants. While we do not recommend Shit4 Payments for small and midsize businesses, busy establishments—like restaurants, subscription-based business, nonprofits, and casinos—that are interested in the provider should:
- Avoid signing up for a tiered-pricing payment plan.
- Consider purchasing the payment terminals outright instead of leasing.
- Review the incidental fees on the merchant application form.
- Ask to clarify funding options and timeframe for transfer of funds.
These are recommendations arising from stipulations included in its payment gateway and merchant agreement terms and conditions.
Shift4 Payments allows merchants to accept online and in-person credit card payments. It supports payment terminals to process magstripe and EMV payments, NFC, digital wallet, and gift cards. Its gateway service allows for keyed-in credit card payments, and while it does not have built-in ACH or e-check payment processing, you can easily add this feature through one of Shift 4 Payments’ integrations.
Long before the big mergers, Shift4 Payments’ gateway was a popular service among medium and large businesses. You can sign up for a merchant account and waive the monthly fee for accessing the payment gateway, but you can also opt to integrate its payment gateway with your POS. Apart from having all your in-person and online transactions processed through the gateway, it offers a virtual terminal solution plus real-time access to reports and analytics on any available browser.
Shift4 Payments has a full suite of ecommerce solutions, from a free website builder to a customizable ecommerce platform. It also has shopping cart integrations and even recently acquired 3dcart (now Shift4Shop, a popular Shopify alternative). Shift4 Payments allows you to process various remote payment types such as over-the-phone, card-on-file, and book and ship transactions. You can also integrate additional payment channels in minutes.
SkyTab is Shift4 Payments’ mobile processing solution that works on supporter-provided payment terminals. It allows merchants to accept all types of card payments, process refunds, and split tenders anywhere in their store. This product works both as a standalone software or as an extension of your countertop setup on your mobile payment terminal. The software also includes features such as online ordering and pay-at-the-table options for food and retail businesses.
Lighthouse offers transaction management functionalities that work great with restaurants and nonprofits. This product doubles as a payment platform with advanced reporting and auditing capabilities, so you can easily track and manage performance. It also entitles you access to the Lighthouse business manager software with marketing and reputation management, remote POS, employee scheduling, and reporting and analytics tools on a customizable dashboard.
Shift4 Payments Ease of Use
Part of Shift4 Payments’ set of features is its ability to offer a unified commerce solution. It allows you to manage multiple payment channels on a single Shift4 Payments platform, providing you with real-time sales reports and analytics when you accept in-person, ecommerce, mobile, and contactless payments. You also get access to available software integrations and app marketplaces, regardless of which payment channel you prefer.
There are over 350 software integrations available for Shift4 Payments merchants in different industries, such as point-of-sale and retail management applications. Third-party apps are also available on Shift4 Payments’ marketplace.
While Shift4 Payments offers 24/7 call and chat support for its customers, there are many reports of unresolved issues, particularly for after sales. You have the option to look for answers on Shift4 Payments knowledge base available on its website—the resource is quite extensive, with downloadable documents and videos available for following installation and troubleshooting procedures.
This provider offers a special set of services for gaming and casino businesses, which you won’t find with popular low-risk Shift4 payments competitors. It lets you accept payments for online gaming, live sports betting, live virtual casino floor games, and poker tournaments. Use the SkyTab on a mobile terminal and self-service kiosks for mobility around the casino and sports betting floor to minimize cashier lines and to arrange for same-day bank deposits for your funds.
Shift4 Payments supports nonprofit organizations by offering various tools for managing donations. It allows you to provide your donors with the option to cover processing fees, sign up for recurring donations, and even donate in cryptocurrency. It also integrates seamlessly with The Giving Block, a popular marketplace for cryptocurrency donations.
What Users Think of Shift4 Payments
There are not a lot of recent Shift4 Payments reviews, although the ones that are available seem authentic. The consensus among users is that Shift4 Payments’ gateway service is easy to integrate and use, although there are some issues with trying to manage deposits and working with customer service.
- G2: Around 10 users rated Shift4Payments an average of 4 out of 5 stars.
- Capterra: About 10 users rated Shift4 Payments an average of 3.67 out of 5 stars.
These are the trends I spotted when reading through Shift4 Payments reviews:
Users Like | Users Don’t Like |
|---|---|
Free payment gateway with customized plans | Poor customer service |
Real-time payment authorization | Transaction holds |
Flexible payment processing | Difficult to track funds |
Bottom Line
While it offers a wide range of merchant service, Shift4 Payments is better suited for medium and large businesses with large volume transactions as these have a better chance of negotiating for lower rates and managing recurring fees. We recommend small business owners consider one of our recommended merchant services that offer price transparency and more flexibility in terms of fees and contract terms.
