CC Lifecycle and Transaction Types

A credit card transaction is a payment processed using a customer’s debit or credit card through a supported card network and processor. These transactions follow a defined authorization, settlement, and funding lifecycle that determines when funds move and when actions such as voids, refunds, or disputes can occur.

Settlement Timeframes

• Credit Card debit (sale) transactions:
  Typically settle within 24–48 hours

• Credit Card credit/refund transactions:
  Typically take 5–7 business days to post back to the cardholder

  • In some cases, refunds may take up to 10 business days, depending on the issuing bank

Forte maintains processing relationships with several credit card processors. Every Forte merchant processing credit cards will be associated with one of the following:

• Forte Vantiv

• Global Payments (BIN 037000)

• Elavon (Nova)

• Vital / TSYS

• First Data

Forte-Managed Processing Relationships

The following processing relationships are directly managed by Forte:

• Forte Vantiv

• Global Payments (BIN 037000)

For these processors, Forte can assist with transaction research and chargeback-related inquiries.

Cutoff times determine whether a transaction is included in the current business day’s batch or rolls to the next processing day.

Important:
Transactions submitted after the cutoff time will process in the next business day’s batch, which impacts settlement and funding timelines.

Each credit card transaction is assigned a specific transaction type, defining how it behaves in the processing lifecycle.

Common Credit Card Transaction Types

• Type 10 – SALE
  Charges the customer’s credit card and submits the transaction for settlement.

• Type 11 – AUTH ONLY
  Places an authorization hold on the cardholder’s funds without capturing the payment.

• Type 12 – CAPTURE
  Completes an AUTH ONLY transaction and submits it for settlement.

• Type 13 – CREDIT (Refund)
  Returns funds to the customer’s credit card. Processing time depends on the issuing bank.

• Type 14 – VOID
  Cancels a transaction before it settles. Voids prevent funds from being captured.

• Type 15 – PRE-AUTH
  Approves a customer charge initiated from another system or source and holds funds temporarily.

Credit card transactions move through defined statuses from initiation to completion. Understanding this lifecycle is critical when assisting merchants.

Typical Credit Card Status Flow

1. Authorized

   • Funds are approved and held on the cardholder’s account

   • Applies to SALE, AUTH ONLY, or PRE-AUTH transactions

2. Captured

   • Authorization has been finalized (via SALE or CAPTURE)

   • Transaction is queued for settlement

3. Settled

   • Transaction has been batched and submitted to the processor

   • Funds are in transit to the merchant

4. Funded

   • Funds have been deposited into the merchant’s bank account

Alternate Status Paths

• Voided

  • Transaction was canceled before settlement

• Refunded (Credited)

  • Funds were returned to the cardholder after settlement

• Chargeback

  • Funds were reversed due to a cardholder dispute

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Voids are always preferred when available, as refunds take longer to process and appear on customer statements.