What is "Batch Processing"?
Once a transaction is made, the card-issuing bank sends an authorization code to the merchant, which is when the batch processing starts. It is called a batch because the transactions are settled at once.
How the Batch is Processed
After each transaction, the merchant receives the authorization codes, which are compiled into a data file on the terminal, software or gateway. When the merchant is ready to batch out, the codes are uploaded and processed at the same time.
Once the merchant has settled for the end of the day, the best time since there is a fee per settlement, all of the authorization codes are then sent to the payment processor, who will then sort and deliver the data to the issuing bank. The bank has usually placed a hold on the funds to cover the transaction. Once it has been settled, the bank will release the funds to the processor, who turns around and deposits it into the merchant's account. If there are no pending transactions when it’s time to settle the batch, nothing is processed and no fees will be assessed.
Batch Processing Electronic Payments
Batch processing through Converge, our customizable payment gateway requires no special equipment or software. Transactions are processed in real-time with an internet connection that is fully PCI compliant and utilizes most fraud protection measures.
Platinum Payments offers an auto-batch service that will settle the transactions at the same time every day. Batch processing for automated recurring billing, subscriptions or membership fees is a convenient option that can be set up by uploading a file containing customers’ transaction information for billing.
Why does this matter to you?
There may be times your business needs cash quickly, or maybe there's a holiday coming up and you need to free up some cash that's been processed. The needs and uses to this are limitless and very unique to your business needs, but one thing is for sure, Batch Processing sounds like something very "defaultey" on your merchant account.
To grab more information reach out to us.