Batch

Batch (aka "Batching" or "Batch Settlement")
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Batch Definition

Batch also known as "Batching" or "Batch Settlement", refer to all of the credit card transactions (sales) occurring before settlement (close of batch). It refers to the transmission of an entire day's worth of credit card sales.

Batching

The process of "batching" is when a merchant will review all their sales for the entire day to ensure they were properly authorized by the cardholder.

Batching should completed at the close of the business day, or when no more transactions are expected for the day. After batching, the merchant then transmits all the sales at one time, called a batch, to the acquiring bank to receive payment.

It is not uncommon for merchant account providers to charge a nominal fee for each batch, called a batch fee, of $0.05- $0.25 per batch.

Batch Close

Batch close, also called Settlement, may be set to "Automatic" or "Manual".

  • Automatic Batch Close: A preset time each day
  • Manual Batch Close: Which requires the merchant settle transaction from the terminal, software of POS system.

Merchant Alternatives Pro Tip:

For merchants who want the lowest possible batch fees, batch everyday and don't let more than 48 hours pass between batches (settlements). Allowing more than 48 hours between batches may result in your statement transactions being downgraded to EIRF or Standard, which is typically 1-3% higher.

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