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Batch Credit Card Processing

Reviewed by Sweta | Updated on Sep 30, 2020

Catalogue

Introduction

Batch processing refers to processing all the credit card transactions once—after closing the business for the day or as specified by the credit card processing company. It will mostly be done at the end of the day.

What is Batch Credit Card Processing?

Batch credit card processing comes at the second stage in the transaction processing cycle after swiping the card to the processing device. Batch processing enables securing payments from the customer's credit card issuing bank.

After the credit card swiping machine sends authorisation codes to its payment processor company, the company segregates the transactions and forwards the codes to the respective banks. The banks, then, remit the payments to the merchants. The series of operations done to complete the payment forms batch credit card processing.

Why Batch Credit Card Processing is Important?

  • Batch processing is part of the settlement of dues from the various banks to the merchant.

  • The process of authorisation of credit card is undertaken before the settlement of dues.

  • The authorisation takes place at the time of purchase of the goods or services.

  • The merchant bank processing the payment charges a fee from the business organisation.

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