Credit Card Batch Processing
Batch processing is the settlement stage of credit card processing that begins after a transaction has been authorized by the card-issuing bank. Once it sends the authorization code to the merchant, the bank places a hold on the cardholder’s line of credit or account funds to cover the transaction amount.
How Batch Processing Works
Credit card terminals, processing software and electronic payment gateways store all of a merchant’s credit card authorization codes in a data file, usually until the end of the business day, when they are all uploaded and processed simultaneously in one batch.
When it’s time to settle (or close) the batch, the merchant transmits all the authorization codes to their credit card processor, who sorts and forwards them on to the appropriate issuing banks. The banks release the funds to the processor, who deposits them into the merchant’s bank account. This step is typically completed within 48 hours of the transaction. The issuing bank bills the cardholder for the purchase on their monthly statement.
Merchants can close their batch at any time during the day, or even after each individual transaction. However, credit card processors charge a fee each time the batch is closed, so it’s most cost effective to settle all transactions at the same time and avoid multiple fees for the same service.
Batch Processing from Merchant Express®
Merchant Express offers clients an auto-batch close service that automatically settles their transactions at the same time every day. If there are no transactions pending in the batch, it is not closed and no batch fee is generated or charged.
Batch processing can also be set up for automated recurring billing — including monthly subscription or membership fees — by uploading a file containing all of your customers’ transaction information for billing.
Batch Processing with Transaction Express™
At Merchant Express, we offer batch processing through Transaction Express, our complete online payment processing center that’s flexible, customizable and doesn’t require any special equipment or software.
This electronic payment gateway can work for almost any business, handling credit card transactions in real time via any device with a connection to the Internet. Transaction Express is fully PCI compliant and supports fraud prevention tools like AVS, CVV, CVC and CID to keep you and your customers protected.
Merchant Express representatives are standing by to answer your questions about batch processing, merchant accounts and the credit card processing products and services that we offer. Let them help you choose the solutions that meet your business’s processing requirements.