What Is Batch Credit Card Processing?

Posted by Brian Latch on December 3rd, 2021

Accepting credit card payments has become the new normal when it comes to running a business or a retail store. In fact, with changing times, a lot of merchants now know how credit card processing works. But did you know that there are different ways in which credit card payment processing and transactions take place? Two of the most common types are real-time processing and batch credit card processing. As the name suggests, real-time processing involves settling the transaction the moment it occurs. But this article will focus on the batch credit card transaction process.

When it comes to online credit card processing, batch processing is the method where a day’s worth of credit card transactions are processed at once. Your sales are stored together in your system and are then sent to your processor at the end of the day to be settled and cleared. Let us now discuss how it works. Let us imagine that you own a food takeaway place. Your customer orders an item and asks for the bill to be settled with a credit card. You swipe the card and get an authorization code. This may look like the end of the transaction but it isn’t. All you have is an authorization code. At the end of the day, you need to transmit all the stored authorization codes to your credit card processing company. And within 48 hours, the amount gets deposited into your account. This process is repeated for all your customers for the day. And this is how batch credit card processing works.

Some of the benefits of batch card processing are-

•          It is convenient
•          It makes it easy to find a specific transaction that is carried out in the day
•          Monthly payments become easier with batch processing
•          It is less of a security risk

We hope this article has given you a basic idea about how batch credit card processing works.