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Batch Credit Card Processing

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Batch credit card processing is the process of a merchant processing all of the credit card transactions that they had in a day after the end of business or at a time that has been determined by the credit card processor. This is the second step taken by the merchant so they are closer to getting paid for its customer’s credit card transactions.batch credit card processing

The merchant will send the authorization codes for every credit card transaction to its payment processor. The processors will then categories the transactions by the bank that issued each customers credit card. The banks will then remit the payments to the merchant, which is called settlement.

The Break Down

In order for the merchant to get paid for a customers credit card purchase the first step is authorization. This happens when the purchase takes place as the credit card information and the amount for the transaction is sent to the credit card issuer. They will then verify the owner of the card, if it has been reported stolen and if the customer has enough credit for the transaction.

After the business has closed the merchant will need to transmit the days credit card transactions to the bank.

The bank will then subtract a fee and ensures that the merchant will get paid for the transactions in that batch. The bank also informs the customers credit card issuer of the transaction so that it can be posted to the cardholder and informs them that the merchant has been paid.

The process to get the funds for the batch can take a couple of days.

Credit card batching can be set up so that it is dine automatically every day at the same time.

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