Batch Processing

Batch Processing

After a credit card transaction is made, an issuing bank sends an authorization code to the merchant, and then the “settlement stage” or batch processing begins. It is called batch processing because a number (or batch) of transactions is settled all at one time. 

Batches can be settled at any time throughout the day, but since credit card processors charge a fee each time it’s done, it’s more cost effective and less confusing to settle all transactions simultaneously.

How the Batch is Processed

Throughout the business day, all the credit card authorization codes received by a business are compiled. The codes can be compiled in a data file on credit card terminals, processing software or an electronic payment gateway. The codes are then uploaded and processed simultaneously, typically at the end of the day.

To settle, or close, all the batch authorization codes must be sent to a payment processor for sorting and forwarding to the issuing banks, who have already placed a hold on the cardholder’s line of credit or account funds to cover the transaction amount. At settlement, banks release those funds to the processor who, in turn, deposits them into the merchant’s account, usually within 48 hours of the transaction. The issuing bank bills the purchase on the cardholder’s next statement.

TSYS® Batch Processing

TSYS offers an auto-batch close service that automatically settles your transactions at the same time every day. Batch processing for automated recurring billing — including monthly subscription or membership fees — is a convenient option that can be set up simply by uploading a file containing customers’ transaction information for billing. 

If there are no transactions pending when it’s time to close the batch, the process doesn’t take place and no batch fee is charged.

Batch Processing Electronic Payments

Batch processing through our customizable electronic payment gateway requires no special equipment or software. Credit card transactions are processed in real-time via an internet connection that is fully PCI compliant, and utilizes most fraud prevention tools, including AVS, CVV, CVC and CID to protect you and your customers from data breach and identity theft.

Learn More

Contact a TSYS representative today to help you select processing solutions that meet your unique business requirements and provide more information about batch processing, merchant accounts and the products and services we offer. 

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