Understanding batch payment processing

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Libby James
Merchant Services Expert

Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.

What is batch payment processing?

Batch card processing, also known as batch out,is where the merchant processes all of its pending payments at a time agreed with the account provider, ordinally at the close of business. Each individual customer bank then pays the balance to the merchant in what’s referred to as ‘settlement’ which can take up to a few days.

Which industries use credit card payment batch processing?

Batch processing credit card transactions are normally used within mail order companies or businesses who have high volumes of payments. The reason they do so, is because no user interaction is needed once the batch processing is underway. Batch card processing differs from individual processing which requires user interaction from start to finish. Batch out credit card processing can also save on transaction fees due to processing in one lump opposed to paying out for each and every transaction throughout the day.

How does batch credit card processing work?

Debit and creditcard batch processing works by compiling the customer payment information and authorisation securely, until the batch out takes place. A file is created for each transaction. This data can be stored in one of three ways, using batch credit card processing software, a payment gateway suitable for batch payments or the card terminal itself. The file is then later sent, along with authorisation codes, to the credit card processing company known as the acquiring bank.

From batch out to settlement tends to take 48 hours, as the banks communicate between themselves taking the money from the customers bank and therefore processing payment. From the customers point of view, there is no difference between batch card processing and a standard transaction.

What are the batch fees when credit card processing in large amounts?

Most merchants choose to process their batch payments in one go, the reason behind this is that card processors charge a fee per batch. This fee varies from provider to provider, the amount you are processing, the type of batch processing payment gateway required and the currencies needed. Speak to our experts today for a tailored quotation.

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Libby James

Libby James Co-founded Merchant Advice Service alongside David Bird in 2016. Her finance background, coupled with retail and customer service experience, gave Libby the drive to bring transparency and non-biased advice to the world of merchant services. Having come from the heavily regulated mortgage and insurance industry, Libby found it puzzling that other financial sectors lacked regulation and transparency leaving customers confused and unable to make informed decisions when it came to accepting card payments. This was soon to become Libby’s obsession!

With the help of some of the industry’s best, Libby began to research acquiring banks, complex terminology/regulation, and the problems customers experience within merchant services and payment gateway markets. She spent years on sourcing solutions for complex clients, which previously others were unable to assist with. Libby established relationships with brokers and banks which would soon form the cornerstone of Merchant Advice Service. As a result Libby has been featured in high-profile publications across the web.

Libby is proud to be the entrepreneur’s champion, supporting start-up businesses regularly. Her industry insights can often be found on LinkedIn where she provides free of charge advice and money saving pointers. It’s safe to say she has her finger on the pulse of everything card payments related.

Libby speaks of her experience in founding and running Merchant Advice Service…

‘Merchant Advice Service is one of my greatest achievements to date. We help business owners to overcome card processing issues which can become detrimental to their business. We assist SME’s in finding suitable card payments solutions, helping them create their vision. Each and every day is different, exciting and fore filling. As technology advances I can’t wait to see the way in which the merchant services market advances, and I’m pleased that our business will play a part in educating company owners along the way.’

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